BidaskClub Lowers Mercer International (MERC) to Strong Sell

BidaskClub cut shares of Mercer International (NASDAQ:MERC) (TSE:MRI.U) from a sell rating to a strong sell rating in a research report sent to investors on Friday.

A number of other research analysts also recently issued reports on MERC. TD Securities upgraded shares of Mercer International from a hold rating to a buy rating and boosted their target price for the company from $15.00 to $20.00 in a research report on Wednesday, June 20th. Royal Bank of Canada reiterated a buy rating and set a $22.00 target price on shares of Mercer International in a research report on Thursday, July 19th. ValuEngine downgraded shares of Mercer International from a buy rating to a hold rating in a research report on Friday, July 20th. Finally, Raymond James boosted their target price on shares of Mercer International from $19.00 to $19.50 and gave the company an outperform rating in a research report on Friday, July 27th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and four have given a buy rating to the stock. Mercer International has an average rating of Hold and a consensus price target of $20.63.

Mercer International stock opened at $16.54 on Friday. The company has a debt-to-equity ratio of 1.37, a quick ratio of 2.51 and a current ratio of 3.51. Mercer International has a 12-month low of $12.05 and a 12-month high of $19.14. The firm has a market cap of $1.10 billion, a P/E ratio of 10.44 and a beta of 1.66.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last released its earnings results on Thursday, July 26th. The basic materials company reported $0.26 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.34 by ($0.08). Mercer International had a net margin of 7.75% and a return on equity of 19.39%. The company had revenue of $346.50 million for the quarter, compared to analyst estimates of $357.65 million. The company’s revenue was down 5.8% on a year-over-year basis.

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 3rd. Shareholders of record on Wednesday, September 26th were paid a dividend of $0.125 per share. The ex-dividend date of this dividend was Tuesday, September 25th. This represents a $0.50 dividend on an annualized basis and a yield of 3.02%.

In other Mercer International news, Director James Shepherd sold 4,800 shares of the business’s stock in a transaction on Tuesday, July 31st. The shares were sold at an average price of $17.75, for a total transaction of $85,200.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 3.70% of the company’s stock.

Hedge funds have recently made changes to their positions in the business. United Services Automobile Association increased its stake in Mercer International by 35.8% during the 2nd quarter. United Services Automobile Association now owns 16,180 shares of the basic materials company’s stock valued at $283,000 after purchasing an additional 4,266 shares in the last quarter. Paloma Partners Management Co bought a new stake in shares of Mercer International in the 2nd quarter worth $319,000. Livforsakringsbolaget Skandia Omsesidigt grew its stake in shares of Mercer International by 377.8% in the 2nd quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 21,500 shares of the basic materials company’s stock worth $376,000 after acquiring an additional 17,000 shares in the last quarter. Public Employees Retirement System of Ohio grew its stake in shares of Mercer International by 7.3% in the 2nd quarter. Public Employees Retirement System of Ohio now owns 132,529 shares of the basic materials company’s stock worth $2,319,000 after acquiring an additional 9,039 shares in the last quarter. Finally, Portolan Capital Management LLC bought a new stake in shares of Mercer International in the 2nd quarter worth $5,686,000. Institutional investors and hedge funds own 74.73% of the company’s stock.

About Mercer International

Mercer International Inc, together with its subsidiaries, manufactures and sells northern bleached softwood Kraft (NBSK) pulp in the United States, Europe, Asia, and internationally. The company operates in two segments, Pulp and Wood Products. It produces NBSK pulp primarily from wood chips and pulp logs; carbon neutral or green energy using carbon-neutral bio-fuels, such as black liquor and wood waste; and tall oil for use as a chemical additive and green energy source.

Further Reading: Cash Flow

Analyst Recommendations for Mercer International (NASDAQ:MERC)

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