Mercury General Corp. Shares Down 5% on Disappointing Earnings (MCY)
Mercury General Corp. (NYSE:MCY)’s share price dropped 5% on Monday after the company announced weaker than expected quarterly earnings, AmericanBankingNews.com reports. The stock traded as low as $41.70 and last traded at $43.20, with a volume of 272,199 shares trading hands. The stock had previously closed at $45.48.
The company reported $0.33 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.54 by $0.21. The company had revenue of $668.10 million for the quarter, compared to the consensus estimate of $718.30 million. During the same quarter in the prior year, the company posted ($0.17) earnings per share. The company’s quarterly revenue was up 2.0% on a year-over-year basis.
The company also recently announced a quarterly dividend, which is scheduled for Monday, March 31st. Stockholders of record on Monday, March 17th will be paid a dividend of $0.615 per share. This represents a $2.46 annualized dividend and a dividend yield of 5.72%.
Separately, analysts at Zacks upgraded shares of Mercury General Corp. from an “underperform” rating to a “neutral” rating in a research note on Tuesday, December 31st. They now have a $50.80 price target on the stock. Three investment analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. Mercury General Corp. currently has a consensus rating of “Hold” and an average price target of $45.27.
The stock’s 50-day moving average is $47.46 and its 200-day moving average is $47.01. The company has a market cap of $2.362 billion and a price-to-earnings ratio of 31.56.
Mercury General Corporation (NYSE:MCY) is an insurance holding company.
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