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

Shares of Mercer International Inc. (NASDAQ:MERC) (TSE:MRI.U) have been given an average recommendation of “Strong Sell” by the six analysts that are presently covering the company, MarketBeat reports. Four equities research analysts have rated the stock with a sell rating and two have given a hold rating to the company. The average 12-month price objective among analysts that have updated their coverage on the stock in the last year is $1.85.

Several analysts have recently weighed in on the company. TD cut their price objective on Mercer International from $1.00 to $0.50 and set a “sell” rating for the company in a report on Monday, May 11th. Royal Bank Of Canada reduced 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 report on Monday, May 11th. TD Securities downgraded shares of Mercer International from a “hold” rating to a “strong sell” rating in a report on Wednesday, February 18th. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Mercer International in a report on Friday, March 27th.

Insider Activity

In related news, major shareholder Peter R. Kellogg bought 105,000 shares of Mercer International stock in a transaction dated Tuesday, May 19th. The stock was acquired at an average cost of $0.97 per share, with a total value of $101,850.00. Following the completion of the acquisition, the insider directly owned 1,957,000 shares in the company, valued at approximately $1,898,290. This trade represents a 5.67% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Insiders acquired 1,000,000 shares of company stock worth $932,900 over the last quarter. 1.00% of the stock is owned by insiders.

Institutional Trading of Mercer International

A number of hedge funds have recently bought and sold shares of the company. Gamco Investors INC. ET AL purchased a new position in shares of Mercer International in the second quarter worth approximately $244,000. Jump Financial LLC lifted its position 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 valued at $969,000 after acquiring an additional 214,008 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Mercer International by 2.7% in the 4th quarter. Geode Capital Management LLC now owns 561,001 shares of the basic materials company’s stock valued at $1,111,000 after acquiring an additional 14,603 shares in the last quarter. Gabelli Funds LLC acquired a new position in Mercer International in the 2nd quarter worth approximately $1,804,000. Finally, Millennium Management LLC boosted its stake in 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 purchasing an additional 137,906 shares during the period. 85.79% of the stock is owned by hedge funds and other institutional investors.

Mercer International Price Performance

Mercer International stock opened at $0.90 on Wednesday. Mercer International has a 52 week low of $0.75 and a 52 week high of $4.47. The stock has a market cap of $60.15 million, a price-to-earnings ratio of -0.11 and a beta of 0.47. The company’s 50-day moving average price is $1.04 and its two-hundred day moving average price is $1.61. The company has a current ratio of 2.17, a quick ratio of 1.22 and a debt-to-equity ratio of 23.58.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last posted its quarterly earnings data 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 company had revenue of $489.30 million for 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, analysts expect that Mercer International will post -2.21 EPS for the current fiscal year.

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.