Mercury General (NYSE:MCY) Hits New 12-Month High After Better-Than-Expected Earnings

Mercury General Corporation (NYSE:MCY)’s stock price hit a new 52-week high during trading on Tuesday following a better than expected earnings announcement. The company traded as high as $96.68 and last traded at $96.2090, with a volume of 88548 shares traded. The stock had previously closed at $93.47.

The insurance provider reported $3.66 EPS for the quarter, beating the consensus estimate of $2.56 by $1.10. Mercury General had a return on equity of 19.53% and a net margin of 7.55%.The business had revenue of $1.54 billion during the quarter, compared to analysts’ expectations of $1.37 billion.

Trending Headlines about Mercury General

Here are the key news stories impacting Mercury General this week:

• Positive Sentiment: Q4 earnings and revenue beat — Mercury reported GAAP net income per diluted share of $3.66 vs. the Zacks/consensus $2.56 estimate and revenue of $1.54B vs. $1.37B expected; the beat is driving optimism on near‑term profitability. Mercury General (MCY) Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Underwriting and profitability improved — Q4 combined ratio fell to 88.6% (better than prior), operating income per diluted share rose to $3.66, and annual return on equity was strong (~19.5%), supporting valuation expansion. View Press Release
• Positive Sentiment: Dividend declared — Management announced a quarterly dividend alongside results, which can support investor demand for the stock. Mercury General Corporation Announces Fourth Quarter and Fiscal 2025 Results and Declares Quarterly Dividend
• Neutral Sentiment: Pre-earnings coverage and valuation checks — Analysts and outlets ran previews/valuation pieces ahead of the print; these framed expectations but contained no new company-guidance surprises. Mercury General (MCY) Valuation Check As Investors Position Ahead Of Quarterly Earnings
• Neutral Sentiment: Corporate PR: homeowner maintenance advisory — A customer‑facing press release on winter maintenance is marketing/brand activity and unlikely to move the stock materially. Skipping Late-Winter Home Maintenance Can Cost Homeowners Thousands, Mercury Insurance Warns
• Negative Sentiment: Annual catastrophe losses remain elevated — Fiscal 2025 catastrophe losses rose to $508M (vs. $277M prior year), a meaningful increase that can pressure underwriting results in future periods. Mercury General Corporation Announces Fourth Quarter and Fiscal 2025 Results and Declares Quarterly Dividend
• Negative Sentiment: Higher ceded/reinsurance costs — The company recorded increased ceded premiums tied to reinstatement premiums for exhausted reinsurance layers (following prior wildfires), which reduces net premiums retained and may depress margin if reinsurance pricing remains elevated. Mercury General Corporation Announces Fourth Quarter and Fiscal 2025 Results and Declares Quarterly Dividend

Analyst Ratings Changes

A number of research firms have recently weighed in on MCY. Zacks Research cut shares of Mercury General from a “strong-buy” rating to a “hold” rating in a research note on Friday, January 9th. Weiss Ratings reissued a “buy (b-)” rating on shares of Mercury General in a report on Thursday, January 22nd. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Mercury General has a consensus rating of “Buy” and an average price target of $100.00.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Allworth Financial LP grew its stake in Mercury General by 18.6% in the 3rd quarter. Allworth Financial LP now owns 753 shares of the insurance provider’s stock valued at $64,000 after acquiring an additional 118 shares during the last quarter. GAMMA Investing LLC lifted its holdings in shares of Mercury General by 19.2% in the fourth quarter. GAMMA Investing LLC now owns 752 shares of the insurance provider’s stock valued at $71,000 after purchasing an additional 121 shares in the last quarter. Merit Financial Group LLC grew its position in shares of Mercury General by 3.7% in the third quarter. Merit Financial Group LLC now owns 3,534 shares of the insurance provider’s stock valued at $300,000 after purchasing an additional 127 shares during the last quarter. Amalgamated Bank increased its stake in shares of Mercury General by 1.9% during the 3rd quarter. Amalgamated Bank now owns 7,726 shares of the insurance provider’s stock worth $655,000 after purchasing an additional 141 shares in the last quarter. Finally, Franklin Resources Inc. raised its position in shares of Mercury General by 3.0% during the 2nd quarter. Franklin Resources Inc. now owns 5,233 shares of the insurance provider’s stock worth $352,000 after purchasing an additional 154 shares during the last quarter. Institutional investors and hedge funds own 42.39% of the company’s stock.

Mercury General Price Performance

The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.45 and a current ratio of 0.45. The company has a 50-day moving average of $91.46 and a 200-day moving average of $84.87. The stock has a market capitalization of $5.33 billion, a price-to-earnings ratio of 12.15 and a beta of 0.94.

Mercury General Company Profile

Mercury General Corporation is a holding company headquartered in Los Angeles, California, that underwrites and markets property and casualty insurance products through its principal subsidiary, Mercury Insurance Company. Established in 1961, the company has built a reputation for offering a broad range of personal and commercial lines, with a focus on automobile coverage. Mercury General operates in key U.S. markets, deploying a mix of independent agents and direct distribution channels to serve policyholders.

The company’s product portfolio includes personal automobile insurance, homeowners and renters policies, as well as commercial automobile, business liability and umbrella insurance.