Zacks Investment Research Upgrades Mercury General (MCY) to “Buy”

Mercury General (NYSE:MCY) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Wednesday. The firm currently has a $57.00 price objective on the insurance provider’s stock. Zacks Investment Research‘s target price points to a potential upside of 10.04% from the company’s current price.

According to Zacks, “Mercury General Corp. is engaged primarily in writing all risk classifications of automobile insurance in a number of states, principally California. The company offers automobile policyholders the following types of coverage: bodily injury liability, underinsured and uninsured motorist, property damage liability, comprehensive, collision and other hazards specified in the policy. “

MCY has been the topic of several other reports. ValuEngine downgraded Mercury General from a “buy” rating to a “hold” rating in a research note on Wednesday, January 2nd. Keefe, Bruyette & Woods set a $69.00 target price on Mercury General and gave the stock a “buy” rating in a research note on Monday, October 29th.

Shares of MCY stock traded down $0.02 on Wednesday, reaching $51.80. 1,474 shares of the company’s stock were exchanged, compared to its average volume of 270,326. Mercury General has a 52 week low of $41.40 and a 52 week high of $61.83. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.40 and a current ratio of 0.40. The firm has a market capitalization of $2.84 billion, a P/E ratio of 31.46 and a beta of 0.30.

Mercury General (NYSE:MCY) last released its quarterly earnings data on Monday, October 29th. The insurance provider reported $1.11 EPS for the quarter, topping the consensus estimate of $0.73 by $0.38. Mercury General had a return on equity of 7.13% and a net margin of 2.80%. The company had revenue of $905.34 million for the quarter, compared to the consensus estimate of $877.06 million. During the same period last year, the business posted $0.60 EPS. Mercury General’s quarterly revenue was up 9.4% on a year-over-year basis. As a group, sell-side analysts forecast that Mercury General will post 2.8 EPS for the current year.

A number of institutional investors and hedge funds have recently modified their holdings of MCY. First Hawaiian Bank acquired a new position in shares of Mercury General in the 4th quarter valued at about $38,000. Tower Research Capital LLC TRC increased its stake in shares of Mercury General by 460.9% in the 3rd quarter. Tower Research Capital LLC TRC now owns 2,266 shares of the insurance provider’s stock valued at $114,000 after purchasing an additional 1,862 shares in the last quarter. BlueMountain Capital Management LLC purchased a new position in shares of Mercury General in the 3rd quarter valued at about $134,000. Gifford Fong Associates purchased a new position in shares of Mercury General in the 2nd quarter valued at about $137,000. Finally, Flagship Harbor Advisors LLC purchased a new position in shares of Mercury General in the 2nd quarter valued at about $181,000. 47.20% 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, 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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