Mercury General Corporation (NYSE:MCY): The Fundamentals Have Changed

Mercury General Corporation (NYSE:MCY) shares fell to a low of $39.5622 before closing at $39.79. Intraday shares traded counted 0.29 million, which was 28.0% higher than its 30-day average trading volume of 404.84K. MCY’s previous close was $39.86 while the outstanding shares total 55.36M. The firm has a beta of 0.37, a 12-month trailing P/E ratio of 48.94, and a growth ratio of 1.29. The stock’s Relative Strength Index (RSI) is 43.96, with weekly volatility at 2.30% and ATR at 1.32. The MCY stock’s 52-week price range has touched low of $33.45 and a $65.22 high. The stock traded lower over the last trading session, losing -0.18% on 06/29/20.

Investors have identified the Insurance – Property & Casualty company Mercury General Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $2.25 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Mercury General Corporation (MCY) Fundamentals that are to be considered.

MCY were able to record 86.84 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -41.56 million. In cash movements, the company had a total of 97.15 million as operating cash flow.

Potential earnings growth for Mercury General Corporation (MCY)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Mercury General Corporation recorded a total of 708.31 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -43.69% coming in sequential stages and their sales for the third quarter reducing by -39.49%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 884.76 million trying to sell their products during the last quarter, with the result yielding a gross income of -180.71 million. This allows shareholders to hold on to 55.36M with the revenue now reading -2.51 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.85 cents a share).

Having a look at the company’s valuation, the company is expected to record 2.60 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on MCY sounds very interesting.

Is the stock of MCY attractive?

In related news, Director, Braunegg George Gwyer bought 750 shares of the company’s stock in a transaction that recorded on Jun 12. The purchase was performed at an average price of 40.19, for a total value of 30,139. As the purchase deal closes, the Director, Little Joshua Eric now bought 150 shares of the company’s stock, valued at 5,983. Also, VP/Chief Information Officer, Hosseini Abby bought 167 shares of the company’s stock in a deal that was recorded on Jun 11. The shares were cost at an average price of 40.26 per share, with a total market value of 6,723. Following this completion of disposal, the VP/Chief Information Officer, Hosseini Abby now holds 500 shares of the company’s stock, valued at 20,115. In the last 6 months, insiders have changed their ownership in shares of company stock by 35.50%.

0 out of 3 analysts covering the stock have rated it a Buy, while 1 have maintained a Hold recommendation on Mercury General Corporation. 1 analysts has assigned a Sell rating on the MCY stock. The 12-month mean consensus price target for the company’s shares has been set at $41.00.