Mercury General (NYSE:MCY) Cut to "Buy" at StockNews.com

StockNews.com downgraded shares of Mercury General (NYSE:MCY - Free Report) from a strong-buy rating to a buy rating in a research report report published on Wednesday morning.

Mercury General Stock Down 4.5 %

Mercury General stock traded down $3.15 during midday trading on Wednesday, hitting $67.41. 324,400 shares of the company were exchanged, compared to its average volume of 237,461. The company has a market cap of $3.73 billion, a PE ratio of 6.68 and a beta of 0.84. Mercury General has a fifty-two week low of $36.96 and a fifty-two week high of $80.72. The company's fifty day moving average price is $71.83 and its 200-day moving average price is $63.05. The company has a debt-to-equity ratio of 0.31, a current ratio of 0.33 and a quick ratio of 0.33.

Mercury General (NYSE:MCY - Get Free Report) last posted its earnings results on Tuesday, October 29th. The insurance provider reported $2.54 EPS for the quarter, topping analysts' consensus estimates of $1.15 by $1.39. The business had revenue of $1.53 billion for the quarter, compared to analysts' expectations of $1.37 billion. Mercury General had a net margin of 10.18% and a return on equity of 18.04%. During the same period in the previous year, the company posted $1.14 earnings per share. On average, research analysts predict that Mercury General will post 6.35 EPS for the current fiscal year.

Mercury General Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 26th. Investors of record on Thursday, December 12th will be paid a $0.317 dividend. This represents a $1.27 annualized dividend and a dividend yield of 1.88%. The ex-dividend date is Thursday, December 12th. Mercury General's dividend payout ratio (DPR) is 12.59%.

Insider Buying and Selling at Mercury General

In other Mercury General news, VP Heidi C. Sullivan sold 1,076 shares of the firm's stock in a transaction on Tuesday, December 3rd. The shares were 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 Securities & Exchange Commission, which can be accessed through this link. 35.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Mercury General

Several large investors have recently modified their holdings of the stock. Dimensional Fund Advisors LP raised its stake in Mercury General by 4.7% during the second quarter. Dimensional Fund Advisors LP now owns 1,999,235 shares of the insurance provider's stock valued at $106,237,000 after buying an additional 88,954 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Mercury General by 2.5% in the 3rd quarter. Geode Capital Management LLC now owns 623,460 shares of the insurance provider's stock worth $39,273,000 after buying an additional 15,264 shares during the last quarter. Bank of New York Mellon Corp boosted its holdings in shares of Mercury General by 3.8% in the 2nd quarter. Bank of New York Mellon Corp now owns 310,333 shares of the insurance provider's stock valued at $16,491,000 after buying an additional 11,242 shares during the period. Phase 2 Partners LLC grew its position in shares of Mercury General by 142.1% during the 3rd quarter. Phase 2 Partners LLC now owns 273,955 shares of the insurance provider's stock valued at $17,254,000 after buying an additional 160,808 shares during the last quarter. Finally, Assenagon Asset Management S.A. raised its stake in Mercury General by 607.5% during the third quarter. Assenagon Asset Management S.A. now owns 214,427 shares of the insurance provider's stock worth $13,505,000 after acquiring an additional 184,121 shares during the period. Institutional investors own 42.39% of the company's stock.

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.