Mercer International Inc. (NASDAQ:MERC) to Issue Quarterly Dividend of $0.08

Mercer International Inc. (NASDAQ:MERC) (TSE:MRI.U) announced a quarterly dividend on Thursday, October 31st, Zacks reports. Investors of record on Wednesday, December 18th will be paid a dividend of 0.075 per share by the basic materials company on Thursday, December 26th. This represents a $0.30 dividend on an annualized basis and a dividend yield of 4.66%. The ex-dividend date is Wednesday, December 18th.

Mercer International has decreased its dividend by an average of 3.4% annually over the last three years. Mercer International has a payout ratio of -375.0% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Mercer International to earn ($0.07) per share next year, which means the company may not be able to cover its $0.30 annual dividend with an expected future payout ratio of -428.6%.

Mercer International Stock Down 1.2 %

MERC stock traded down $0.08 during mid-day trading on Friday, hitting $6.44. 672,553 shares of the company were exchanged, compared to its average volume of 358,226. The company has a debt-to-equity ratio of 3.22, a quick ratio of 2.17 and a current ratio of 3.46. The firm has a market cap of $430.65 million, a P/E ratio of -2.28 and a beta of 1.34. The firm’s 50 day simple moving average is $6.48 and its 200 day simple moving average is $7.90. Mercer International has a 1-year low of $5.33 and a 1-year high of $11.20.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last posted its quarterly earnings data on Thursday, October 31st. The basic materials company reported ($0.26) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.29) by $0.03. Mercer International had a negative net margin of 9.90% and a negative return on equity of 17.93%. The company had revenue of $502.14 million for the quarter, compared to the consensus estimate of $485.84 million. During the same period last year, the company earned ($0.39) earnings per share. The firm’s revenue was up 6.7% compared to the same quarter last year. On average, sell-side analysts predict that Mercer International will post -1.78 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Estrada Juan Carlos Bueno bought 7,800 shares of the stock in a transaction dated Friday, September 13th. The shares were bought at an average cost of $6.60 per share, with a total value of $51,480.00. Following the completion of the transaction, the chief executive officer now directly owns 67,615 shares of the company’s stock, valued at $446,259. This trade represents a 0.00 % increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In related news, VP Wolfgang Beck acquired 18,500 shares of the company’s stock in a transaction that occurred on Tuesday, September 3rd. The shares were acquired at an average price of $6.02 per share, with a total value of $111,370.00. Following the acquisition, the vice president now owns 26,263 shares of the company’s stock, valued at approximately $158,103.26. This trade represents a 200.00 % increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Estrada Juan Carlos Bueno acquired 7,800 shares of the company’s stock in a transaction that occurred on Friday, September 13th. The shares were bought at an average cost of $6.60 per share, for a total transaction of $51,480.00. Following the acquisition, the chief executive officer now directly owns 67,615 shares in the company, valued at $446,259. This represents a 0.00 % increase in their position. The disclosure for this purchase can be found here. In the last three months, insiders have acquired 41,300 shares of company stock worth $252,650. Corporate insiders own 4.20% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on MERC shares. CIBC reduced their price objective on shares of Mercer International from $10.00 to $8.50 and set a “neutral” rating for the company in a research report on Tuesday, August 13th. Royal Bank of Canada lowered their target price on Mercer International from $10.00 to $8.00 and set a “sector perform” rating for the company in a research note on Monday, August 12th. Finally, StockNews.com raised Mercer International from a “sell” rating to a “hold” rating in a research note on Friday, October 18th. Five research analysts have rated the stock with a hold rating, According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $9.38.

Mercer International Company Profile

Mercer International Inc, together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) and northern bleached hardwood kraft (NBHK) pulp worldwide. The company operates through two segments, Pulp and Solid Wood. It manufactures, sells, and distributes pulp, electricity, and chemicals through pulp mills.