Mercer International (NASDAQ:MERC) Cut to Sell at StockNews.com

StockNews.com downgraded shares of Mercer International (NASDAQ:MERC) (TSE:MRI.U) from a hold rating to a sell rating in a research report report published on Friday.

A number of other equities analysts have also recently commented on MERC. Royal Bank of Canada reduced their price objective on shares of Mercer International from $10.00 to $8.00 and set a sector perform rating for the company in a research report on Monday, August 12th. CIBC reduced their price objective on shares of Mercer International from $10.00 to $8.50 and set a neutral rating for the company in a research report on Tuesday, August 13th. One equities research analyst has rated the stock with a sell rating and four have assigned a hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of Hold and an average target price of $9.38.

Mercer International Price Performance

NASDAQ:MERC opened at $6.74 on Friday. Mercer International has a 1-year low of $5.33 and a 1-year high of $11.20. The company has a current ratio of 3.46, a quick ratio of 2.17 and a debt-to-equity ratio of 3.22. The firm has a fifty day simple moving average of $6.91 and a 200 day simple moving average of $8.64. The stock has a market capitalization of $450.70 million, a PE ratio of -1.97 and a beta of 1.34.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last released its earnings results on Thursday, August 8th. The basic materials company reported ($0.50) earnings per share for the quarter, missing the consensus estimate of ($0.42) by ($0.08). Mercer International had a negative net margin of 9.90% and a negative return on equity of 17.93%. The firm had revenue of $499.40 million during the quarter, compared to the consensus estimate of $482.35 million. During the same period in the prior year, the business posted ($1.48) earnings per share. Mercer International’s quarterly revenue was down 5.8% compared to the same quarter last year. On average, research analysts expect that Mercer International will post -1.15 EPS for the current fiscal year.

Mercer International Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 3rd. Stockholders of record on Wednesday, September 25th will be issued a dividend of $0.075 per share. This represents a $0.30 dividend on an annualized basis and a dividend yield of 4.45%. The ex-dividend date is Wednesday, September 25th. Mercer International’s dividend payout ratio is currently -8.75%.

Insider Transactions at Mercer International

In other news, Director Rainer Rettig bought 5,000 shares of the company’s stock in a transaction dated Monday, September 9th. The stock was bought at an average price of $6.24 per share, with a total value of $31,200.00. Following the completion of the acquisition, the director now owns 42,463 shares of the company’s stock, valued at $264,969.12. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. In other news, VP Wolfgang Beck bought 18,500 shares of the company’s stock in a transaction dated Tuesday, September 3rd. The stock was bought at an average price of $6.02 per share, with a total value of $111,370.00. Following the completion of the acquisition, the vice president now owns 26,263 shares of the company’s stock, valued at $158,103.26. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Rainer Rettig purchased 5,000 shares of the company’s stock in a transaction that occurred on Monday, September 9th. The stock was bought at an average cost of $6.24 per share, with a total value of $31,200.00. Following the purchase, the director now owns 42,463 shares of the company’s stock, valued at $264,969.12. The disclosure for this purchase can be found here. Over the last 90 days, insiders bought 33,500 shares of company stock valued at $201,170. 4.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. SG Americas Securities LLC raised its stake in Mercer International by 26.5% in the first quarter. SG Americas Securities LLC now owns 51,201 shares of the basic materials company’s stock valued at $509,000 after purchasing an additional 10,713 shares in the last quarter. Russell Investments Group Ltd. acquired a new position in Mercer International during the first quarter worth about $193,000. Finally, Everence Capital Management Inc. acquired a new position in Mercer International during the first quarter worth about $261,000. Institutional investors and hedge funds own 85.79% of the company’s stock.

Mercer International Company Profile

Mercer International Inc, together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) and northern bleached hardwood kraft (NBHK) pulp worldwide. The company operates through two segments, Pulp and Solid Wood. It manufactures, sells, and distributes pulp, electricity, and chemicals through pulp mills.