Mercury General (NYSE:MCY) Sets New 1-Year High on Better-Than-Expected Earnings

Mercury General Corporation (NYSE:MCY) shares reached a new 52-week high during trading on Tuesday following a better than expected earnings announcement. The company traded as high as $96.68 and last traded at $96.2090, with a volume of 88548 shares. The stock had previously closed at $93.47.

The insurance provider reported $3.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.56 by $1.10. The business had revenue of $1.54 billion during the quarter, compared to the consensus estimate of $1.37 billion. Mercury General had a return on equity of 21.80% and a net margin of 9.03%.

Mercury General Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 26th. Shareholders of record on Thursday, March 12th will be issued a $0.3175 dividend. The ex-dividend date of this dividend is Thursday, March 12th. This represents a $1.27 dividend on an annualized basis and a yield of 1.5%. Mercury General’s dividend payout ratio (DPR) is 16.02%.

Trending Headlines about Mercury General

Here are the key news stories impacting Mercury General this week:

• Positive Sentiment: Fourth-quarter beat — Mercury reported EPS of $3.66 vs. consensus $2.56 and revenue of $1.54B vs. $1.37B, driving a sizable quarterly profit increase. Mercury General Q4 Earnings Beat on Strong Premium Growth
• Positive Sentiment: Top-line and premium momentum — Net premiums earned and written rose year-over-year (net premiums earned +6.9% q/q; net premiums written +8.6%), supporting revenue growth and underwriting scale. PR Newswire: Fourth-Quarter and Fiscal 2025 Results
• Positive Sentiment: Improving loss and investment mix — Combined ratio improved to 88.6% (from 91.4%), catastrophe losses fell sharply, and net investment/realized gains swung positive vs. prior-year losses, boosting operating income. PR Newswire: Fourth-Quarter and Fiscal 2025 Results
• Positive Sentiment: Dividend declared — Board approved a quarterly cash dividend of $0.3175 per share (annualized yield ~1.5%), which supports shareholder income and signals confidence in the payout. PR Newswire: Dividend Announcement
• Neutral Sentiment: Consumer PR activity — Company issued homeowner maintenance guidance as part of consumer outreach; useful for brand/retention but unlikely to move near-term financials. PR Newswire: Home Maintenance Advisory
• Negative Sentiment: Market reaction and forward uncertainty — Despite the beat, shares are trading down amid heavy volume, suggesting profit-taking or skepticism on sustainability; some analyst commentary points to cautious FY estimates for the year ahead. Zacks: Q4 Beats and Market Context

Analyst Ratings Changes

MCY has been the subject of a number of research analyst reports. Weiss Ratings reiterated a “buy (b-)” rating on shares of Mercury General in a report on Thursday, January 22nd. Zacks Research cut shares of Mercury General from a “strong-buy” rating to a “hold” rating in a report on Friday, January 9th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average target price of $100.00.

Hedge Funds Weigh In On Mercury General

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Financial Management Professionals Inc. acquired a new stake in shares of Mercury General in the fourth quarter valued at approximately $25,000. Aster Capital Management DIFC Ltd purchased a new stake in Mercury General in the 3rd quarter valued at approximately $34,000. Jones Financial Companies Lllp grew its holdings in Mercury General by 236.0% during the 3rd quarter. Jones Financial Companies Lllp now owns 457 shares of the insurance provider’s stock valued at $38,000 after buying an additional 321 shares during the last quarter. Hilton Head Capital Partners LLC purchased a new position in Mercury General during the fourth quarter worth $38,000. Finally, Caitlin John LLC acquired a new position in shares of Mercury General in the third quarter worth $41,000. Institutional investors and hedge funds own 42.39% of the company’s stock.

Mercury General Stock Performance

The company has a quick ratio of 0.45, a current ratio of 0.45 and a debt-to-equity ratio of 0.26. The stock has a fifty day moving average price of $91.40 and a two-hundred day moving average price of $84.89. The company has a market capitalization of $4.85 billion, a price-to-earnings ratio of 8.96 and a beta of 0.94.

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.