Mercer International (NASDAQ:MERC) Downgraded by StockNews.com to Sell

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

Several other brokerages have also issued reports on MERC. CIBC decreased their price target on Mercer International from $10.00 to $8.50 and set a neutral rating on the stock in a research note on Tuesday, August 13th. Royal Bank of Canada reduced their target price on Mercer International from $10.00 to $8.00 and set a sector perform rating for the company in a report on Monday, August 12th. One research analyst has rated the stock with a sell rating and four have assigned a hold rating to the company’s stock. Based on data from MarketBeat.com, Mercer International presently has a consensus rating of Hold and an average price target of $9.38.

Mercer International Trading Down 5.3 %

NASDAQ MERC opened at $6.38 on Friday. Mercer International has a 12 month low of $5.33 and a 12 month high of $11.20. The stock has a 50-day simple moving average of $6.87 and a 200 day simple moving average of $8.62. The company has a market capitalization of $426.63 million, a PE ratio of -1.86 and a beta of 1.34. The company has a current ratio of 3.46, a quick ratio of 2.17 and a debt-to-equity ratio of 3.22.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last issued its quarterly earnings results on Thursday, August 8th. The basic materials company reported ($0.50) EPS 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 company had revenue of $499.40 million for the quarter, compared to analyst estimates of $482.35 million. During the same period last year, the company posted ($1.48) earnings per share. The business’s revenue for the quarter was down 5.8% on a year-over-year basis. Research analysts forecast that Mercer International will post -1.15 EPS for the current year.

Mercer International Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 3rd. Investors of record on Wednesday, September 25th will be paid a $0.075 dividend. The ex-dividend date is Wednesday, September 25th. This represents a $0.30 dividend on an annualized basis and a yield of 4.70%. Mercer International’s dividend payout ratio is presently -8.75%.

Insider Activity

In related news, CEO Estrada Juan Carlos Bueno acquired 7,800 shares of Mercer International stock in a transaction dated Friday, September 13th. The shares were purchased at an average cost of $6.60 per share, with a total value of $51,480.00. Following the completion of the purchase, the chief executive officer now owns 67,615 shares of the company’s stock, valued at $446,259. The transaction was disclosed in a document filed with the SEC, which is available through this link. In other Mercer International news, VP Wolfgang Beck bought 18,500 shares of the stock in a transaction dated Tuesday, September 3rd. The stock was purchased at an average cost of $6.02 per share, for a total transaction 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 transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Estrada Juan Carlos Bueno bought 7,800 shares of the stock in a transaction dated Friday, September 13th. The shares were acquired at an average price of $6.60 per share, with a total value of $51,480.00. Following the completion of the acquisition, the chief executive officer now directly owns 67,615 shares of the company’s stock, valued at approximately $446,259. The disclosure for this purchase can be found here. Over the last three months, insiders have purchased 41,300 shares of company stock valued at $252,650. 4.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Mercer International

Several large investors have recently made changes to their positions in the business. Russell Investments Group Ltd. bought a new stake in shares of Mercer International during the first quarter valued at approximately $193,000. Everence Capital Management Inc. purchased a new position in shares of Mercer International during the 1st quarter worth $261,000. Finally, SG Americas Securities LLC lifted its stake in shares of Mercer International by 26.5% during the 1st quarter. SG Americas Securities LLC now owns 51,201 shares of the basic materials company’s stock valued at $509,000 after buying an additional 10,713 shares in the last quarter. 85.79% of the stock is currently owned by hedge funds and other institutional investors.

About Mercer International

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.