Mercer International (NASDAQ:MERC) Downgraded to “Strong Sell” Rating by TD Securities

TD Securities lowered shares of Mercer International (NASDAQ:MERC) (TSE:MRI.U) from a hold rating to a strong sell rating in a research report released on Wednesday morning,Zacks.com reports.

A number of other analysts have also recently issued reports on the company. TD Cowen cut Mercer International from a “hold” rating to a “sell” rating and boosted their price objective for the company from $2.00 to $2.25 in a research report on Wednesday, January 21st. Weiss Ratings reiterated a “sell (e+)” rating on shares of Mercer International in a research report on Monday, December 29th. Finally, 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 on the stock in a research note on Monday, November 10th. Three analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, Mercer International has an average rating of “Reduce” and an average price target of $2.95.

Mercer International Price Performance

NASDAQ MERC opened at $2.26 on Wednesday. The company has a quick ratio of 1.79, a current ratio of 3.05 and a debt-to-equity ratio of 23.58. The stock has a market capitalization of $151.04 million, a PE ratio of -0.29 and a beta of 0.72. Mercer International has a 12-month low of $1.48 and a 12-month high of $8.28. The company has a 50 day moving average price of $2.13 and a two-hundred day moving average price of $2.41.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last issued its quarterly earnings data on Thursday, February 12th. The basic materials company reported ($1.39) EPS for the quarter, missing analysts’ consensus estimates of ($0.88) by ($0.51). The company had revenue of $449.50 million for the quarter, compared to analyst estimates of $459.84 million. Mercer International had a negative net margin of 26.65% and a negative return on equity of 81.16%. As a group, equities analysts predict that Mercer International will post -0.29 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in MERC. Gamco Investors INC. ET AL bought a new stake in Mercer International during the 2nd quarter worth about $244,000. Jump Financial LLC grew its stake 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 in the last quarter. Geode Capital Management LLC raised its position in Mercer International by 2.7% during the fourth quarter. Geode Capital Management LLC now owns 561,001 shares of the basic materials company’s stock worth $1,111,000 after acquiring an additional 14,603 shares in the last quarter. Gabelli Funds LLC acquired a new position in shares of Mercer International during the 2nd quarter worth about $1,804,000. Finally, Millennium Management LLC raised its stake in Mercer International by 16.1% in the third quarter. Millennium Management LLC now owns 994,974 shares of the basic materials company’s stock valued at $2,866,000 after buying an additional 137,906 shares during the period. Institutional investors and hedge funds own 85.79% of the company’s stock.

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.