Canadian Imperial Bank of Commerce Issues Pessimistic Forecast for Mercer International (NASDAQ:MERC) Stock Price

Mercer International (NASDAQ:MERC) (TSE:MRI.U) had its target price reduced by Canadian Imperial Bank of Commerce from $1.50 to $1.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm presently has a “neutral” rating on the basic materials company’s stock. Canadian Imperial Bank of Commerce’s price objective points to a potential upside of 58.23% from the company’s current price.

Other equities research analysts have also issued research reports about the company. Royal Bank Of Canada dropped their price target on Mercer International from $1.00 to $0.75 and set a “sector perform” rating on the stock in a research report on Friday. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Mercer International in a research note on Wednesday, June 24th. Wall Street Zen downgraded shares of Mercer International from a “sell” rating to a “strong sell” rating in a research report on Saturday. Finally, TD restated a “sell” rating on shares of Mercer International in a report on Tuesday, July 14th. Two research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Strong Sell” and a consensus price target of $1.20.

Mercer International Trading Down 2.4%

NASDAQ:MERC traded down $0.02 during trading hours on Tuesday, hitting $0.63. The stock had a trading volume of 29,461 shares, compared to its average volume of 603,371. The business’s 50 day moving average is $0.81 and its 200-day moving average is $1.39. The company has a debt-to-equity ratio of 23.58, a quick ratio of 1.22 and a current ratio of 2.17. The company has a market cap of $42.33 million, a price-to-earnings ratio of -0.08 and a beta of 0.52. Mercer International has a one year low of $0.53 and a one year high of $4.47.

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

Insiders Place Their Bets

In related news, major shareholder Peter R. Kellogg purchased 380,000 shares of the stock in a transaction on Monday, May 18th. The shares were purchased at an average price of $0.96 per share, with a total value of $364,800.00. Following the transaction, the insider directly owned 1,852,000 shares of the company’s stock, valued at $1,777,920. This trade represents a 25.82% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders purchased 1,383,743 shares of company stock valued at $1,264,565 in the last ninety days. 1.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Mercer International

Several hedge funds and other institutional investors have recently made changes to their positions in MERC. Millennium Management LLC increased its holdings 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 buying an additional 137,906 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Mercer International by 2.7% in the 4th quarter. Geode Capital Management LLC now owns 561,001 shares of the basic materials company’s stock valued at $1,111,000 after acquiring an additional 14,603 shares during the period. Gabelli Funds LLC bought a new position in shares of Mercer International in the 2nd quarter valued at about $1,804,000. Jump Financial LLC increased its stake in shares of Mercer International by 340.6% during the 2nd quarter. Jump Financial LLC now owns 276,837 shares of the basic materials company’s stock worth $969,000 after purchasing an additional 214,008 shares during the last quarter. Finally, Gamco Investors INC. ET AL bought a new stake in shares of Mercer International in the 2nd quarter valued at about $244,000. 85.79% of the stock is owned by institutional investors.

About Mercer International

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.