Mercer International (NASDAQ:MERC) Downgraded by Zacks Investment Research

Zacks Investment Research downgraded shares of Mercer International (NASDAQ:MERC) (TSE:MRI.U) from a hold rating to a sell rating in a research note published on Wednesday, reports.

According to Zacks, “Mercer International Inc. owns and operates a diverse pulp and paper business in the southern German states of Saxony and Thuringia, in the former East Germany. The Company operates it’s pulp business primarily through its subsidiaries, Spezialpapierfabrik Blankenstein GmbH and Zellstof-und Papierfabrik Rosenthal GmbH & Co. KG , and conducts its paper business through another subsidiary, Dresden Papier GmbH. “

MERC has been the topic of several other reports. ValuEngine lowered shares of Mercer International from a strong-buy rating to a buy rating in a research note on Friday, December 11th. BidaskClub lowered shares of Mercer International from a buy rating to a hold rating in a research note on Wednesday, December 23rd. TD Securities upgraded shares of Mercer International from a hold rating to a buy rating and set a $8.00 price target on the stock in a research note on Monday, November 2nd. They noted that the move was a valuation call. Finally, Raymond James reiterated an outperform rating on shares of Mercer International in a research note on Thursday, December 10th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and five have assigned a buy rating to the stock. The company currently has an average rating of Buy and an average target price of $9.33.

MERC opened at $10.25 on Wednesday. The stock has a market capitalization of $675.15 million, a P/E ratio of -8.69 and a beta of 1.91. Mercer International has a 12 month low of $5.77 and a 12 month high of $13.44. The firm’s fifty day simple moving average is $9.13 and its 200 day simple moving average is $7.88. The company has a current ratio of 4.16, a quick ratio of 2.81 and a debt-to-equity ratio of 2.11.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last issued its quarterly earnings results on Tuesday, November 3rd. The basic materials company reported $0.11 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.12) by $0.23. Mercer International had a negative net margin of 5.68% and a negative return on equity of 14.04%. The firm had revenue of $333.20 million for the quarter, compared to analyst estimates of $362.34 million. During the same period in the previous year, the business earned $0.02 EPS. The company’s revenue was down 13.1% compared to the same quarter last year. On average, equities research analysts predict that Mercer International will post -0.09 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Wednesday, December 30th. Stockholders of record on Wednesday, December 23rd were issued a dividend of $0.065 per share. This represents a $0.26 dividend on an annualized basis and a dividend yield of 2.54%. The ex-dividend date of this dividend was Tuesday, December 22nd. Mercer International’s dividend payout ratio (DPR) is presently -325.00%.

A hedge fund recently bought a new stake in Mercer International stock. Matarin Capital Management LLC acquired a new stake in Mercer International Inc. (NASDAQ:MERC) (TSE:MRI.U) in the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor acquired 109,212 shares of the basic materials company’s stock, valued at approximately $721,000. Matarin Capital Management LLC owned about 0.17% of Mercer International at the end of the most recent reporting period. 76.21% of the stock is currently owned by institutional investors and hedge funds.

Mercer International Company Profile

Mercer International Inc, together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) pulp in Europe, the United States, Asia, and internationally. The company operates in two segments, Pulp and Wood Products. It also generates and sells green energy produced from biomass cogeneration power plant to third party utilities.

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