Mercury General (NYSE:MCY) Trading 5.5% Higher – Time to Buy?

Mercury General Co. (NYSE:MCY)’s stock price was up 5.5% during mid-day trading on Thursday . The company traded as high as $50.27 and last traded at $50.30. Approximately 469,912 shares changed hands during trading, a decline of 60% from the average daily volume of 1,166,227 shares. The stock had previously closed at $47.69.

Analysts Set New Price Targets

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

Mercury General Stock Performance

The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 0.31. The stock has a market capitalization of $2.77 billion, a P/E ratio of 4.97 and a beta of 0.87. The company’s 50-day moving average is $67.56 and its two-hundred day moving average is $64.33.

Mercury General (NYSE:MCY) last issued its quarterly earnings data on Tuesday, October 29th. The insurance provider reported $2.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 during the quarter, compared to analyst estimates of $1.37 billion. During the same period in the prior year, the company posted $1.14 EPS. As a group, sell-side analysts anticipate that Mercury General Co. will post 5.05 EPS 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 2.53%. The ex-dividend date was Thursday, December 12th. Mercury General’s dividend payout ratio (DPR) is presently 12.59%.

Insiders Place Their Bets

In other news, VP Heidi C. Sullivan sold 1,076 shares of the business’s stock in a transaction on Tuesday, December 3rd. The stock was sold at an average price of $77.28, for a total transaction of $83,153.28. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 35.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Mercury General

A number of institutional investors have recently bought and sold shares of the stock. Allworth Financial LP grew its position in 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 purchasing an additional 500 shares in the last quarter. Quarry LP grew its stake in Mercury General by 112.0% during the 2nd quarter. Quarry LP now owns 1,215 shares of the insurance provider’s stock valued at $65,000 after acquiring an additional 642 shares in the last quarter. Blue Trust Inc. increased its holdings in shares of Mercury General by 72.0% in the 3rd 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 period. CWM LLC lifted its position in shares of Mercury General by 115.8% in 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 in the last quarter. Finally, Quest Partners LLC boosted its holdings in shares of Mercury General by 12,340.0% during the third 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 period. Hedge funds and other institutional investors own 42.39% of the company’s stock.

About Mercury General

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.