Mercer International (NASDAQ:MERC) Lowered to “Sell” Rating by TD Cowen

Mercer International (NASDAQ:MERC) (TSE:MRI.U) was downgraded by TD Cowen from a “hold” rating to a “sell” rating in a report released on Wednesday,Finviz reports. They presently have a $2.25 price objective on the basic materials company’s stock. TD Cowen’s price target points to a potential downside of 11.42% from the company’s previous close.

A number of other equities analysts have also recently issued reports on MERC. Weiss Ratings reiterated a “sell (e+)” rating on shares of Mercer International in a research note on Monday, December 29th. Royal Bank Of Canada lowered their price objective on shares of Mercer International from $3.00 to $2.00 and set a “sector perform” rating on the stock in a research report on Monday, November 10th. Four investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Mercer International presently has a consensus rating of “Reduce” and an average price target of $3.25.

Mercer International Trading Down 9.0%

Shares of MERC opened at $2.54 on Wednesday. Mercer International has a 1-year low of $1.48 and a 1-year high of $8.28. 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 firm’s 50-day moving average price is $2.02 and its 200-day moving average price is $2.65. The firm has a market capitalization of $170.13 million, a price-to-earnings ratio of -0.98 and a beta of 0.69.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last issued its quarterly earnings data 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 company had revenue of $458.07 million during the quarter, compared to analysts’ expectations of $482.70 million. Sell-side analysts anticipate that Mercer International will post -0.29 EPS for the current year.

Insiders Place Their Bets

In related news, major shareholder Peter R. Kellogg acquired 295,000 shares of the business’s stock in a transaction on Wednesday, November 12th. The stock was acquired at an average cost of $1.69 per share, with a total value of $498,550.00. Following the acquisition, the insider directly owned 1,520,000 shares in the company, valued at $2,568,800. This represents a 24.08% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. In the last ninety days, insiders purchased 1,007,718 shares of company stock valued at $1,860,644. Corporate insiders own 1.00% of the company’s stock.

Hedge Funds Weigh In On Mercer International

Several institutional investors have recently added to or reduced their stakes in MERC. Jump Financial LLC raised its holdings 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 acquiring an additional 214,008 shares in the last quarter. Gamco Investors INC. ET AL purchased a new stake in Mercer International during the second quarter valued at $244,000. Gabelli Funds LLC bought a new position in Mercer International during the second quarter valued at $1,804,000. Iat Reinsurance Co. LTD. lifted its position in Mercer International by 1.3% during 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 purchasing an additional 220,000 shares during the last quarter. Finally, Millennium Management LLC grew its stake in shares of Mercer International by 16.1% in the 3rd 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 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.