Mercury General (NYSE:MCY) Share Price Passes Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Mercury General shares crossed above their 200-day moving average, reaching $101.39 before trading near $100.13; the stock was down 0.8% and remains below its 50-day average of $104.92.
• Analyst sentiment is strongly positive: coverage includes one “Strong Buy” and one “Buy” rating, while recent research firms upgraded or reaffirmed bullish views.
• The insurer reported quarterly earnings of $3.52 per share, beating estimates by $0.99, and revenue of $1.68 billion; it also declared a $0.3175 quarterly dividend, equivalent to a 1.3% yield.

Mercury General Corporation (NYSE:MCY - Get Free Report) crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $100.11 and traded as high as $101.39. Mercury General shares last traded at $100.13, with a volume of 196,018 shares trading hands.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on MCY shares. Weiss Ratings reiterated a "buy (b)" rating on shares of Mercury General in a research report on Tuesday, September 1st. Wall Street Zen upgraded shares of Mercury General from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 4th. Finally, Zacks Research raised shares of Mercury General from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, August 18th. One equities research analyst has rated the stock with a Strong Buy rating and one has issued a Buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Strong Buy".

Mercury General Stock Down 0.8%

The company has a current ratio of 0.47, a quick ratio of 0.47 and a debt-to-equity ratio of 0.33. The company has a market cap of $5.55 billion, a price-to-earnings ratio of 5.92 and a beta of 0.90. The business has a fifty day moving average price of $104.92 and a two-hundred day moving average price of $100.11.

Mercury General (NYSE:MCY - Get Free Report) last issued its earnings results on Tuesday, August 4th. The insurance provider reported $3.52 earnings per share for the quarter, topping the consensus estimate of $2.53 by $0.99. Mercury General had a return on equity of 31.98% and a net margin of 14.77%.The company had revenue of $1.68 billion for the quarter, compared to analyst estimates of $1.52 billion. On average, equities analysts predict that Mercury General Corporation will post 12.75 earnings per share for the current year.

Mercury General Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 10th will be given a $0.3175 dividend. This represents a $1.27 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend is Thursday, September 10th. Mercury General's dividend payout ratio is currently 7.51%.

Institutional Investors Weigh In On Mercury General

Hedge funds have recently made changes to their positions in the stock. Allworth Financial LP acquired a new stake in Mercury General in the 2nd quarter valued at $35,000. Hilton Head Capital Partners LLC acquired a new position in Mercury General during the fourth quarter worth $38,000. PenderFund Capital Management Ltd. acquired a new position in Mercury General during the second quarter worth $44,000. IFP Advisors Inc lifted its holdings in shares of Mercury General by 79.4% during the fourth quarter. IFP Advisors Inc now owns 506 shares of the insurance provider's stock valued at $48,000 after acquiring an additional 224 shares during the period. Finally, Caitlin John LLC bought a new position in shares of Mercury General during the second quarter valued at $53,000. Institutional investors own 42.39% of the company's stock.

About Mercury General

Mercury General Corporation is an insurance holding company that writes personal and commercial property and casualty insurance. Its principal business is automobile insurance, including coverage for private passenger vehicles and commercial vehicles. The company also offers homeowners, renters, condominium, and other property-related insurance products, along with selected mechanical protection and umbrella coverage.

Founded in 1961, Mercury General is based in Los Angeles, California, and operates primarily through subsidiaries that market insurance directly and through independent agents.

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