Mercury General (MCY) Rating Increased to Strong-Buy at Zacks Investment Research

Mercury General (NYSE:MCY) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research report issued on Thursday. The firm presently has a $70.00 price objective on the insurance provider’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 18.02% from the stock’s current price.

According to Zacks, “Mercury General Corp. is engaged primarily in writing all risk classifications of automobile insurance in a number of states, principally California. The company offers automobile policyholders the following types of coverage: bodily injury liability, underinsured and uninsured motorist, property damage liability, comprehensive, collision and other hazards specified in the policy. “

A number of other research analysts have also weighed in on MCY. ValuEngine raised Mercury General from a “sell” rating to a “hold” rating in a report on Tuesday, July 31st. TheStreet raised Mercury General from a “c+” rating to a “b-” rating in a report on Friday, August 10th. Finally, Keefe, Bruyette & Woods started coverage on Mercury General in a report on Tuesday, August 28th. They set a “buy” rating and a $64.00 target price on the stock.

NYSE:MCY opened at $59.31 on Thursday. The company has a market cap of $3.39 billion, a price-to-earnings ratio of 36.16, a P/E/G ratio of 0.71 and a beta of 0.52. Mercury General has a twelve month low of $41.40 and a twelve month high of $61.83. The company has a current ratio of 0.40, a quick ratio of 0.40 and a debt-to-equity ratio of 0.21.

Mercury General (NYSE:MCY) last posted its quarterly earnings results on Monday, October 29th. The insurance provider reported $1.11 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.73 by $0.38. The firm had revenue of $905.34 million for the quarter, compared to analyst estimates of $877.06 million. Mercury General had a return on equity of 7.13% and a net margin of 2.80%. The business’s quarterly revenue was up 9.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.60 EPS. Research analysts forecast that Mercury General will post 2.47 EPS for the current fiscal year.

Several hedge funds have recently bought and sold shares of the stock. BlackRock Inc. boosted its stake in Mercury General by 2.1% in the 2nd quarter. BlackRock Inc. now owns 2,945,009 shares of the insurance provider’s stock valued at $134,175,000 after purchasing an additional 61,532 shares during the period. Dimensional Fund Advisors LP boosted its stake in Mercury General by 16.6% in the 2nd quarter. Dimensional Fund Advisors LP now owns 2,052,259 shares of the insurance provider’s stock valued at $93,500,000 after purchasing an additional 291,742 shares during the period. Renaissance Technologies LLC boosted its stake in Mercury General by 4.2% in the 2nd quarter. Renaissance Technologies LLC now owns 980,900 shares of the insurance provider’s stock valued at $44,690,000 after purchasing an additional 39,300 shares during the period. First Trust Advisors LP boosted its stake in Mercury General by 19.9% in the 2nd quarter. First Trust Advisors LP now owns 667,843 shares of the insurance provider’s stock valued at $30,427,000 after purchasing an additional 111,052 shares during the period. Finally, Bank of New York Mellon Corp boosted its stake in Mercury General by 4.8% in the 2nd quarter. Bank of New York Mellon Corp now owns 537,048 shares of the insurance provider’s stock valued at $24,469,000 after purchasing an additional 24,606 shares during the period. 47.86% of the stock is currently owned by institutional investors and hedge funds.

Mercury General Company Profile

Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. The company also writes homeowners, commercial automobile, commercial property, mechanical protection, fire, and umbrella insurance. Its automobile insurance products cover collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards; and homeowners insurance products cover dwelling, liability, personal property, fire, and other hazards.

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