Mercury General (NYSE:MCY) Trading Up 5.5% – Still a Buy?

Shares of Mercury General Co. (NYSE:MCY) shot up 5.5% on Thursday . The stock traded as high as $50.27 and last traded at $50.30. 469,912 shares were traded during trading, a decline of 60% from the average session volume of 1,166,227 shares. The stock had previously closed at $47.69.

Analysts Set New Price Targets

Separately, StockNews.com lowered Mercury General from a “strong-buy” rating to a “buy” rating in a research report on Thursday, December 26th.

Mercury General Stock Down 1.3 %

The stock’s fifty day moving average price is $66.62 and its 200-day moving average price is $64.21. The company has a market capitalization of $2.74 billion, a price-to-earnings ratio of 4.90 and a beta of 0.87. The company has a quick ratio of 0.33, a current ratio of 0.33 and a debt-to-equity ratio of 0.31.

Mercury General (NYSE:MCY) last released its earnings results on Tuesday, October 29th. The insurance provider reported $2.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.15 by $1.39. Mercury General had a return on equity of 18.04% and a net margin of 10.18%. The business had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.37 billion. During the same quarter in the prior year, the company posted $1.14 earnings per share. On average, sell-side analysts predict that Mercury General Co. will post 5.05 earnings per share for the current fiscal year.

Mercury General Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, December 26th. Stockholders of record on Thursday, December 12th were issued a $0.317 dividend. This represents a $1.27 annualized dividend and a dividend yield of 2.57%. The ex-dividend date of this dividend was Thursday, December 12th. Mercury General’s payout ratio is presently 12.59%.

Insider Activity at Mercury General

In other news, VP Heidi C. Sullivan sold 1,076 shares of the company’s stock in a transaction dated Tuesday, December 3rd. The shares were sold at an average price of $77.28, for a total value of $83,153.28. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 35.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Mercury General

A number of institutional investors have recently bought and sold shares of MCY. Allworth Financial LP boosted its holdings in shares of Mercury General by 1,190.5% during the 3rd quarter. Allworth Financial LP now owns 542 shares of the insurance provider’s stock worth $34,000 after buying an additional 500 shares during the period. Quarry LP boosted its holdings in shares of Mercury General by 112.0% during the second quarter. Quarry LP now owns 1,215 shares of the insurance provider’s stock worth $65,000 after acquiring an additional 642 shares during the period. Blue Trust Inc. grew its position in shares of Mercury General by 72.0% in the third quarter. Blue Trust Inc. now owns 1,151 shares of the insurance provider’s stock valued at $72,000 after purchasing an additional 482 shares during the last quarter. CWM LLC increased its stake in shares of Mercury General by 115.8% during the third quarter. CWM LLC now owns 1,215 shares of the insurance provider’s stock worth $77,000 after purchasing an additional 652 shares during the period. Finally, Quest Partners LLC lifted its holdings in Mercury General by 12,340.0% during the 3rd quarter. Quest Partners LLC now owns 1,244 shares of the insurance provider’s stock worth $78,000 after purchasing an additional 1,234 shares during the last quarter. Institutional investors and hedge funds own 42.39% of the company’s stock.

Mercury General Company Profile

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