Mercury General (NYSE:MCY) Announces Earnings Results

Mercury General (NYSE:MCY) announced its earnings results on Tuesday. The insurance provider reported $3.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.53 by $0.99, FiscalAI reports. Mercury General had a net margin of 13.68% and a return on equity of 32.94%. The firm had revenue of $1.68 billion for the quarter, compared to analyst estimates of $1.52 billion.

Mercury General Price Performance

Shares of NYSE MCY traded down $0.98 during mid-day trading on Tuesday, hitting $106.28. 470,704 shares of the stock traded hands, compared to its average volume of 268,169. The company has a market cap of $5.89 billion, a PE ratio of 7.01 and a beta of 0.90. Mercury General has a twelve month low of $69.82 and a twelve month high of $113.06. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.44 and a quick ratio of 0.44. The firm has a 50 day simple moving average of $104.71 and a two-hundred day simple moving average of $96.58.

Institutional Trading of Mercury General

Hedge funds have recently made changes to their positions in the company. Park West Asset Management LLC acquired a new stake in shares of Mercury General in the third quarter valued at about $23,953,000. Rubric Capital Management LP lifted its stake in shares of Mercury General by 12.8% in the second quarter. Rubric Capital Management LP now owns 2,054,504 shares of the insurance provider’s stock worth $138,350,000 after acquiring an additional 232,721 shares during the period. Sei Investments Co. boosted its holdings in Mercury General by 2,513.7% in the second quarter. Sei Investments Co. now owns 157,893 shares of the insurance provider’s stock valued at $10,633,000 after acquiring an additional 151,852 shares during the last quarter. Philosophy Capital Management LLC acquired a new stake in Mercury General during the 3rd quarter valued at approximately $11,778,000. Finally, Two Sigma Investments LP raised its holdings in Mercury General by 45.1% during the 3rd quarter. Two Sigma Investments LP now owns 229,994 shares of the insurance provider’s stock worth $19,499,000 after purchasing an additional 71,454 shares during the last quarter. 42.39% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the stock. Zacks Research downgraded shares of Mercury General from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 17th. Weiss Ratings restated a “buy (b)” rating on shares of Mercury General in a research note on Thursday, June 4th. Finally, Wall Street Zen raised Mercury General from a “buy” rating to a “strong-buy” rating in a report on Saturday, July 4th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Mercury General presently has an average rating of “Buy” and a consensus target price of $100.00.

About Mercury General

Mercury General Corporation is a holding company headquartered in Los Angeles, California, that underwrites and markets property and casualty insurance products through its principal subsidiary, Mercury Insurance Company. Established in 1961, the company has built a reputation for offering a broad range of personal and commercial lines, with a focus on automobile coverage. Mercury General operates in key U.S. markets, deploying a mix of independent agents and direct distribution channels to serve policyholders.

The company’s product portfolio includes personal automobile insurance, homeowners and renters policies, as well as commercial automobile, business liability and umbrella insurance.