Mercury General (NYSE:MCY) Sees Unusually-High Trading Volume – Still a Buy?

Mercury General Co. (NYSE:MCY) saw unusually-high trading volume on Wednesday . Approximately 117,843 shares changed hands during trading, a decline of 43% from the previous session’s volume of 207,401 shares.The stock last traded at $60.31 and had previously closed at $64.89.

Analyst Ratings Changes

Separately, StockNews.com downgraded shares of Mercury General from a “strong-buy” rating to a “buy” rating in a research note on Thursday, December 26th.

Mercury General Trading Down 7.0 %

The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 0.31. The firm has a market capitalization of $3.34 billion, a price-to-earnings ratio of 5.98 and a beta of 0.87. The company has a fifty day moving average price of $71.90 and a two-hundred day moving average price of $64.51.

Mercury General (NYSE:MCY) last issued its earnings results on Tuesday, October 29th. The insurance provider reported $2.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.15 by $1.39. Mercury General had a return on equity of 18.04% and a net margin of 10.18%. The business had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.37 billion. During the same period last year, the company earned $1.14 EPS. As a group, research analysts forecast that Mercury General Co. will post 6.35 earnings per share for the current fiscal year.

Mercury General Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, December 26th. Stockholders of record on Thursday, December 12th were paid a $0.317 dividend. The ex-dividend date was Thursday, December 12th. This represents a $1.27 annualized dividend and a dividend yield of 2.10%. Mercury General’s dividend payout ratio (DPR) is 12.59%.

Insider Transactions at Mercury General

In other news, VP Heidi C. Sullivan sold 1,076 shares of the business’s stock in a transaction that occurred on Tuesday, December 3rd. The shares were sold at an average price of $77.28, for a total value of $83,153.28. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Insiders own 35.50% of the company’s stock.

Hedge Funds Weigh In On Mercury General

Institutional investors have recently bought and sold shares of the company. Point72 Asset Management L.P. purchased a new position in Mercury General in the third quarter valued at $13,068,000. Assenagon Asset Management S.A. lifted its holdings in shares of Mercury General by 607.5% in the 3rd quarter. Assenagon Asset Management S.A. now owns 214,427 shares of the insurance provider’s stock valued at $13,505,000 after purchasing an additional 184,121 shares during the last quarter. Phase 2 Partners LLC boosted its position in shares of Mercury General by 142.1% in the 3rd quarter. Phase 2 Partners LLC now owns 273,955 shares of the insurance provider’s stock valued at $17,254,000 after purchasing an additional 160,808 shares during the period. Philadelphia Financial Management of San Francisco LLC purchased a new position in Mercury General during the 3rd quarter worth approximately $8,243,000. Finally, Dimensional Fund Advisors LP increased its position in Mercury General by 4.7% during the second quarter. Dimensional Fund Advisors LP now owns 1,999,235 shares of the insurance provider’s stock worth $106,237,000 after buying an additional 88,954 shares during the period. 42.39% of the stock is owned by institutional investors and hedge funds.

About Mercury General

Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. The company also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella insurance products. Its automobile insurance products include collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards; and homeowners insurance products comprise dwelling, liability, personal property, and other coverages.