StockNews.com Downgrades Mercury General (NYSE:MCY) to Buy

StockNews.com downgraded shares of Mercury General (NYSE:MCY) from a strong-buy rating to a buy rating in a research report released on Friday.

Mercury General Price Performance

Shares of NYSE:MCY opened at $53.10 on Friday. The firm’s 50 day simple moving average is $50.46 and its two-hundred day simple moving average is $42.11. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.30 and a quick ratio of 0.30. The company has a market capitalization of $2.94 billion, a P/E ratio of 30.52 and a beta of 0.80. Mercury General has a 1-year low of $26.15 and a 1-year high of $57.12.

Mercury General (NYSE:MCY) last issued its quarterly earnings results on Tuesday, February 13th. The insurance provider reported $1.15 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.05 by $1.10. The business had revenue of $1.21 billion during the quarter, compared to analyst estimates of $1.16 billion. Mercury General had a return on equity of 1.17% and a net margin of 2.08%. Research analysts expect that Mercury General will post 2.9 EPS for the current fiscal year.

Mercury General Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, March 27th. Stockholders of record on Wednesday, March 13th were issued a $0.317 dividend. This represents a $1.27 annualized dividend and a dividend yield of 2.39%. The ex-dividend date of this dividend was Tuesday, March 12th. Mercury General’s dividend payout ratio (DPR) is presently 72.99%.

Institutional Trading of Mercury General

Institutional investors and hedge funds have recently bought and sold shares of the stock. Larson Financial Group LLC bought a new stake in shares of Mercury General in the third quarter worth about $25,000. Gradient Investments LLC purchased a new position in shares of Mercury General in the third quarter valued at $38,000. Global Retirement Partners LLC increased its position in Mercury General by 5,212.5% in the fourth quarter. Global Retirement Partners LLC now owns 1,700 shares of the insurance provider’s stock worth $67,000 after purchasing an additional 1,668 shares during the last quarter. Counterpoint Mutual Funds LLC purchased a new stake in Mercury General during the third quarter valued at $86,000. Finally, Cornerstone Investment Partners LLC purchased a new position in shares of Mercury General in the 1st quarter worth $205,000. 42.39% of the stock is currently owned by institutional investors.

About Mercury General

Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. The company also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella insurance products. Its automobile insurance products include collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards; and homeowners insurance products comprise dwelling, liability, personal property, and other coverages.