Merck & Co., Inc. (NYSE:MRK) Stock Price Down 1.7% – Here’s What Happened

Merck & Co., Inc. (NYSE:MRK)’s stock price was down 1.7% on Monday . The company traded as low as $82.09 and last traded at $83.01. Approximately 26,768,428 shares were traded during mid-day trading, an increase of 89% from the average daily volume of 14,162,434 shares. The stock had previously closed at $84.42.

Wall Street Analyst Weigh In

A number of research analysts have commented on MRK shares. Wells Fargo & Company reduced 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 research report on Friday, November 1st. Truist Financial reaffirmed a “hold” rating and set a $110.00 target price (down previously from $130.00) on shares of Merck & Co., Inc. in a report on Wednesday, January 8th. Morgan Stanley lowered their price target on shares of 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. UBS Group lowered their target price on Merck & Co., Inc. from $125.00 to $120.00 and set a “buy” rating for the company in a research note on Wednesday, January 8th. Finally, Hsbc Global Res upgraded Merck & Co., Inc. from a “hold” rating to a “strong-buy” rating in a report on Wednesday, December 4th. One research analyst has rated the stock with a sell rating, ten have given a hold rating, nine have assigned a buy rating and three have assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $117.06.

Merck & Co., Inc. Price Performance

The company has a debt-to-equity ratio of 0.79, a quick ratio of 1.15 and a current ratio of 1.36. The firm has a 50-day moving average price of $97.04 and a 200-day moving average price of $105.06. The stock has a market cap of $209.99 billion, a P/E ratio of 12.33, a price-to-earnings-growth ratio of 0.83 and a beta of 0.38.

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

Merck & Co., Inc. Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, April 7th. Shareholders of record on Monday, March 17th will be issued a $0.81 dividend. This represents a $3.24 annualized dividend and a yield of 3.90%. The ex-dividend date is Monday, March 17th. Merck & Co., Inc.’s dividend payout ratio (DPR) is 48.14%.

Merck & Co., Inc. declared that its board has initiated a stock repurchase program on Tuesday, January 28th that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the company to buy up to 4.1% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Insider Transactions at Merck & Co., Inc.

In related news, insider Cristal N. Downing sold 2,361 shares of the company’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 transaction, the insider now directly owns 7,085 shares of the company’s stock, valued at approximately $628,864.60. This represents a 24.99 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Inge G. Thulin bought 2,833 shares of Merck & Co., Inc. stock in a transaction on Thursday, February 6th. The stock was acquired at an average cost of $88.25 per share, with a total value of $250,012.25. Following the acquisition, the director now owns 2,933 shares in the company, valued at approximately $258,837.25. This represents a 2,833.00 % increase in their position. The disclosure for this purchase can be found here. 0.09% of the stock is owned by insiders.

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

A number of hedge funds have recently bought and sold shares of the business. E&G Advisors LP raised its holdings in shares of Merck & Co., Inc. by 0.7% during the third quarter. E&G Advisors LP now owns 14,698 shares of the company’s stock valued at $1,669,000 after purchasing an additional 100 shares during the last quarter. Massachusetts Wealth Management raised its stake in Merck & Co., Inc. by 0.4% during the 3rd quarter. Massachusetts Wealth Management now owns 22,474 shares of the company’s stock valued at $2,552,000 after buying an additional 100 shares during the last quarter. Shayne & Jacobs LLC lifted its holdings in shares of Merck & Co., Inc. by 1.8% during the 3rd quarter. Shayne & Jacobs LLC now owns 5,611 shares of the company’s stock valued at $637,000 after buying an additional 100 shares during the period. Alan B Lancz & Associates Inc. boosted its stake in shares of Merck & Co., Inc. by 0.7% in the 3rd quarter. Alan B Lancz & Associates Inc. now owns 13,834 shares of the company’s stock worth $1,571,000 after buying an additional 100 shares during the last quarter. Finally, First Bank & Trust boosted its stake in shares of Merck & Co., Inc. by 1.1% in the 3rd quarter. First Bank & Trust now owns 8,995 shares of the company’s stock worth $1,021,000 after buying an additional 101 shares during the last quarter. Hedge funds and other institutional investors own 76.07% of the company’s stock.

Merck & Co., Inc. Company Profile

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.