Mercer International (NASDAQ:MERC) Downgraded by TD Securities to Sell

Mercer International (NASDAQ:MERC) (TSE:MRI.U) was downgraded by stock analysts at TD Securities from a “hold” rating to a “sell” rating in a report released on Wednesday,BayStreet.CA reports. They presently have a $2.25 price target on the basic materials company’s stock, up from their previous price target of $2.00. TD Securities’ price target suggests a potential downside of 10.18% from the stock’s previous close.

A number of other research firms have also commented on MERC. Weiss Ratings reiterated a “sell (e+)” rating on shares of Mercer International in a research note on Monday, December 29th. Royal Bank Of Canada lowered their target price on shares of Mercer International from $3.00 to $2.00 and set a “sector perform” rating on the stock in a research note on Monday, November 10th. Finally, TD Cowen downgraded Mercer International from a “hold” rating to a “sell” rating and raised their target price for the stock from $2.00 to $2.25 in a research report on Wednesday. Three investment analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, Mercer International currently has a consensus rating of “Reduce” and a consensus price target of $3.10.

Mercer International Stock Down 1.4%

NASDAQ:MERC traded down $0.04 during mid-day trading on Wednesday, reaching $2.51. The stock had a trading volume of 515,713 shares, compared to its average volume of 715,120. The stock has a market cap of $167.79 million, a P/E ratio of -0.97 and a beta of 0.69. The business’s 50 day moving average is $2.02 and its 200 day moving average is $2.65. The company has a debt-to-equity ratio of 4.30, a current ratio of 3.01 and a quick ratio of 1.68. Mercer International has a fifty-two week low of $1.48 and a fifty-two week high of $8.28.

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 the consensus estimate of ($0.89) by ($0.08). The business had revenue of $458.07 million during the quarter, compared to analyst estimates of $482.70 million. Mercer International had a negative net margin of 9.04% and a negative return on equity of 37.38%. As a group, sell-side analysts predict 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 Mercer International stock in a transaction on Wednesday, November 12th. The shares were purchased at an average cost of $1.69 per share, with a total value of $498,550.00. Following the completion of the purchase, the insider owned 1,520,000 shares in the company, valued at $2,568,800. The trade was a 24.08% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders have purchased 1,007,718 shares of company stock valued at $1,860,644 in the last quarter. Corporate insiders own 1.00% of the company’s stock.

Institutional Trading of Mercer International

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Iat Reinsurance Co. LTD. raised its holdings in Mercer International by 1.3% in the third 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 during the period. Millennium Management LLC grew its holdings in shares of Mercer International by 16.1% during 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 in the last quarter. Gabelli Funds LLC bought a new position in shares of Mercer International during the 2nd quarter worth approximately $1,804,000. Jump Financial LLC increased its stake in Mercer International by 340.6% in the 2nd quarter. Jump Financial LLC now owns 276,837 shares of the basic materials company’s stock valued at $969,000 after buying an additional 214,008 shares during the last quarter. Finally, Gamco Investors INC. ET AL acquired a new stake in shares of Mercer International in the second quarter valued at about $244,000. 85.79% of the stock is owned by institutional investors.

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.