Mercer International Inc. (NASDAQ:MERC) Given Consensus Recommendation of “Reduce” by Brokerages

Shares of Mercer International Inc. (NASDAQ:MERC) (TSE:MRI.U) have earned a consensus recommendation of “Reduce” from the six brokerages that are currently covering the stock, Marketbeat reports. Three equities research analysts have rated the stock with a sell rating and three have assigned a hold rating to the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $3.10.

Several brokerages recently issued reports on MERC. Weiss Ratings reiterated a “sell (e+)” rating on shares of Mercer International in a report on Monday, December 29th. TD Cowen lowered Mercer International from a “hold” rating to a “sell” rating and lifted their price target for the company from $2.00 to $2.25 in a report on Wednesday, January 21st. TD Securities cut Mercer International from a “hold” rating to a “sell” rating and boosted their price target for the company from $2.00 to $2.25 in a research note on Wednesday, January 21st. Finally, Royal Bank Of Canada cut their price objective on shares of Mercer International from $3.00 to $2.00 and set a “sector perform” rating on the stock in a research report on Monday, November 10th.

Mercer International Trading Up 2.7%

Shares of NASDAQ MERC opened at $1.88 on Thursday. The company has a quick ratio of 1.68, a current ratio of 3.01 and a debt-to-equity ratio of 4.30. Mercer International has a 12 month low of $1.48 and a 12 month high of $8.28. The company has a market cap of $125.92 million, a price-to-earnings ratio of -0.73 and a beta of 0.72. The business has a fifty day simple moving average of $2.14 and a 200-day simple moving average of $2.54.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last issued its quarterly earnings results on Thursday, November 6th. The basic materials company reported ($0.97) EPS for the quarter, missing the consensus estimate 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 firm had revenue of $458.07 million during the quarter, compared to analysts’ expectations of $482.70 million. Sell-side analysts predict that Mercer International will post -0.29 EPS for the current year.

Insider Buying and Selling at Mercer International

In other Mercer International news, major shareholder Peter R. Kellogg acquired 295,000 shares of the firm’s stock in a transaction that occurred on Wednesday, November 12th. The stock was purchased at an average cost of $1.69 per share, for a total transaction of $498,550.00. Following the completion of the acquisition, the insider owned 1,520,000 shares of the company’s stock, valued at approximately $2,568,800. This trade represents a 24.08% increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In the last quarter, insiders have acquired 574,000 shares of company stock worth $979,600. 1.00% of the stock is currently owned by company insiders.

Institutional Trading of Mercer International

Institutional investors and hedge funds have recently made changes to their positions in the stock. Jump Financial LLC lifted 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 buying an additional 214,008 shares during the last quarter. Gamco Investors INC. ET AL acquired a new position in Mercer International during the 2nd quarter valued at $244,000. Gabelli Funds LLC bought a new stake in Mercer International in the 2nd quarter valued at $1,804,000. Iat Reinsurance Co. LTD. boosted its holdings in Mercer International by 1.3% in 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. Finally, Millennium Management LLC grew its position 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 last quarter. 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.