Mercury General (NYSE:MCY) Sets New 12-Month High After Better-Than-Expected Earnings

Mercury General Corporation (NYSE:MCY) hit a new 52-week high on Tuesday following a better than expected earnings announcement. The company traded as high as $96.68 and last traded at $96.2090, with a volume of 88548 shares changing hands. The stock had previously closed at $93.47.

The insurance provider reported $3.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.56 by $1.10. Mercury General had a net margin of 7.55% and a return on equity of 19.53%. The company had revenue of $1.54 billion during the quarter, compared to the consensus estimate of $1.37 billion.

Analysts Set New Price Targets

Several equities research analysts recently commented on the stock. Zacks Research downgraded shares of Mercury General from a “strong-buy” rating to a “hold” rating in a research report on Friday, January 9th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Mercury General in a research report on Thursday, January 22nd. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, Mercury General presently has a consensus rating of “Buy” and an average price target of $100.00.

Institutional Trading of Mercury General

A number of institutional investors have recently bought and sold shares of the company. Park West Asset Management LLC acquired a new stake in Mercury General during the 3rd quarter worth about $23,953,000. Rubric Capital Management LP boosted its position in shares of Mercury General by 12.8% during the 2nd quarter. Rubric Capital Management LP now owns 2,054,504 shares of the insurance provider’s stock valued at $138,350,000 after purchasing an additional 232,721 shares in the last quarter. Goldentree Asset Management LP acquired a new stake in Mercury General during the second quarter worth approximately $10,935,000. Sei Investments Co. increased its holdings in Mercury General by 2,513.7% in the second quarter. Sei Investments Co. now owns 157,893 shares of the insurance provider’s stock worth $10,633,000 after purchasing an additional 151,852 shares in the last quarter. Finally, Philosophy Capital Management LLC acquired a new position in Mercury General in the third quarter valued at approximately $11,778,000. Institutional investors own 42.39% of the company’s stock.

Mercury General Stock Performance

The stock has a market capitalization of $5.33 billion, a price-to-earnings ratio of 12.15 and a beta of 0.94. The company has a 50 day simple moving average of $91.33 and a 200-day simple moving average of $84.68. The company has a quick ratio of 0.45, a current ratio of 0.45 and a debt-to-equity ratio of 0.26.

About Mercury General

Mercury General Corporation is a holding company headquartered in Los Angeles, California, that underwrites and markets property and casualty insurance products through its principal subsidiary, Mercury Insurance Company. Established in 1961, the company has built a reputation for offering a broad range of personal and commercial lines, with a focus on automobile coverage. Mercury General operates in key U.S. markets, deploying a mix of independent agents and direct distribution channels to serve policyholders.

The company’s product portfolio includes personal automobile insurance, homeowners and renters policies, as well as commercial automobile, business liability and umbrella insurance.