Mercury General (NYSE:MCY) Shares Gap Up After Strong Earnings

Mercury General Co. (NYSE:MCY)’s stock price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $50.09, but opened at $59.97. Mercury General shares last traded at $58.97, with a volume of 719,992 shares changing hands.

The insurance provider reported $2.78 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.94 by $0.84. Mercury General had a return on equity of 18.04% and a net margin of 10.18%.

Mercury General Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 27th. Stockholders of record on Thursday, March 13th will be paid a $0.3175 dividend. This is a positive change from Mercury General’s previous quarterly dividend of $0.32. This represents a $1.27 dividend on an annualized basis and a dividend yield of 2.20%. Mercury General’s payout ratio is currently 12.59%.

Analysts Set New Price Targets

Several equities analysts have weighed in on the stock. StockNews.com downgraded shares of Mercury General from a “strong-buy” rating to a “buy” rating in a report on Thursday, December 26th. Raymond James upgraded shares of Mercury General from an “outperform” rating to a “strong-buy” rating and boosted their target price for the stock from $70.00 to $80.00 in a report on Wednesday.

Insiders Place Their Bets

In related news, VP Heidi C. Sullivan sold 1,076 shares of Mercury General stock in a transaction dated Tuesday, December 3rd. The stock was sold at an average price of $77.28, for a total value of $83,153.28. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 35.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Mercury General

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Allworth Financial LP grew its position in shares of Mercury General by 1,190.5% in the 3rd quarter. Allworth Financial LP now owns 542 shares of the insurance provider’s stock worth $34,000 after buying an additional 500 shares during the last quarter. Smartleaf Asset Management LLC lifted its position in Mercury General by 145.1% during the fourth quarter. Smartleaf Asset Management LLC now owns 554 shares of the insurance provider’s stock valued at $37,000 after purchasing an additional 328 shares during the period. SBI Securities Co. Ltd. purchased a new stake in shares of Mercury General in the fourth quarter worth about $44,000. Millstone Evans Group LLC acquired a new stake in shares of Mercury General during the 4th quarter worth approximately $60,000. Finally, Steward Partners Investment Advisory LLC purchased a new position in Mercury General in the fourth quarter valued at $68,000. 42.39% of the stock is currently owned by institutional investors.

Mercury General Stock Up 15.5 %

The company has a market cap of $3.20 billion, a price-to-earnings ratio of 5.84 and a beta of 0.85. The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 0.31. The business has a fifty day moving average of $60.25 and a two-hundred day moving average of $63.84.

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, and umbrella insurance products. Its automobile insurance products include collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards; and homeowners insurance products comprise dwelling, liability, personal property, and other coverages.