Mercer International Inc. (NASDAQ:MERC) Receives Average Rating of “Strong Sell” from Analysts

Mercer International Inc. (NASDAQ:MERC) (TSE:MRI.U) has earned an average recommendation of “Strong Sell” from the six ratings firms that are currently covering the stock, Marketbeat Ratings reports. Four investment analysts have rated the stock with a sell recommendation and two have assigned a hold recommendation to the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $1.13.

Several equities analysts recently weighed in on the stock. Wall Street Zen upgraded shares of Mercer International from a “strong sell” rating to a “sell” rating in a report on Saturday, August 15th. Canadian Imperial Bank of Commerce dropped their price objective on shares of Mercer International from $1.50 to $1.00 and set a “neutral” rating on the stock in a report on Tuesday, July 21st. TD dropped their price objective on shares of Mercer International from $0.40 to $0.15 and set a “sell” rating on the stock in a report on Monday, August 10th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Mercer International in a research note on Wednesday, June 24th. Finally, Royal Bank Of Canada reduced their target price on shares of Mercer International from $1.00 to $0.75 and set a “sector perform” rating for the company in a report on Friday, July 17th.

Mercer International Price Performance

Mercer International stock opened at $0.43 on Monday. The company has a debt-to-equity ratio of 23.58, a quick ratio of 0.68 and a current ratio of 1.30. The business’s 50-day simple moving average is $0.65 and its two-hundred day simple moving average is $1.09. The company has a market cap of $28.50 million, a PE ratio of -0.06 and a beta of 0.53. Mercer International has a fifty-two week low of $0.42 and a fifty-two week high of $3.38.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last announced its quarterly earnings data on Thursday, August 6th. The basic materials company reported ($1.13) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.95) by ($0.18). Mercer International had a negative return on equity of 352.57% and a negative net margin of 27.86%.The firm had revenue of $460.28 million during the quarter, compared to analysts’ expectations of $476.00 million. Equities analysts anticipate that Mercer International will post -3.19 EPS for the current year.

Insiders Place Their Bets

In related news, major shareholder Peter R. Kellogg acquired 51,441 shares of Mercer International stock in a transaction on Friday, June 12th. The stock was acquired at an average price of $0.92 per share, for a total transaction of $47,325.72. Following the purchase, the insider owned 1,385,672 shares of the company’s stock, valued at approximately $1,274,818.24. This represents a 3.86% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Over the last 90 days, insiders bought 383,743 shares of company stock worth $331,665. 1.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Jump Financial LLC lifted its stake in shares of Mercer International by 340.6% in the 2nd quarter. Jump Financial LLC now owns 276,837 shares of the basic materials company’s stock valued at $969,000 after purchasing an additional 214,008 shares during the period. Gamco Investors INC. ET AL acquired a new stake in Mercer International during the second quarter valued at $244,000. Gabelli Funds LLC acquired a new stake in Mercer International during the second quarter valued at $1,804,000. Millennium Management LLC increased its holdings in Mercer International by 16.1% in the third quarter. Millennium Management LLC now owns 994,974 shares of the basic materials company’s stock valued at $2,866,000 after buying an additional 137,906 shares in the last quarter. Finally, Geode Capital Management LLC increased its holdings in Mercer International by 2.7% in the fourth quarter. Geode Capital Management LLC now owns 561,001 shares of the basic materials company’s stock valued at $1,111,000 after buying an additional 14,603 shares in the last quarter. 85.79% of the stock is 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.