Mercer International (NASDAQ:MERC) Rating Lowered to “Sell” at TD Securities

Mercer International (NASDAQ:MERC) (TSE:MRI.U) was downgraded by investment analysts at TD Securities from a “hold” rating to a “sell” rating in a research note issued on Wednesday, MarketBeat Ratings reports. They presently have a $2.25 price target on the basic materials company’s stock, up from their previous price target of $2.00. TD Securities’ target price would indicate a potential downside of 8.16% from the stock’s previous close.

Several other brokerages have also recently commented on MERC. 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 research note on Monday, November 10th. TD Cowen downgraded Mercer International from a “hold” rating to a “sell” rating and raised their price target for the company from $2.00 to $2.25 in a research report on Wednesday. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Mercer International in a research note on Monday, December 29th. Three analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, Mercer International presently has a consensus rating of “Reduce” and an average price target of $3.10.

Mercer International Stock Performance

MERC opened at $2.45 on Wednesday. The business’s 50 day moving average is $2.05 and its 200-day moving average is $2.65. 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 $164.10 million, a PE ratio of -0.95 and a beta of 0.69. Mercer International has a twelve month low of $1.48 and a twelve month high of $8.28.

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

Insider Buying and Selling

In other news, major shareholder Peter R. Kellogg purchased 295,000 shares of the company’s stock in a transaction on Wednesday, November 12th. The shares were purchased at an average cost of $1.69 per share, with a total value of $498,550.00. Following the completion of the transaction, the insider owned 1,520,000 shares of the company’s stock, valued at $2,568,800. The trade was a 24.08% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders purchased 1,007,718 shares of company stock worth $1,860,644 over the last ninety days. 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 added to or reduced their stakes in the stock. Millennium Management LLC grew its stake 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 valued at $2,866,000 after purchasing an additional 137,906 shares during the period. Iat Reinsurance Co. LTD. lifted its stake 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 worth $48,096,000 after purchasing an additional 220,000 shares in the last quarter. Gabelli Funds LLC purchased a new stake in shares of Mercer International in the second quarter worth $1,804,000. Gamco Investors INC. ET AL bought a new stake in shares of Mercer International during the 2nd quarter valued at about $244,000. Finally, Jump Financial LLC lifted its position in Mercer International by 340.6% during the second quarter. Jump Financial LLC now owns 276,837 shares of the basic materials company’s stock valued at $969,000 after purchasing an additional 214,008 shares during the last quarter. 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.