Mercer International (NASDAQ:MERC) Downgraded by BidaskClub to Sell

Mercer International (NASDAQ:MERC) (TSE:MRI.U) was downgraded by analysts at BidaskClub from a “hold” rating to a “sell” rating in a research note issued to investors on Wednesday, May 22nd, BidAskClub reports.

MERC has been the topic of a number of other reports. TD Securities lifted their target price on shares of Mercer International from $18.00 to $21.00 and gave the stock a “buy” rating in a research note on Monday, May 6th. Royal Bank of Canada lifted their target price on shares of Mercer International from $18.00 to $22.00 and gave the stock an “outperform” rating in a research note on Monday, May 6th. Finally, Raymond James reaffirmed a “strong-buy” rating and set a $23.00 target price on shares of Mercer International in a research note on Friday, May 3rd. Three analysts have rated the stock with a sell rating, two have given a buy rating and one has assigned a strong buy rating to the company. The company has a consensus rating of “Hold” and an average target price of $22.00.

MERC stock traded down $0.05 during midday trading on Wednesday, hitting $15.32. 608,716 shares of the stock traded hands, compared to its average volume of 451,139. Mercer International has a 1-year low of $9.36 and a 1-year high of $19.14. The firm has a market cap of $1.01 billion, a PE ratio of 7.82 and a beta of 1.70. The company has a debt-to-equity ratio of 1.68, a quick ratio of 2.65 and a current ratio of 3.98.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last announced its earnings results on Thursday, May 2nd. The basic materials company reported $0.78 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.72 by $0.06. Mercer International had a net margin of 9.82% and a return on equity of 26.76%. The business had revenue of $484.00 million for the quarter, compared to analyst estimates of $476.87 million. During the same quarter last year, the business earned $0.82 earnings per share. The company’s revenue for the quarter was up 31.6% compared to the same quarter last year. Research analysts predict that Mercer International will post 2.35 earnings per share for the current fiscal year.

Institutional investors and hedge funds have recently made changes to their positions in the business. Bessemer Group Inc. acquired a new stake in shares of Mercer International during the fourth quarter valued at about $28,000. O Shaughnessy Asset Management LLC acquired a new position in shares of Mercer International in the fourth quarter valued at approximately $44,000. American International Group Inc. acquired a new position in shares of Mercer International in the first quarter valued at approximately $69,000. Mason Street Advisors LLC acquired a new position in shares of Mercer International in the first quarter valued at approximately $187,000. Finally, United Services Automobile Association grew its holdings in shares of Mercer International by 24.4% in the fourth quarter. United Services Automobile Association now owns 20,962 shares of the basic materials company’s stock valued at $219,000 after purchasing an additional 4,107 shares in the last quarter. Institutional investors and hedge funds own 78.28% of the company’s stock.

About Mercer International

Mercer International Inc, together with its subsidiaries, manufactures and sells northern bleached softwood Kraft (NBSK) pulp in the United States, Europe, Asia, and internationally. The company operates in two segments, Pulp and Wood Products. It produces NBSK pulp primarily from wood chips and pulp logs; carbon neutral or green energy using carbon-neutral bio-fuels, such as black liquor and wood waste; and tall oil for use as a chemical additive and green energy source.

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