NEW YORK (TheStreet) -- Shares of Mercury General Corp. (MCY) are down -4% to $50.36 on heavy trading volume after California's fourth biggest auto insurer saw its stock cut to "underperform" from "market perform" at Keefe Bruyette & Woods, Bloomberg reports.
The firm lowered the rating on Friday after the company was up for a sixth consecutive day, moving well past its $46 price target.
The company was helped as investors shifted from commercial insurers that have struggled to raise rates among stiffening completion, Keefe Bruyette said, adding that "Mercury's dividend yield of more than 4% a year helped distinguish the company with bond yields near record low."
TheStreet Ratings team rates MERCURY GENERAL CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate MERCURY GENERAL CORP (MCY) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: