Royal Bank of Canada Reaffirms Sector Perform Rating for Mercer International (NASDAQ:MERC)

Mercer International (NASDAQ:MERC) (TSE:MRI.U)‘s stock had its “sector perform” rating reaffirmed by investment analysts at Royal Bank of Canada in a research report issued to clients and investors on Monday, Benzinga reports. They currently have a $7.00 price objective on the basic materials company’s stock. Royal Bank of Canada’s target price suggests a potential upside of 10.41% from the company’s previous close.

A number of other research analysts also recently issued reports on the stock. StockNews.com upgraded shares of Mercer International from a “sell” rating to a “hold” rating in a research report on Friday, October 18th. CIBC decreased their target price on Mercer International from $10.00 to $8.50 and set a “neutral” rating for the company in a research note on Tuesday, August 13th. Five research analysts have rated the stock with a hold rating, Based on data from MarketBeat, Mercer International presently has an average rating of “Hold” and a consensus price target of $9.13.

Mercer International Stock Down 1.6 %

NASDAQ:MERC traded down $0.10 during mid-day trading on Monday, reaching $6.34. The stock had a trading volume of 26,994 shares, compared to its average volume of 356,671. The company has a debt-to-equity ratio of 3.22, a current ratio of 3.46 and a quick ratio of 2.17. The company has a market capitalization of $423.96 million, a price-to-earnings ratio of -2.23 and a beta of 1.35. Mercer International has a 1-year low of $5.33 and a 1-year high of $11.20. The stock’s 50 day simple moving average is $6.48 and its two-hundred day simple moving average is $7.89.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last issued its quarterly earnings results on Thursday, October 31st. The basic materials company reported ($0.26) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.29) by $0.03. Mercer International had a negative return on equity of 17.24% and a negative net margin of 9.33%. The business had revenue of $502.14 million during the quarter, compared to the consensus estimate of $485.84 million. During the same period in the previous year, the business earned ($0.39) EPS. The business’s quarterly revenue was up 6.7% on a year-over-year basis. Equities analysts anticipate that Mercer International will post -1.78 EPS for the current year.

Insider Activity at Mercer International

In other news, VP Wolfgang Beck purchased 18,500 shares of the firm’s stock in a transaction on Tuesday, September 3rd. The stock was purchased at an average cost of $6.02 per share, with a total value of $111,370.00. Following the purchase, the vice president now owns 26,263 shares in the company, valued at $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 this hyperlink. In related news, CEO Estrada Juan Carlos Bueno bought 7,800 shares of the firm’s stock in a transaction that occurred on Friday, September 13th. The shares were acquired 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 of the company’s stock, valued at $446,259. The trade was a 0.00 % increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, VP Wolfgang Beck purchased 18,500 shares of the firm’s stock in a transaction that occurred on Tuesday, September 3rd. The stock was bought at an average price of $6.02 per share, with a total value of $111,370.00. Following the transaction, the vice president now directly owns 26,263 shares in the company, valued at $158,103.26. This trade represents a 200.00 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have purchased 41,300 shares of company stock worth $252,650 over the last quarter. 4.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Russell Investments Group Ltd. purchased a new position in Mercer International during the 1st quarter worth approximately $193,000. Everence Capital Management Inc. acquired a new stake in Mercer International during the 1st quarter worth about $261,000. Finally, SG Americas Securities LLC grew its stake in Mercer International by 26.5% during the 1st quarter. SG Americas Securities LLC now owns 51,201 shares of the basic materials company’s stock valued at $509,000 after acquiring an additional 10,713 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, 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.