Mercer International Inc. (NASDAQ:MERC) Given Consensus Recommendation of “Strong Sell” by Brokerages

Mercer International Inc. (NASDAQ:MERC) (TSE:MRI.U) has been given an average rating of “Strong Sell” by the six analysts that are presently covering the firm, MarketBeat.com reports. Four research analysts have rated the stock with a sell recommendation and two have issued a hold recommendation on the company. The average 12-month target price among analysts that have covered the stock in the last year is $1.85.

Several equities analysts recently issued reports on MERC shares. TD Securities cut shares of Mercer International from a “hold” rating to a “strong sell” rating in a research note on Wednesday, February 18th. Royal Bank Of Canada decreased their target price on shares of Mercer International from $1.25 to $1.00 and set a “sector perform” rating for the company in a research note on Monday, May 11th. TD decreased their target price on shares of Mercer International from $1.00 to $0.50 and set a “sell” rating for the company in a research note on Monday, May 11th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Mercer International in a research note on Friday, March 27th.

Mercer International Stock Performance

MERC opened at $0.80 on Wednesday. The company has a debt-to-equity ratio of 23.58, a current ratio of 2.17 and a quick ratio of 1.22. The firm has a fifty day moving average price of $1.07 and a 200 day moving average price of $1.62. Mercer International has a 1 year low of $0.75 and a 1 year high of $4.47. The stock has a market cap of $53.32 million, a P/E ratio of -0.10 and a beta of 0.47.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last posted its earnings results on Thursday, May 7th. The basic materials company reported ($0.78) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.74) by ($0.04). Mercer International had a negative net margin of 28.51% and a negative return on equity of 136.20%. The firm had revenue of $489.30 million during the quarter, compared to analyst estimates of $493.00 million. Equities research analysts anticipate that Mercer International will post -2.21 earnings per share for the current year.

Insiders Place Their Bets

In related news, major shareholder Peter R. Kellogg acquired 380,000 shares of Mercer International stock in a transaction on Monday, May 18th. The stock was bought at an average cost of $0.96 per share, for a total transaction of $364,800.00. Following the completion of the transaction, the insider owned 1,852,000 shares of the company’s stock, valued at approximately $1,777,920. The trade was a 25.82% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Insiders have acquired 1,000,000 shares of company stock worth $932,900 in the last ninety days. Corporate insiders own 1.00% of the company’s stock.

Hedge Funds Weigh In On Mercer International

Large investors have recently added to or reduced their stakes in the stock. Geode Capital Management LLC raised its position in Mercer International by 2.7% during the fourth quarter. Geode Capital Management LLC now owns 561,001 shares of the basic materials company’s stock worth $1,111,000 after acquiring an additional 14,603 shares during the period. Millennium Management LLC raised its position in Mercer International by 16.1% during the third quarter. Millennium Management LLC now owns 994,974 shares of the basic materials company’s stock worth $2,866,000 after acquiring an additional 137,906 shares during the period. Gabelli Funds LLC acquired a new position in Mercer International during the second quarter worth $1,804,000. Jump Financial LLC raised its position in Mercer International by 340.6% during the second quarter. Jump Financial LLC now owns 276,837 shares of the basic materials company’s stock worth $969,000 after acquiring an additional 214,008 shares during the period. Finally, Gamco Investors INC. ET AL acquired a new position in Mercer International during the second quarter worth $244,000. 85.79% of the stock is currently owned by institutional investors and hedge funds.

Mercer International Company Profile

Mercer International Inc is a publicly traded pulp producer headquartered in Vancouver, British Columbia. Listed on the NASDAQ under the symbol MERC, the company specializes in the manufacture of Northern Bleached Softwood Kraft (NBSK) pulp and dissolving pulp for use in tissue, specialty paper and textile applications.

Mercer’s core business activities include the operation of integrated pulp mills in North America and Europe. Its production portfolio encompasses NBSK pulp, renowned for its strength and versatility, and dissolving pulp, which serves as a key raw material in the manufacture of viscose, cellulose acetate and other specialty products.

The company’s facilities are located in British Columbia and the U.S.