Mercer International (NASDAQ:MERC) Downgraded by Wall Street Zen to Strong Sell

Mercer International (NASDAQ:MERC) (TSE:MRI.U) was downgraded by stock analysts at Wall Street Zen from a “sell” rating to a “strong sell” rating in a research report issued on Saturday.

Several other research analysts have also recently issued reports on the stock. Royal Bank Of Canada decreased their price objective on shares of Mercer International from $1.00 to $0.75 and set a “sector perform” rating for the company in a report on Friday. Weiss Ratings reissued a “sell (e+)” rating on shares of Mercer International in a report on Wednesday, June 24th. Finally, TD reissued a “sell” rating on shares of Mercer International in a report on Tuesday. Two equities research analysts have rated the stock with a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, Mercer International presently has a consensus rating of “Strong Sell” and a consensus price target of $1.80.

Mercer International Stock Performance

Shares of MERC opened at $0.66 on Friday. The firm has a 50-day moving average price of $0.82 and a 200 day moving average price of $1.40. The firm has a market capitalization of $43.99 million, a PE ratio of -0.08 and a beta of 0.52. The company has a quick ratio of 1.22, a current ratio of 2.17 and a debt-to-equity ratio of 23.58. Mercer International has a 52-week low of $0.53 and a 52-week high of $4.47.

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

Insider Transactions at Mercer International

In other Mercer International news, major shareholder Peter R. Kellogg purchased 380,000 shares of the company’s stock in a transaction on Monday, May 18th. The shares were purchased at an average cost of $0.96 per share, for a total transaction of $364,800.00. Following the completion of the transaction, the insider owned 1,852,000 shares in the company, valued at $1,777,920. The trade was a 25.82% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders bought 1,383,743 shares of company stock worth $1,264,565 over the last quarter. 1.00% of the stock is owned by insiders.

Hedge Funds Weigh In On Mercer International

Several hedge funds have recently made changes to their positions in the business. Gamco Investors INC. ET AL bought a new stake in shares of Mercer International in the 2nd quarter worth approximately $244,000. Jump Financial LLC boosted its holdings 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 worth $969,000 after buying an additional 214,008 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Mercer International by 2.7% during the fourth quarter. Geode Capital Management LLC now owns 561,001 shares of the basic materials company’s stock worth $1,111,000 after buying an additional 14,603 shares in the last quarter. Gabelli Funds LLC acquired a new position in Mercer International in the second quarter worth approximately $1,804,000. Finally, Millennium Management LLC grew its position in Mercer International by 16.1% in 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 during the last quarter. Institutional investors and hedge funds 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.