Mercury General (NYSE:MCY) Hits New 52-Week High – Should You Buy?

Shares of Mercury General Corporation (NYSE:MCY) hit a new 52-week high on Monday . The stock traded as high as $111.46 and last traded at $111.5260, with a volume of 306546 shares changing hands. The stock had previously closed at $110.48.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on MCY shares. Wall Street Zen raised shares of Mercury General from a “buy” rating to a “strong-buy” rating in a research note on Saturday. Weiss Ratings reissued a “buy (b)” rating on shares of Mercury General in a report on Thursday, June 4th. Finally, Zacks Research upgraded shares of Mercury General from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 26th. Two equities research analysts have rated the stock with a Strong Buy rating and one has given a Buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Strong Buy” and an average price target of $100.00.

Mercury General Trading Up 0.8%

The company has a current ratio of 0.44, a quick ratio of 0.44 and a debt-to-equity ratio of 0.22. The company has a market cap of $6.17 billion, a PE ratio of 7.35 and a beta of 0.89. The company has a fifty day simple moving average of $101.06 and a two-hundred day simple moving average of $94.32.

Mercury General (NYSE:MCY) last announced its quarterly earnings data on Tuesday, May 5th. The insurance provider reported $3.50 EPS for the quarter, beating analysts’ consensus estimates of $2.15 by $1.35. The company had revenue of $1.54 billion for the quarter, compared to the consensus estimate of $1.46 billion. Mercury General had a net margin of 13.68% and a return on equity of 32.94%. Analysts anticipate that Mercury General Corporation will post 11.38 EPS for the current year.

Mercury General Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Stockholders of record on Thursday, June 11th were given a dividend of $0.3175 per share. The ex-dividend date was Thursday, June 11th. This represents a $1.27 dividend on an annualized basis and a dividend yield of 1.1%. Mercury General’s dividend payout ratio (DPR) is 8.37%.

Institutional Trading of Mercury General

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Financial Management Professionals Inc. acquired a new stake in shares of Mercury General in the 4th quarter worth $25,000. Hilton Head Capital Partners LLC acquired a new stake in Mercury General in the fourth quarter valued at about $38,000. Mcguire Capital Advisors Inc. purchased a new stake in Mercury General in the 4th quarter valued at approximately $40,000. IFP Advisors Inc boosted its holdings in Mercury General by 79.4% in the 4th quarter. IFP Advisors Inc now owns 506 shares of the insurance provider’s stock valued at $48,000 after purchasing an additional 224 shares in the last quarter. Finally, GAMMA Investing LLC increased its position in Mercury General by 19.2% during the 4th quarter. GAMMA Investing LLC now owns 752 shares of the insurance provider’s stock worth $71,000 after purchasing an additional 121 shares during the period. 42.39% of the stock is owned by hedge funds and other institutional investors.

Mercury General Company Profile

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.