Mercer International (NASDAQ:MERC) Cut to Sell at TD Cowen

TD Cowen lowered shares of Mercer International (NASDAQ:MERC) (TSE:MRI.U) from a hold rating to a sell rating in a research report sent to investors on Wednesday morning, MarketBeat.com reports. They currently have $2.25 price objective on the basic materials company’s stock, up from their prior price objective of $2.00.

A number of other equities analysts have also weighed in on the company. Weiss Ratings reiterated a “sell (e+)” rating on shares of Mercer International in a research report on Monday, December 29th. Royal Bank Of Canada dropped their target price on Mercer International from $3.00 to $2.00 and set a “sector perform” rating on the stock in a research report on Monday, November 10th. Three equities research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Reduce” and an average target price of $3.10.

Mercer International Price Performance

Shares of NASDAQ MERC opened at $2.46 on Wednesday. The business has a 50 day simple moving average of $2.07 and a 200-day simple moving average of $2.64. The company has a current ratio of 3.01, a quick ratio of 1.68 and a debt-to-equity ratio of 4.30. Mercer International has a twelve month low of $1.48 and a twelve month high of $8.28. The company has a market capitalization of $164.77 million, a price-to-earnings ratio of -0.95 and a beta of 0.69.

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

Insiders Place Their Bets

In other Mercer International news, major shareholder Peter R. Kellogg acquired 295,000 shares of the company’s stock in a transaction that occurred on Wednesday, November 12th. The shares were acquired at an average price of $1.69 per share, with a total value of $498,550.00. Following the purchase, the insider owned 1,520,000 shares of the company’s stock, valued at $2,568,800. This represents a 24.08% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Over the last 90 days, insiders have purchased 1,007,718 shares of company stock worth $1,860,644. 1.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. Gamco Investors INC. ET AL bought a new position in shares of Mercer International during the second quarter valued at about $244,000. Jump Financial LLC raised its stake in 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 in the last quarter. Gabelli Funds LLC bought a new stake in shares of Mercer International during the second quarter valued at approximately $1,804,000. Millennium Management LLC grew its position in shares of Mercer International by 16.1% in the 3rd 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 during the period. Finally, Iat Reinsurance Co. LTD. boosted its position in shares of 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. Institutional investors and hedge funds own 85.79% of the company’s stock.

Mercer International Company Profile

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.