TD Securities Downgrades Mercer International (NASDAQ:MERC) to Sell

Mercer International (NASDAQ:MERC) (TSE:MRI.U) was downgraded by equities researchers at TD Securities from a “hold” rating to a “sell” rating in a note issued to investors on Wednesday,BayStreet.CA reports. They currently have a $2.25 price objective on the basic materials company’s stock, up from their prior price objective of $2.00. TD Securities’ target price points to a potential downside of 10.18% from the stock’s previous close.

Other equities research analysts also recently issued reports about the stock. Royal Bank Of Canada decreased their price objective on shares of Mercer International from $3.00 to $2.00 and set a “sector perform” rating for the company in a research note on Monday, November 10th. Weiss Ratings restated a “sell (e+)” rating on shares of Mercer International in a research note on Monday, December 29th. Finally, TD Cowen downgraded Mercer International from a “hold” rating to a “sell” rating and raised their target price for the company from $2.00 to $2.25 in a report on Wednesday. Three investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus target price of $3.10.

Mercer International Trading Down 1.4%

Mercer International stock traded down $0.04 during midday 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’s 50-day simple moving average is $2.02 and its 200 day simple moving average is $2.65. Mercer International has a twelve month low of $1.48 and a twelve month high of $8.28. The company has a debt-to-equity ratio of 4.30, a quick ratio of 1.68 and a current ratio of 3.01. The stock has a market capitalization of $167.79 million, a PE ratio of -0.97 and a beta of 0.69.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last released its quarterly earnings data on Thursday, November 6th. The basic materials company reported ($0.97) EPS for the quarter, missing analysts’ consensus estimates of ($0.89) by ($0.08). The firm had revenue of $458.07 million during the quarter, compared to analysts’ expectations of $482.70 million. Mercer International had a negative return on equity of 37.38% and a negative net margin of 9.04%. Analysts expect that Mercer International will post -0.29 EPS for the current year.

Insider Activity at Mercer International

In related news, major shareholder Peter R. Kellogg purchased 295,000 shares of the company’s stock in a transaction that occurred on Wednesday, November 12th. The stock was acquired at an average price of $1.69 per share, for a total transaction of $498,550.00. Following the completion of the purchase, the insider owned 1,520,000 shares in the company, valued at approximately $2,568,800. This represents a 24.08% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In the last three months, insiders purchased 1,007,718 shares of company stock worth $1,860,644. Corporate insiders own 1.00% of the company’s stock.

Hedge Funds Weigh In On Mercer International

Large investors have recently added to or reduced their stakes in the company. Gabelli Funds LLC bought a new position in shares of Mercer International during the second quarter worth about $1,804,000. Iat Reinsurance Co. LTD. raised its holdings in Mercer International by 1.3% during 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 in the last quarter. Jump Financial LLC lifted its holdings in shares of Mercer International by 340.6% in the second 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 period. Millennium Management LLC boosted its position in shares of Mercer International by 16.1% during the 3rd quarter. Millennium Management LLC now owns 994,974 shares of the basic materials company’s stock valued at $2,866,000 after purchasing an additional 137,906 shares in the last quarter. Finally, Gamco Investors INC. ET AL acquired a new position in Mercer International in the second quarter worth approximately $244,000. 85.79% of the stock is currently 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.