Mercer International (NASDAQ:MERC) Cut to Sell at TD Cowen

Mercer International (NASDAQ:MERC) (TSE:MRI.U) was downgraded by equities researchers at TD Cowen from a “hold” rating to a “sell” rating in a note issued to investors on Wednesday,Finviz reports. They presently have a $2.25 target price on the basic materials company’s stock. TD Cowen’s price target points to a potential downside of 11.42% from the company’s previous close.

MERC has been the subject of several other reports. Royal Bank Of Canada lowered their price target on Mercer International from $3.00 to $2.00 and set a “sector perform” rating for the company in a report on Monday, November 10th. Weiss Ratings reissued a “sell (e+)” rating on shares of Mercer International in a research report on Monday, December 29th. Four equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, Mercer International has an average rating of “Reduce” and a consensus target price of $3.25.

Mercer International Price Performance

NASDAQ MERC opened at $2.54 on Wednesday. Mercer International has a 52 week low of $1.48 and a 52 week high of $8.28. The company has a current ratio of 3.01, a quick ratio of 1.68 and a debt-to-equity ratio of 4.30. The stock has a market cap of $170.13 million, a price-to-earnings ratio of -0.98 and a beta of 0.69. The company has a 50-day moving average price of $2.02 and a two-hundred day moving average price of $2.65.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last announced its quarterly earnings data on Thursday, November 6th. The basic materials company reported ($0.97) EPS for the quarter, missing analysts’ consensus estimates of ($0.89) by ($0.08). Mercer International had a negative net margin of 9.04% and a negative return on equity of 37.38%. The company had revenue of $458.07 million for the quarter, compared to analysts’ expectations of $482.70 million. Analysts forecast that Mercer International will post -0.29 EPS for the current year.

Insider Activity at Mercer International

In related news, major shareholder Peter R. Kellogg bought 225,000 shares of Mercer International stock in a transaction on Thursday, November 13th. The stock was acquired at an average price of $1.73 per share, with a total value of $389,250.00. Following the acquisition, the insider directly owned 1,320,000 shares of the company’s stock, valued at $2,283,600. This represents a 20.55% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. In the last 90 days, insiders have purchased 1,007,718 shares of company stock worth $1,860,644. Corporate insiders own 1.00% of the company’s stock.

Hedge Funds Weigh In On Mercer International

Several institutional investors and hedge funds have recently made changes to their positions in the business. Gamco Investors INC. ET AL purchased a new stake in Mercer International during the 2nd quarter valued at $244,000. Jump Financial LLC boosted its holdings 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 worth $969,000 after purchasing an additional 214,008 shares during the period. Gabelli Funds LLC purchased a new stake in shares of Mercer International during the second quarter worth about $1,804,000. Millennium Management LLC grew its stake 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 worth $2,866,000 after purchasing an additional 137,906 shares during the last quarter. Finally, Iat Reinsurance Co. LTD. increased its holdings in Mercer International by 1.3% during the 3rd quarter. Iat Reinsurance Co. LTD. now owns 16,700,000 shares of the basic materials company’s stock valued at $48,096,000 after purchasing an additional 220,000 shares during the period. 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.