Mercer International Inc. (NASDAQ:MERC) Receives Consensus Recommendation of “Reduce” from Brokerages

Shares of Mercer International Inc. (NASDAQ:MERC) (TSE:MRI.U) have been assigned a consensus rating of “Reduce” from the five brokerages that are currently covering the firm, MarketBeat.com reports. One analyst has rated the stock with a sell rating and four have given a hold rating to the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $3.50.

MERC has been the subject of a number of research reports. Weiss Ratings reissued a “sell (e+)” rating on shares of Mercer International in a research note on Monday, December 29th. Royal Bank Of Canada reduced their target price on Mercer International from $3.00 to $2.00 and set a “sector perform” rating on the stock in a report on Monday, November 10th.

Mercer International Stock Performance

NASDAQ:MERC opened at $2.55 on Friday. The company has a quick ratio of 1.68, a current ratio of 3.01 and a debt-to-equity ratio of 4.30. The firm’s fifty day simple moving average is $1.90 and its 200 day simple moving average is $2.70. The stock has a market cap of $170.80 million, a P/E ratio of -0.99 and a beta of 0.69. Mercer International has a twelve month low of $1.48 and a twelve month high of $8.28.

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). The company had revenue of $458.07 million during the quarter, compared to the consensus estimate of $482.70 million. Mercer International had a negative return on equity of 37.38% and a negative net margin of 9.04%. As a group, research analysts predict that Mercer International will post -0.29 EPS for the current year.

Insider Transactions at Mercer International

In other news, major shareholder Peter R. Kellogg acquired 295,000 shares of the stock in a transaction on Wednesday, November 12th. The stock was acquired at an average price of $1.69 per share, with a total value of $498,550.00. Following the completion of the transaction, the insider owned 1,520,000 shares of the company’s stock, valued at $2,568,800. This represents a 24.08% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders acquired a total of 1,007,718 shares of company stock valued at $1,860,644 in the last ninety days. 1.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of MERC. Iat Reinsurance Co. LTD. boosted its stake 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 worth $48,096,000 after acquiring an additional 220,000 shares in the last quarter. Millennium Management LLC lifted its holdings in shares of Mercer International by 16.1% during the third quarter. Millennium Management LLC now owns 994,974 shares of the basic materials company’s stock valued at $2,866,000 after purchasing an additional 137,906 shares during the last quarter. Gabelli Funds LLC bought a new stake in shares of Mercer International in the 2nd quarter worth approximately $1,804,000. Jump Financial LLC grew its stake in shares of Mercer International by 340.6% in the 2nd quarter. Jump Financial LLC now owns 276,837 shares of the basic materials company’s stock worth $969,000 after buying an additional 214,008 shares during the last quarter. Finally, Gamco Investors INC. ET AL bought a new position in Mercer International during the 2nd quarter valued at approximately $244,000. 85.79% of the stock is owned by hedge funds and other institutional investors.

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.