Mercury General (NYSE:MCY) Sees Strong Trading Volume – Still a Buy?

Mercury General Co. (NYSE:MCY) saw an uptick in trading volume on Wednesday . 117,843 shares were traded during trading, a decline of 43% from the previous session’s volume of 207,401 shares.The stock last traded at $60.31 and had previously closed at $64.89.

Wall Street Analysts Forecast Growth

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

Mercury General Stock Performance

The company has a market cap of $2.70 billion, a PE ratio of 4.82 and a beta of 0.87. 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 business has a fifty day moving average of $71.53 and a 200-day moving average of $64.45.

Mercury General (NYSE:MCY) last posted its earnings results on Tuesday, October 29th. The insurance provider reported $2.54 earnings per share 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 firm had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.37 billion. During the same quarter in the prior year, the business earned $1.14 EPS. Equities research analysts anticipate that Mercury General Co. will post 6.35 earnings per share for the current fiscal year.

Mercury General Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, December 26th. Shareholders of record on Thursday, December 12th were issued a dividend of $0.317 per share. The ex-dividend date was Thursday, December 12th. This represents a $1.27 dividend on an annualized basis and a dividend yield of 2.60%. Mercury General’s dividend payout ratio (DPR) is 12.59%.

Insiders Place Their Bets

In related news, VP Heidi C. Sullivan sold 1,076 shares of the company’s stock in a transaction that occurred on Tuesday, December 3rd. The stock was sold at an average price of $77.28, for a total value of $83,153.28. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Company insiders own 35.50% of the company’s stock.

Hedge Funds Weigh In On Mercury General

Several hedge funds and other institutional investors have recently modified their holdings of MCY. Harbor Capital Advisors Inc. boosted its holdings in shares of Mercury General by 3.3% during the 4th quarter. Harbor Capital Advisors Inc. now owns 7,496 shares of the insurance provider’s stock valued at $498,000 after purchasing an additional 238 shares during the last quarter. The Manufacturers Life Insurance Company lifted its holdings in shares of Mercury General by 2.6% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 15,660 shares of the insurance provider’s stock valued at $832,000 after acquiring an additional 396 shares during the last quarter. Empowered Funds LLC lifted its holdings in shares of Mercury General by 4.6% in the 3rd quarter. Empowered Funds LLC now owns 10,287 shares of the insurance provider’s stock valued at $648,000 after acquiring an additional 454 shares during the last quarter. BNP Paribas Financial Markets lifted its stake in Mercury General by 1.0% in the third quarter. BNP Paribas Financial Markets now owns 47,882 shares of the insurance provider’s stock worth $3,016,000 after purchasing an additional 481 shares during the last quarter. Finally, Blue Trust Inc. lifted its stake in Mercury General by 72.0% in the third quarter. Blue Trust Inc. now owns 1,151 shares of the insurance provider’s stock worth $72,000 after purchasing an additional 482 shares during the last quarter. 42.39% of the stock is owned by institutional investors.

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.