Royal Bank Of Canada Has Lowered Expectations for Mercer International (NASDAQ:MERC) Stock Price

Mercer International (NASDAQ:MERC) (TSE:MRI.U) had its price target reduced by equities researchers at Royal Bank Of Canada from $1.00 to $0.75 in a research note issued on Friday,Benzinga reports. The brokerage currently has a “sector perform” rating on the basic materials company’s stock. Royal Bank Of Canada’s price target would indicate a potential upside of 14.19% from the company’s previous close.

A number of other research firms have also recently issued reports on MERC. TD restated a “sell” rating on shares of Mercer International in a research report on Tuesday, July 14th. Wall Street Zen upgraded shares of Mercer International from a “strong sell” rating to a “sell” rating in a report on Saturday, June 20th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Mercer International in a research note on Wednesday, June 24th. Two investment analysts have rated the stock with a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Strong Sell” and an average target price of $1.80.

Mercer International Stock Down 1.9%

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

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last issued 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). The firm had revenue of $489.30 million during 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%. Equities research analysts forecast that Mercer International will post -2.21 EPS for the current year.

Insider Buying and Selling

In related news, major shareholder Peter R. Kellogg purchased 51,441 shares of the business’s stock in a transaction that occurred on Friday, June 12th. The shares were acquired at an average price of $0.92 per share, for a total transaction of $47,325.72. Following the completion of the acquisition, the insider directly owned 1,385,672 shares in the company, valued at approximately $1,274,818.24. The trade was a 3.86% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders acquired a total of 1,383,743 shares of company stock valued at $1,264,565 over the last ninety days. Company insiders own 1.00% of the company’s stock.

Institutional Investors Weigh In On Mercer International

Institutional investors and hedge funds have recently modified their holdings of the stock. Gamco Investors INC. ET AL bought a new stake in shares of Mercer International during the 2nd 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. Geode Capital Management LLC lifted its holdings in Mercer International by 2.7% in 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 during the period. Gabelli Funds LLC purchased a new stake in Mercer International in the second quarter worth about $1,804,000. Finally, Millennium Management LLC boosted its position in Mercer International by 16.1% during the 3rd quarter. Millennium Management LLC now owns 994,974 shares of the basic materials company’s stock valued at $2,866,000 after acquiring an additional 137,906 shares in the last quarter. 85.79% of the stock is owned by hedge funds and other institutional investors.

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.