Mercury General (MCY) Trading Down 7% Following Weak Earnings

Mercury General Co. (NYSE:MCY) dropped 7% during mid-day trading on Monday following a weaker than expected earnings announcement. The stock traded as low as $48.89 and last traded at $49.67. Approximately 1,894,299 shares were traded during trading, an increase of 218% from the average daily volume of 595,346 shares. The stock had previously closed at $53.41.

The insurance provider reported ($0.26) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.74 by ($1.00). The firm had revenue of $850.70 million during the quarter, compared to the consensus estimate of $832.44 million. Mercury General had a net margin of 2.80% and a return on equity of 7.13%. The firm’s revenue for the quarter was up 9.2% compared to the same quarter last year. During the same period in the previous year, the company posted $0.15 earnings per share.

Several research analysts have weighed in on MCY shares. Keefe, Bruyette & Woods set a $69.00 price target on shares of Mercury General and gave the company a “buy” rating in a report on Monday, October 29th. Zacks Investment Research raised shares of Mercury General from a “hold” rating to a “buy” rating and set a $57.00 price target on the stock in a report on Wednesday, January 9th. Finally, ValuEngine cut shares of Mercury General from a “buy” rating to a “hold” rating in a report on Wednesday, January 2nd.

Institutional investors have recently added to or reduced their stakes in the business. Advisors Asset Management Inc. grew its position in shares of Mercury General by 9.7% during the 2nd quarter. Advisors Asset Management Inc. now owns 12,320 shares of the insurance provider’s stock worth $561,000 after purchasing an additional 1,094 shares in the last quarter. Bank of New York Mellon Corp grew its position in shares of Mercury General by 4.8% during the 2nd quarter. Bank of New York Mellon Corp now owns 537,048 shares of the insurance provider’s stock worth $24,469,000 after purchasing an additional 24,606 shares in the last quarter. MERIAN GLOBAL INVESTORS UK Ltd grew its position in shares of Mercury General by 212.5% during the 3rd quarter. MERIAN GLOBAL INVESTORS UK Ltd now owns 244,861 shares of the insurance provider’s stock worth $12,282,000 after purchasing an additional 166,502 shares in the last quarter. Acadian Asset Management LLC acquired a new position in shares of Mercury General during the 3rd quarter worth approximately $225,000. Finally, WBI Investments Inc. acquired a new position in shares of Mercury General during the 3rd quarter worth approximately $778,000. 48.91% of the stock is currently owned by hedge funds and other institutional investors.

The stock has a market capitalization of $2.96 billion, a PE ratio of 30.29, a P/E/G ratio of 0.32 and a beta of 0.22. The company has a current ratio of 0.40, a quick ratio of 0.40 and a debt-to-equity ratio of 0.21.

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Mercury General Company Profile (NYSE:MCY)

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, fire, and umbrella insurance. Its automobile insurance products cover collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards; and homeowners insurance products cover dwelling, liability, personal property, fire, and other hazards.

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