Mercer International Inc. (NASDAQ:MERC) Sees Significant Drop in Short Interest

Mercer International Inc. (NASDAQ:MERC) (TSE:MRI.U) was the recipient of a large decline in short interest in November. As of November 15th, there was short interest totalling 383,300 shares, a decline of 22.1% from the October 31st total of 492,000 shares. Based on an average daily volume of 612,500 shares, the short-interest ratio is presently 0.6 days. Approximately 1.0% of the company’s shares are short sold.

Analyst Upgrades and Downgrades

MERC has been the topic of several recent research reports. StockNews.com upgraded Mercer International from a “sell” rating to a “hold” rating in a research note on Friday, October 18th. Royal Bank of Canada reissued a “sector perform” rating and issued a $7.00 target price on shares of Mercer International in a research note on Monday, November 4th. Finally, CIBC lowered their price target on Mercer International from $10.00 to $8.50 and set a “neutral” rating for the company in a research report on Tuesday, August 13th. Five analysts have rated the stock with a hold rating, According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $9.13.

Insider Activity

In other news, VP Wolfgang Beck acquired 18,500 shares of the firm’s stock in a transaction on Tuesday, September 3rd. The stock was acquired at an average price of $6.02 per share, for a total transaction of $111,370.00. Following the completion of the acquisition, the vice president now owns 26,263 shares in the company, valued at $158,103.26. This trade represents a 238.31 % increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Estrada Juan Carlos Bueno purchased 7,800 shares of the firm’s stock in a transaction that occurred on Friday, September 13th. The stock was acquired at an average price of $6.60 per share, with a total value of $51,480.00. Following the completion of the purchase, the chief executive officer now owns 67,615 shares in the company, valued at $446,259. This represents a 13.04 % increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last 90 days, insiders have purchased 41,300 shares of company stock valued at $252,650. Corporate insiders own 4.20% of the company’s stock.

Institutional Investors Weigh In On Mercer International

Large investors have recently added to or reduced their stakes in the stock. Russell Investments Group Ltd. bought a new position in shares of Mercer International during the 1st quarter valued at $193,000. Entropy Technologies LP purchased a new stake in Mercer International during the third quarter valued at $75,000. Quantbot Technologies LP lifted its holdings in Mercer International by 505.8% in the third quarter. Quantbot Technologies LP now owns 49,483 shares of the basic materials company’s stock valued at $335,000 after acquiring an additional 41,315 shares during the period. BNP Paribas Financial Markets boosted its position in Mercer International by 22.7% in the third quarter. BNP Paribas Financial Markets now owns 36,661 shares of the basic materials company’s stock worth $248,000 after purchasing an additional 6,786 shares during the last quarter. Finally, Geode Capital Management LLC grew its stake in shares of Mercer International by 1.7% during the 3rd quarter. Geode Capital Management LLC now owns 525,532 shares of the basic materials company’s stock valued at $3,559,000 after purchasing an additional 8,957 shares during the period. Institutional investors own 85.79% of the company’s stock.

Mercer International Stock Down 0.6 %

MERC stock traded down $0.04 during midday trading on Friday, hitting $6.17. The company’s stock had a trading volume of 105,639 shares, compared to its average volume of 352,533. The firm’s 50-day moving average is $6.57 and its 200-day moving average is $7.37. The company has a current ratio of 3.79, a quick ratio of 2.39 and a debt-to-equity ratio of 3.09. Mercer International has a 12 month low of $5.33 and a 12 month high of $11.20. The company has a market cap of $412.59 million, a PE ratio of -2.18 and a beta of 1.35.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last released its quarterly earnings data on Thursday, October 31st. The basic materials company reported ($0.26) EPS for the quarter, topping the consensus estimate of ($0.29) by $0.03. The company had revenue of $502.14 million during the quarter, compared to the consensus estimate of $485.84 million. Mercer International had a negative return on equity of 17.62% and a negative net margin of 9.33%. Mercer International’s revenue for the quarter was up 6.7% on a year-over-year basis. During the same period last year, the company earned ($0.39) EPS. On average, equities research analysts forecast that Mercer International will post -1.62 earnings per share for the current fiscal year.

Mercer International Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 26th. Investors of record on Wednesday, December 18th will be given a dividend of $0.075 per share. The ex-dividend date of this dividend is Wednesday, December 18th. This represents a $0.30 dividend on an annualized basis and a yield of 4.86%. Mercer International’s dividend payout ratio (DPR) is -10.60%.

About Mercer International

Mercer International Inc, together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) and northern bleached hardwood kraft (NBHK) pulp worldwide. The company operates through two segments, Pulp and Solid Wood. It manufactures, sells, and distributes pulp, electricity, and chemicals through pulp mills.