Mercer International Inc. (NASDAQ:MERC) Given Average Rating of “Strong Sell” by Brokerages

Shares of Mercer International Inc. (NASDAQ:MERC) (TSE:MRI.U) have been given an average rating of “Strong Sell” by the six research firms that are presently covering the company, Marketbeat Ratings reports. Four research analysts have rated the stock with a sell recommendation and two have issued a hold recommendation on the company. The average 1 year target price among analysts that have covered the stock in the last year is $1.85.

Several analysts recently issued reports on the stock. Royal Bank Of Canada dropped their price objective on shares of Mercer International from $1.25 to $1.00 and set a “sector perform” rating for the company in a research note on Monday, May 11th. Wall Street Zen raised shares of Mercer International from a “strong sell” rating to a “sell” rating in a research note on Saturday, June 20th. Weiss Ratings restated a “sell (e+)” rating on shares of Mercer International in a report on Wednesday, June 24th. Finally, TD dropped their price target on Mercer International from $1.00 to $0.50 and set a “sell” rating for the company in a research report on Monday, May 11th.

Mercer International Price Performance

Mercer International stock opened at $0.78 on Friday. Mercer International has a 52-week low of $0.64 and a 52-week high of $4.47. The firm has a market capitalization of $52.24 million, a price-to-earnings ratio of -0.10 and a beta of 0.52. The company has a fifty day simple moving average of $0.91 and a 200-day simple moving average of $1.50. The company has a quick ratio of 1.22, a current ratio of 2.17 and a debt-to-equity ratio of 23.58.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last issued its earnings results on Thursday, May 7th. The basic materials company reported ($0.78) EPS for the quarter, missing analysts’ consensus estimates of ($0.74) by ($0.04). The business had revenue of $489.30 million during the quarter, compared to analyst estimates of $493.00 million. Mercer International had a negative net margin of 28.51% and a negative return on equity of 136.20%. On average, equities analysts anticipate that Mercer International will post -2.21 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, major shareholder Peter R. Kellogg acquired 380,000 shares of the stock in a transaction on Monday, May 18th. The shares were bought at an average price of $0.96 per share, with a total value of $364,800.00. Following the completion of the purchase, the insider owned 1,852,000 shares of the company’s stock, valued at approximately $1,777,920. This represents a 25.82% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders acquired a total of 1,000,000 shares of company stock worth $932,900 over the last quarter. Insiders own 1.00% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Millennium Management LLC boosted its position 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 valued at $2,866,000 after acquiring an additional 137,906 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of Mercer International by 2.7% in the fourth quarter. Geode Capital Management LLC now owns 561,001 shares of the basic materials company’s stock valued at $1,111,000 after purchasing an additional 14,603 shares during the period. Gabelli Funds LLC acquired a new stake in Mercer International during the second quarter worth about $1,804,000. Jump Financial LLC increased its position in Mercer International by 340.6% during the second quarter. Jump Financial LLC now owns 276,837 shares of the basic materials company’s stock worth $969,000 after purchasing an additional 214,008 shares during the last quarter. Finally, Gamco Investors INC. ET AL purchased a new position in Mercer International during the second quarter worth about $244,000. Hedge funds and other institutional investors own 85.79% of the company’s stock.

About Mercer International

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.