Mercer International (NASDAQ:MERC) Share Price Passes Above 200 Day Moving Average – Time to Sell?

Mercer International Inc. (NASDAQ:MERC) (TSE:MRI.U) crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $2.66 and traded as high as $2.85. Mercer International shares last traded at $2.79, with a volume of 451,166 shares changing hands.

Wall Street Analyst Weigh In

MERC has been the topic of several analyst reports. Royal Bank Of Canada cut their target price on shares of Mercer International from $3.00 to $2.00 and set a “sector perform” rating on the stock in a report on Monday, November 10th. Weiss Ratings restated a “sell (e+)” rating on shares of Mercer International in a research note on Monday, December 29th. Four research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Reduce” and an average price target of $3.50.

Mercer International Stock Up 1.8%

The firm has a market cap of $186.87 million, a PE ratio of -1.08 and a beta of 0.69. The company has a current ratio of 3.01, a quick ratio of 1.68 and a debt-to-equity ratio of 4.30. The stock has a fifty day simple moving average of $2.00 and a two-hundred day simple moving average of $2.66.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last posted its quarterly earnings results on Thursday, November 6th. The basic materials company reported ($0.97) EPS for the quarter, missing the consensus estimate of ($0.89) by ($0.08). Mercer International had a negative return on equity of 37.38% and a negative net margin of 9.04%.The business had revenue of $458.07 million for the quarter, compared to analysts’ expectations of $482.70 million. As a group, sell-side analysts expect that Mercer International Inc. will post -0.29 EPS for the current fiscal year.

Insider Buying and Selling

In related news, major shareholder Peter R. Kellogg acquired 225,000 shares of the stock in a transaction dated Thursday, November 13th. The shares were purchased at an average cost of $1.73 per share, with a total value of $389,250.00. Following the transaction, the insider directly owned 1,320,000 shares in the company, valued at approximately $2,283,600. This represents a 20.55% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders have purchased 1,007,718 shares of company stock worth $1,860,644 over the last three months. 1.00% of the stock is currently owned by corporate insiders.

Institutional Trading of Mercer International

A number of large investors have recently modified their holdings of the company. Gamco Investors INC. ET AL acquired a new stake in Mercer International in the second quarter worth about $244,000. Jump Financial LLC raised its position in shares of Mercer International by 340.6% in the second quarter. Jump Financial LLC now owns 276,837 shares of the basic materials company’s stock valued at $969,000 after buying an additional 214,008 shares during the last quarter. Gabelli Funds LLC acquired a new position in shares of Mercer International during the 2nd quarter valued at about $1,804,000. Millennium Management LLC grew its holdings in shares of Mercer International by 16.1% during the 3rd quarter. Millennium Management LLC now owns 994,974 shares of the basic materials company’s stock worth $2,866,000 after purchasing an additional 137,906 shares during the period. Finally, Iat Reinsurance Co. LTD. grew its stake in shares of Mercer International by 1.3% in the third quarter. Iat Reinsurance Co. LTD. now owns 16,700,000 shares of the basic materials company’s stock valued at $48,096,000 after buying an additional 220,000 shares in the last quarter. Hedge funds and other institutional investors own 85.79% of the company’s stock.

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.