Mercer International Inc. (NASDAQ:MERC) Sees Significant Increase in Short Interest

Mercer International Inc. (NASDAQ:MERC) (TSE:MRI.U) saw a large increase in short interest in August. As of August 15th, there was short interest totaling 1,960,000 shares, anincreaseof67.5% from the July 31st total of 1,170,000 shares. Approximately5.3% of the shares of the stock are short sold. Based on an average trading volume of 797,700 shares, the days-to-cover ratio is presently 2.5 days. Based on an average trading volume of 797,700 shares, the days-to-cover ratio is presently 2.5 days. Approximately5.3% of the shares of the stock are short sold.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on MERC shares. TD Securities reduced their price objective on Mercer International from $3.50 to $3.00 and set a “hold” rating on the stock in a research note on Tuesday, August 5th. CIBC lowered their price objective on Mercer International from $5.00 to $4.00 and set a “neutral” rating on the stock in a report on Tuesday, July 22nd. Four analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $4.25.

Insider Buying and Selling

In other news, CEO Estrada Juan Carlos Bueno acquired 8,000 shares of the stock in a transaction that occurred on Wednesday, June 11th. The shares were bought at an average cost of $3.77 per share, for a total transaction of $30,160.00. Following the acquisition, the chief executive officer owned 75,615 shares in the company, valued at approximately $285,068.55. This represents a 11.83% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Peter R. Kellogg acquired 760,000 shares of the stock in a transaction that occurred on Tuesday, July 22nd. The stock was purchased at an average price of $3.25 per share, for a total transaction of $2,470,000.00. Following the completion of the acquisition, the insider owned 2,300,000 shares in the company, valued at $7,475,000. The trade was a 49.35% increase in their position. The disclosure for this purchase can be found here. In the last quarter, insiders purchased 813,420 shares of company stock valued at $2,661,362. 1.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Mercer International

A number of institutional investors have recently modified their holdings of MERC. Quantbot Technologies LP grew its position in shares of Mercer International by 943.3% in the first quarter. Quantbot Technologies LP now owns 20,470 shares of the basic materials company’s stock valued at $126,000 after purchasing an additional 18,508 shares during the last quarter. Jump Financial LLC boosted its stake in Mercer International by 340.6% during 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 bought a new stake in Mercer International during the 2nd quarter valued at approximately $244,000. Finally, Gabelli Funds LLC bought a new stake in Mercer International during the 2nd quarter valued at approximately $1,804,000. Institutional investors own 85.79% of the company’s stock.

Mercer International Stock Performance

MERC stock traded up $0.02 during trading on Monday, reaching $3.25. 75,002 shares of the company’s stock were exchanged, compared to its average volume of 570,935. The firm has a market cap of $217.35 million, a PE ratio of -1.99 and a beta of 1.05. The company has a quick ratio of 1.73, a current ratio of 3.10 and a debt-to-equity ratio of 3.42. Mercer International has a 1-year low of $2.59 and a 1-year high of $8.28. The company’s fifty day moving average price is $3.42 and its 200-day moving average price is $4.43.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last released its quarterly earnings results on Thursday, July 31st. The basic materials company reported ($1.29) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.73) by ($0.56). The company had revenue of $453.52 million during the quarter, compared to analyst estimates of $514.46 million. Mercer International had a negative net margin of 5.60% and a negative return on equity of 23.88%. On average, research analysts expect that Mercer International will post -0.29 EPS for the current fiscal year.

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.