TD Securities Issues Pessimistic Forecast for Mercer International (NASDAQ:MERC) Stock Price

Key Points

• TD Securities has lowered the price target for Mercer International's stock from $3.50 to $3.00, indicating a potential downside of 6.10% from its current price.
• Several analysts have reduced their price targets for Mercer International, with the consensus rating remaining a "Hold" and a price target of $4.25.
• Mercer International's stock recently traded down 4.1% to $3.20, following a quarterly earnings report that missed estimates and reflected a negative net margin of 5.60%.

Mercer International (NASDAQ:MERC - Free Report) TSE: MRI.U had its price objective decreased by TD Securities from $3.50 to $3.00 in a research note released on Tuesday morning, Marketbeat reports. TD Securities currently has a hold rating on the basic materials company's stock.

MERC has been the subject of several other research reports. Royal Bank Of Canada decreased their price target on Mercer International from $7.00 to $5.00 and set a "sector perform" rating for the company in a research note on Tuesday, April 22nd. Raymond James Financial cut their price objective on Mercer International from $7.00 to $5.00 and set a "market perform" rating for the company in a research report on Wednesday, April 30th. Finally, CIBC cut their price target on Mercer International from $5.00 to $4.00 and set a "neutral" rating for the company in a report on Tuesday, July 22nd. Five equities research analysts have rated the stock with a hold rating, According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $4.25.

Mercer International Stock Performance

Mercer International stock traded down $0.07 during mid-day trading on Tuesday, hitting $2.95. 1,055,495 shares of the company's stock traded hands, compared to its average volume of 1,277,609. Mercer International has a one year low of $2.83 and a one year high of $8.28. The company has a market cap of $197.59 million, a PE ratio of -1.81 and a beta of 1.08. The firm has a 50 day moving average price of $3.60 and a 200 day moving average price of $4.92. The company has a quick ratio of 1.73, a current ratio of 3.10 and a debt-to-equity ratio of 3.42.

Mercer International (NASDAQ:MERC - Get Free Report) TSE: MRI.U last issued its earnings results on Thursday, July 31st. The basic materials company reported ($1.29) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.73) by ($0.56). Mercer International had a negative return on equity of 23.88% and a negative net margin of 5.60%. The company had revenue of $453.52 million during the quarter, compared to analyst estimates of $514.46 million. On average, equities analysts forecast that Mercer International will post -0.29 EPS for the current year.

Insider Activity at Mercer International

In related news, CEO Estrada Juan Carlos Bueno bought 8,000 shares of the company's stock in a transaction dated Wednesday, June 11th. The stock was acquired at an average cost of $3.77 per share, with a total value of $30,160.00. Following the acquisition, the chief executive officer owned 75,615 shares in the company, valued at approximately $285,068.55. This represents a 11.83% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, major shareholder Peter R. Kellogg bought 760,000 shares of the company's stock in a transaction dated Tuesday, July 22nd. The stock was bought at an average cost of $3.25 per share, with a total value of $2,470,000.00. Following the completion of the acquisition, the insider owned 2,300,000 shares in the company, valued at $7,475,000. This represents a 49.35% increase in their position. The disclosure for this purchase can be found here. In the last ninety days, insiders acquired 912,020 shares of company stock valued at $3,031,186. Insiders own 1.00% of the company's stock.

Institutional Investors Weigh In On Mercer International

An institutional investor recently bought a new position in Mercer International stock. KLP Kapitalforvaltning AS purchased a new position in shares of Mercer International Inc. (NASDAQ:MERC - Free Report) TSE: MRI.U during the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor purchased 9,000 shares of the basic materials company's stock, valued at approximately $58,000. 85.79% of the stock is owned by hedge funds and other institutional investors.

Mercer International Company Profile

Mercer International Inc, together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) and northern bleached hardwood kraft (NBHK) pulp worldwide. The company operates through two segments, Pulp and Solid Wood. It manufactures, sells, and distributes pulp, electricity, and chemicals through pulp mills.