Mercer International (NASDAQ:MERC) Downgraded to “Strong Sell” at BidaskClub

BidaskClub cut shares of Mercer International (NASDAQ:MERC) (TSE:MRI.U) from a sell rating to a strong sell rating in a research note published on Saturday morning, BidAskClub reports.

A number of other brokerages have also recently issued reports on MERC. Raymond James set a $60.00 target price on Banner and gave the stock a buy rating in a report on Friday, May 3rd. Zacks Investment Research cut EXACT Sciences from a hold rating to a sell rating in a report on Tuesday, July 2nd. TD Securities increased their target price on Westshore Terminals Investment from C$20.00 to C$21.00 and gave the stock a hold rating in a report on Monday, May 6th. CIBC increased their target price on Norbord from C$31.00 to C$35.00 in a report on Friday, July 5th. Finally, ValuEngine upgraded Valmont Industries from a sell rating to a hold rating in a report on Friday, July 12th. Three research analysts have rated the stock with a sell rating, one has issued a hold rating and three have issued a buy rating to the company’s stock. Mercer International has a consensus rating of Hold and a consensus price target of $22.00.

Shares of MERC stock opened at $13.22 on Friday. The firm has a market cap of $894.17 million, a P/E ratio of 6.74 and a beta of 1.65. Mercer International has a 52 week low of $9.36 and a 52 week high of $19.14. The company has a current ratio of 3.98, a quick ratio of 2.65 and a debt-to-equity ratio of 1.68. The stock’s 50 day moving average is $14.82.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last issued its earnings results on Thursday, May 2nd. The basic materials company reported $0.78 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.72 by $0.06. Mercer International had a return on equity of 26.76% and a net margin of 9.82%. The company had revenue of $484.00 million for the quarter, compared to analysts’ expectations of $476.87 million. During the same period last year, the business earned $0.82 EPS. Mercer International’s quarterly revenue was up 31.6% compared to the same quarter last year. As a group, equities analysts expect that Mercer International will post 2.35 EPS for the current year.

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 3rd. Investors of record on Monday, June 24th were issued a $0.1375 dividend. This is a boost from Mercer International’s previous quarterly dividend of $0.13. This represents a $0.55 dividend on an annualized basis and a dividend yield of 4.16%. The ex-dividend date was Friday, June 21st. Mercer International’s dividend payout ratio (DPR) is currently 28.06%.

Several institutional investors and hedge funds have recently modified their holdings of the stock. Walthausen & Co. LLC lifted its holdings in shares of Mercer International by 9.5% in the 4th quarter. Walthausen & Co. LLC now owns 895,199 shares of the basic materials company’s stock worth $9,346,000 after purchasing an additional 77,950 shares in the last quarter. Systematic Financial Management LP lifted its stake in Mercer International by 9.5% during the 1st quarter. Systematic Financial Management LP now owns 313,700 shares of the basic materials company’s stock valued at $4,238,000 after acquiring an additional 27,288 shares in the last quarter. Kennedy Capital Management Inc. bought a new position in Mercer International during the 1st quarter valued at $1,891,000. Arizona State Retirement System bought a new position in Mercer International during the 1st quarter valued at $897,000. Finally, Rhumbline Advisers bought a new position in Mercer International during the 1st quarter valued at $881,000. Institutional investors own 78.32% of the company’s stock.

About Mercer International

Mercer International Inc, together with its subsidiaries, manufactures and sells northern bleached softwood Kraft (NBSK) pulp in the United States, Europe, Asia, and internationally. The company operates in two segments, Pulp and Wood Products. It produces NBSK pulp primarily from wood chips and pulp logs; carbon neutral or green energy using carbon-neutral bio-fuels, such as black liquor and wood waste; and tall oil for use as a chemical additive and green energy source.

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