Mercer International Inc. (NASDAQ:MERC) is one of the worst performers on the stock market today. At current price of $13.53, the shares have already lost -0.7 points (-4.92% lower) from its previous close of $14.23. Should you buy or avoid them? The stock sets an active trading volume day with a reported 268212 contracts so far this session. MERC shares had a relatively better volume day versus average trading capacity of 344.66 thousand shares, but with a 40.31 million float and a -7.48% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for MERC stock indicates that the average analyst price target is $24.83 per share. This means the stock has a potential increase of 83.52% from where the MERC share price has been trading recently which is between $14.16 and $14.4. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $17.
The shorts are climbing into Mercer International Inc. (MERC) stock. The latest set of short interest data was released on 28 June 2019, and the numbers show a rise in short interest in MERC shares. While short interest still represents only 4.03% of MERC’s float, the number of shares shorted have risen by 308990. The number of shares shorted advanced to 1932200 shares, up from 1623210 shares during the preceding fortnight. With average daily trading volumes at 248277 shares, days to cover increased to about 5.081742 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Mercer International Inc. Announces Conference Call for Second Quarter 2019 Results” and dated July 10, 2019.
During the recent trading session for Mercer International Inc. (NASDAQ:MERC), the company witnessed their stock drop by $-1.73 over a week and tumble down $-1.85 from the price 20 days ago. When compared to their established 52-week high of $19.14, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 05/10/18. The recent low of $9.36 stood for a -29.31% since 12/24/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.65 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for Mercer International Inc., the two-week RSI stands at 26.81. This figure suggests that MERC stock, for now, is overbought, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current MERC readings is similarly very revealing as it has a stochastic reading of 14.03% at this stage. This figure means that MERC share price today is being overbought.
Technical chart claims that Mercer International Inc. (MERC) would settle between $14.37/share to $14.5/share level. However, if the stock price goes below the $14.13 mark, then the market for Mercer International Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $14.02 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.86. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at CIBC lowered their recommendation on shares of MERC from Sector Outperform to Neutral in their opinion released on July 05. Raymond James analysts bumped their rating on Mercer International Inc. (NASDAQ:MERC) stock from Outperform to Strong Buy in a separate flash note issued to investors on October 18. Analysts at Credit Suisse released an upgrade from Neutral to Outperform for the stock, in a research note that dated back to May 11.
MERC equity has an average rating of 1.83, with the figure leaning towards a bullish end. 6 analysts who tracked the company were contacted by Reuters. Amongst them, 1 rated the stock as a hold while the remaining 5 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 5 analysts rated Mercer International Inc. (NASDAQ:MERC) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, MERC stock price is currently trading at 5.03X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.79 while for the average stock in the same group, the multiple is 0.62. Mercer International Inc. current P/E ratio of 20.5 means it is trading at a discount against its industry’s 112.14. In the past 5 years, this ratio for the stock has been fluctuating between 6.79 and 19.84.