Merck & Co., Inc. (NYSE:MRK) Trading Up 1.5% – Here’s Why

Merck & Co., Inc. (NYSE:MRK)’s share price was up 1.5% on Wednesday . The stock traded as high as $84.65 and last traded at $84.53. Approximately 3,770,849 shares changed hands during trading, a decline of 75% from the average daily volume of 14,816,002 shares. The stock had previously closed at $83.29.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the company. Daiwa America cut Merck & Co., Inc. from a “strong-buy” rating to a “hold” rating in a research note on Monday, November 11th. Daiwa Capital Markets downgraded Merck & Co., Inc. from a “buy” rating to a “neutral” rating in a report on Monday, November 11th. Morgan Stanley reduced their target price on Merck & Co., Inc. from $113.00 to $106.00 and set an “equal weight” rating for the company in a research note on Wednesday, February 5th. TD Securities downgraded shares of Merck & Co., Inc. from a “buy” rating to a “hold” rating and decreased their price target for the stock from $121.00 to $100.00 in a research report on Monday, February 10th. Finally, Wells Fargo & Company cut their price target on shares of Merck & Co., Inc. from $125.00 to $110.00 and set an “equal weight” rating on the stock in a report on Friday, November 1st. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating, nine have issued a buy rating and three have issued a strong buy rating to the company’s stock. According to MarketBeat, Merck & Co., Inc. presently has an average rating of “Moderate Buy” and a consensus target price of $116.39.

Merck & Co., Inc. Stock Performance

The firm has a market cap of $214.38 billion, a price-to-earnings ratio of 12.59, a PEG ratio of 0.71 and a beta of 0.38. The stock’s fifty day moving average is $96.26 and its two-hundred day moving average is $104.62. The company has a debt-to-equity ratio of 0.79, a quick ratio of 1.15 and a current ratio of 1.36.

Merck & Co., Inc. (NYSE:MRK) last announced its quarterly earnings results on Tuesday, February 4th. The company reported $1.72 EPS for the quarter, missing the consensus estimate of $1.85 by ($0.13). The firm had revenue of $15.62 billion during the quarter, compared to analyst estimates of $15.51 billion. Merck & Co., Inc. had a net margin of 26.67% and a return on equity of 45.35%. Merck & Co., Inc.’s revenue for the quarter was up 6.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.03 EPS. On average, analysts expect that Merck & Co., Inc. will post 9.01 earnings per share for the current fiscal year.

Merck & Co., Inc. Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, April 7th. Shareholders of record on Monday, March 17th will be given a dividend of $0.81 per share. The ex-dividend date of this dividend is Monday, March 17th. This represents a $3.24 dividend on an annualized basis and a yield of 3.82%. Merck & Co., Inc.’s dividend payout ratio (DPR) is presently 48.14%.

Merck & Co., Inc. declared that its Board of Directors has approved a share repurchase plan on Tuesday, January 28th that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the company to purchase up to 4.1% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board believes its shares are undervalued.

Insider Activity at Merck & Co., Inc.

In related news, Director Inge G. Thulin acquired 2,833 shares of the firm’s stock in a transaction dated Thursday, February 6th. The stock was acquired at an average cost of $88.25 per share, for a total transaction of $250,012.25. Following the completion of the acquisition, the director now directly owns 2,933 shares of the company’s stock, valued at approximately $258,837.25. The trade was a 2,833.00 % increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Cristal N. Downing sold 2,361 shares of the business’s stock in a transaction that occurred on Thursday, February 6th. The stock was sold at an average price of $88.76, for a total value of $209,562.36. Following the sale, the insider now directly owns 7,085 shares in the company, valued at approximately $628,864.60. The trade was a 24.99 % decrease in their position. The disclosure for this sale can be found here. Company insiders own 0.09% of the company’s stock.

Hedge Funds Weigh In On Merck & Co., Inc.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MRK. Midwest Capital Advisors LLC acquired a new position in Merck & Co., Inc. during the fourth quarter worth about $26,000. Financial Life Planners bought a new position in shares of Merck & Co., Inc. during the 4th quarter valued at about $28,000. Noble Wealth Management PBC acquired a new position in shares of Merck & Co., Inc. in the 4th quarter worth approximately $28,000. Halbert Hargrove Global Advisors LLC bought a new stake in shares of Merck & Co., Inc. in the 4th quarter worth approximately $28,000. Finally, Promus Capital LLC acquired a new stake in Merck & Co., Inc. during the fourth quarter valued at approximately $30,000. 76.07% of the stock is owned by institutional investors.

About Merck & Co., Inc.

Merck & Co, Inc is a health care company, which engages in the provision of health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. It operates through the following segments: Pharmaceutical, Animal Health, and Other. The Pharmaceutical segment includes human health pharmaceutical and vaccine products.