A share of Mercer International Inc. (NASDAQ:MERC) closed at $12.88 per share on Thursday, up from $12.83 day before. While Mercer International Inc. has overperformed by 0.39%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, MERC rose by 3.29%, with highs and lows ranging from $17.50 to $11.08, whereas the simple moving average fell by -8.54% in the last 200 days.
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On January 10, 2023, CIBC Downgraded Mercer International Inc. (NASDAQ: MERC) to Neutral. A report published by RBC Capital Mkts on December 08, 2022, Downgraded its rating to ‘Sector Perform’ for MERC. Credit Suisse also Upgraded MERC shares as ‘Outperform’, setting a target price of $19 on the company’s shares in a report dated July 06, 2022. RBC Capital Mkts January 31, 2022d the rating to Outperform on January 31, 2022, and set its price target from $8 to $15. Raymond James January 31, 2022d its ‘Mkt Perform’ rating to ‘Outperform’ for MERC, as published in its report on January 31, 2022. Credit Suisse’s report from January 10, 2022 suggests a price prediction of $12.50 for MERC shares, giving the stock a ‘Neutral’ rating. RBC Capital Mkts also rated the stock as ‘Underperform’.
Analysis of Mercer International Inc. (MERC)
It’s important to note that MERC shareholders are currently getting $0.30 per share in dividends, so investors will receive a return regardless of how the company performs. Further, the quarter-over-quarter increase in sales is 13.40%, showing a positive trend in the upcoming months.
Mercer International Inc.’s future performance can be predicted by a variety of well-rounded types of analysis and research, with equity being one of the most crucial ones. The goal here is to ensure that your current return on equity of 41.10% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 2.20, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
For any stock, average volume can be an extremely valuable indicator of volatility, and MERC is registering an average volume of 411.22K. On a monthly basis, the volatility of the stock is set at 4.48%, whereas on a weekly basis, it is put at 4.17%, with a gain of 2.63% over the past seven days. Furthermore, long-term investors anticipate a median target price of $16.00, showing growth from the present price of $12.88, which can serve as yet another indication of whether MERC is worth investing in or should be passed over.
How Do You Analyze Mercer International Inc. Shares?
A giant in the Paper & Paper Products market, Mercer International Inc. (MERC) is based in the Canada. When comparing Mercer International Inc. shares with other companies under Basic Materials, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 2.83, there is a growth in quarterly earnings of -3.80%.
Besides checking the fundamentals, you should also know how many employees own shares in the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 0.20%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 55.40% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in MERC shares?
The recent increase in stakes in MERC appears to be a result of several institutional investors and hedge funds increasing their positions. Dimensional Fund Advisors LP’s position in MERC has increased by 3.87% in the first quarter. The company now owns 4,886,172 shares of the stock, with a value of $56.88 million, following the purchase of 181,868 additional shares during the last quarter. BlackRock Fund Advisors made another increased to its shares in MERC during the first quarter, upping its stake by 5.24%. During the last quarter, the company dropped down 228,001 additional shares for a total stake of worth $53.31 million, bringing number of shares owned by the company to 4,579,688.
During the first quarter, Redwood Capital Management LLC subtracted a -1,115,972 position in MERC. The Vanguard Group, Inc. purchased an additional 0.12 million shares in the last quarter, increasing its holdings by 8.02%, now holding 1.63 million shares worth $19.02 million. MERC shares are owned by institutional investors to the tune of 55.40% at present.
