Mercer International Inc. (NASDAQ:MERC) Given Consensus Rating of “Strong Sell” by Brokerages

Shares of Mercer International Inc. (NASDAQ:MERC) (TSE:MRI.U) have earned a consensus recommendation of “Strong Sell” from the six analysts that are covering the company, MarketBeat Ratings reports. Four research analysts have rated the stock with a sell recommendation and two have issued a hold recommendation on the company. The average 12-month price objective among brokers that have covered the stock in the last year is $1.85.

Several research analysts have weighed in on MERC shares. Weiss Ratings restated a “sell (e+)” rating on shares of Mercer International in a research report on Wednesday, June 24th. TD reduced their target price on shares of Mercer International from $1.00 to $0.50 and set a “sell” rating on the stock in a report on Monday, May 11th. Royal Bank Of Canada decreased their price target on shares of Mercer International from $1.25 to $1.00 and set a “sector perform” rating on the stock in a research note on Monday, May 11th. Finally, Wall Street Zen upgraded shares of Mercer International from a “strong sell” rating to a “sell” rating in a report on Saturday, June 20th.

Mercer International Stock Performance

Shares of Mercer International stock opened at $0.60 on Friday. The firm’s fifty day simple moving average is $0.87 and its 200-day simple moving average is $1.46. The stock has a market capitalization of $40.29 million, a price-to-earnings ratio of -0.08 and a beta of 0.52. Mercer International has a 12 month low of $0.58 and a 12 month high of $4.47. The company has a debt-to-equity ratio of 23.58, a current ratio of 2.17 and a quick ratio of 1.22.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last released its quarterly earnings results on Thursday, May 7th. The basic materials company reported ($0.78) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.74) by ($0.04). The company had revenue of $489.30 million for the quarter, compared to analysts’ expectations of $493.00 million. Mercer International had a negative return on equity of 136.20% and a negative net margin of 28.51%. As a group, equities analysts forecast that Mercer International will post -2.21 earnings per share for the current year.

Insider Activity

In related news, major shareholder Peter R. Kellogg bought 51,441 shares of the stock in a transaction that occurred on Friday, June 12th. The stock was purchased at an average cost of $0.92 per share, for a total transaction of $47,325.72. Following the completion of the acquisition, the insider owned 1,385,672 shares in the company, valued at $1,274,818.24. This trade represents a 3.86% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders have purchased 1,383,743 shares of company stock valued at $1,264,565 over the last 90 days. 1.00% of the stock is currently owned by company insiders.

Institutional Trading of Mercer International

A number of hedge funds have recently made changes to their positions in the company. Gamco Investors INC. ET AL acquired a new position in shares of Mercer International in the 2nd quarter valued at approximately $244,000. Geode Capital Management LLC boosted its stake in shares of Mercer International by 2.7% during the 4th quarter. Geode Capital Management LLC now owns 561,001 shares of the basic materials company’s stock valued at $1,111,000 after buying an additional 14,603 shares during the last quarter. Gabelli Funds LLC acquired a new stake in shares of Mercer International during the second quarter worth approximately $1,804,000. Millennium Management LLC grew its position in shares of Mercer International by 16.1% during the third quarter. Millennium Management LLC now owns 994,974 shares of the basic materials company’s stock worth $2,866,000 after buying an additional 137,906 shares in the last quarter. Finally, Jump Financial LLC increased its stake in shares of Mercer International by 340.6% in 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. Hedge funds and other 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.