Mercury General (NYSE:MCY) Shares Gap Up on Earnings Beat

Mercury General Co. (NYSE:MCY - Get Free Report)'s share price gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $50.09, but opened at $59.97. Mercury General shares last traded at $58.97, with a volume of 719,992 shares traded.

The insurance provider reported $2.78 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.94 by $0.84. Mercury General had a return on equity of 18.04% and a net margin of 10.18%.

Mercury General Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 27th. Shareholders of record on Thursday, March 13th will be paid a dividend of $0.3175 per share. The ex-dividend date is Thursday, March 13th. This is an increase from Mercury General's previous quarterly dividend of $0.32. This represents a $1.27 annualized dividend and a dividend yield of 2.32%. Mercury General's dividend payout ratio (DPR) is 12.59%.

Analyst Ratings Changes

MCY has been the subject of several analyst reports. StockNews.com lowered shares of Mercury General from a "buy" rating to a "hold" rating in a research report on Thursday. Raymond James raised Mercury General from an "outperform" rating to a "strong-buy" rating and lifted their price target for the stock from $70.00 to $80.00 in a research report on Wednesday.

Insider Activity

In related news, VP Heidi C. Sullivan sold 1,076 shares of the firm'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 transaction was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 35.50% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Russell Investments Group Ltd. grew its holdings in Mercury General by 0.3% in the fourth quarter. Russell Investments Group Ltd. now owns 75,400 shares of the insurance provider's stock worth $5,013,000 after purchasing an additional 224 shares during the last quarter. Harbor Capital Advisors Inc. raised its stake in Mercury General by 3.3% in the fourth quarter. Harbor Capital Advisors Inc. now owns 7,496 shares of the insurance provider's stock valued at $498,000 after buying an additional 238 shares during the last quarter. Smartleaf Asset Management LLC raised its stake in Mercury General by 145.1% in the fourth quarter. Smartleaf Asset Management LLC now owns 554 shares of the insurance provider's stock valued at $37,000 after buying an additional 328 shares during the last quarter. Envestnet Asset Management Inc. raised its stake in Mercury General by 6.8% in the fourth quarter. Envestnet Asset Management Inc. now owns 5,542 shares of the insurance provider's stock valued at $368,000 after buying an additional 353 shares during the last quarter. Finally, Pictet Asset Management Holding SA raised its stake in Mercury General by 13.2% in the fourth quarter. Pictet Asset Management Holding SA now owns 3,816 shares of the insurance provider's stock valued at $254,000 after buying an additional 444 shares during the last quarter. 42.39% of the stock is currently owned by hedge funds and other institutional investors.

Mercury General Stock Performance

The company has a market cap of $3.03 billion, a PE ratio of 5.43 and a beta of 0.85. 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 firm's 50-day simple moving average is $58.95 and its two-hundred day simple moving average is $63.74.

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.