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

Shares of Mercer International Inc. (NASDAQ:MERC) (TSE:MRI.U) have been assigned a consensus recommendation of “Strong Sell” from the six analysts that are covering the firm, MarketBeat.com reports. Four analysts have rated the stock with a sell recommendation and two have given a hold recommendation to the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $1.20.

A number of analysts recently commented on MERC shares. Royal Bank Of Canada decreased their target price on Mercer International from $1.00 to $0.75 and set a “sector perform” rating for the company in a research report on Friday, July 17th. Wall Street Zen downgraded Mercer International from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Mercer International in a research report on Wednesday, June 24th. Canadian Imperial Bank of Commerce cut their target price on Mercer International from $1.50 to $1.00 and set a “neutral” rating on the stock in a report on Tuesday, July 21st. Finally, TD reiterated a “sell” rating on shares of Mercer International in a report on Tuesday, July 14th.

Mercer International Stock Performance

Shares of MERC stock opened at $0.60 on Thursday. The firm has a 50 day moving average of $0.78 and a 200-day moving average of $1.31. The company has a market cap of $40.52 million, a price-to-earnings ratio of -0.08 and a beta of 0.52. 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 has a 52 week low of $0.53 and a 52 week high of $4.31.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last issued its earnings results on Thursday, May 7th. The basic materials company reported ($0.78) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.74) by ($0.04). Mercer International had a negative return on equity of 136.20% and a negative net margin of 28.51%.The company had revenue of $489.30 million for the quarter, compared to the consensus estimate of $493.00 million. On average, equities analysts forecast that Mercer International will post -3.1 earnings per share for the current year.

Insiders Place Their Bets

In other Mercer International news, major shareholder Peter R. Kellogg acquired 380,000 shares of the company’s stock in a transaction on Monday, May 18th. The shares were purchased at an average cost 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 ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders have acquired a total of 1,383,743 shares of company stock worth $1,264,565 in the last 90 days. Corporate insiders own 1.20% of the company’s stock.

Hedge Funds Weigh In On Mercer International

A number of hedge funds have recently added to or reduced their stakes in MERC. Geode Capital Management LLC increased its holdings in Mercer International by 2.7% during the 4th quarter. Geode Capital Management LLC now owns 561,001 shares of the basic materials company’s stock worth $1,111,000 after purchasing an additional 14,603 shares in the last quarter. Millennium Management LLC lifted its holdings in shares of Mercer International by 16.1% in 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 in the last quarter. Gabelli Funds LLC bought a new position in shares of Mercer International in the second quarter valued at approximately $1,804,000. Jump Financial LLC boosted its position in shares of Mercer International by 340.6% during the second quarter. Jump Financial LLC now owns 276,837 shares of the basic materials company’s stock valued at $969,000 after buying an additional 214,008 shares during the last quarter. Finally, Gamco Investors INC. ET AL bought a new stake in Mercer International during the second quarter worth $244,000. Institutional investors and hedge funds 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.