Merck & Co., Inc. (NYSE:MRK) Reaches New 52-Week Low Following Weak Earnings

Merck & Co., Inc. (NYSE:MRKGet Free Report) shares reached a new 52-week low during trading on Tuesday following a weaker than expected earnings announcement. The company traded as low as $91.35 and last traded at $88.92, with a volume of 3855597 shares trading hands. The stock had previously closed at $99.79.

The company reported $1.72 EPS for the quarter, missing the consensus estimate of $1.85 by ($0.13). Merck & Co., Inc. had a net margin of 19.23% and a return on equity of 36.42%.

Merck & Co., Inc. Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, April 7th. Stockholders of record on Monday, March 17th will be given a dividend of $0.81 per share. This represents a $3.24 annualized dividend and a dividend yield of 3.66%. The ex-dividend date of this dividend is Monday, March 17th. Merck & Co., Inc.’s dividend payout ratio is currently 67.92%.

Merck & Co., Inc. announced that its board has initiated a stock buyback program on Tuesday, January 28th that permits the company to repurchase $10.00 billion in shares. This repurchase authorization permits the company to buy up to 4.1% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s management believes its shares are undervalued.

Analysts Set New Price Targets

MRK has been the topic of a number of recent analyst reports. UBS Group reduced their price objective on shares of Merck & Co., Inc. from $125.00 to $120.00 and set a “buy” rating on the stock in a research report on Wednesday, January 8th. Morgan Stanley decreased their target price on Merck & Co., Inc. from $123.00 to $113.00 and set an “equal weight” rating for the company in a research report on Tuesday, January 21st. Citigroup lowered their target price on Merck & Co., Inc. from $130.00 to $125.00 and set a “buy” rating for the company in a report on Tuesday, January 28th. Wells Fargo & Company lowered their price objective on shares of Merck & Co., Inc. from $125.00 to $110.00 and set an “equal weight” rating for the company in a research note on Friday, November 1st. Finally, Sanford C. Bernstein started coverage on shares of Merck & Co., Inc. in a research report on Thursday, October 17th. They issued a “market perform” rating and a $115.00 price target for the company. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating, nine have assigned a buy rating and three have issued a strong buy rating to the stock. According to data from MarketBeat, Merck & Co., Inc. currently has an average rating of “Moderate Buy” and an average target price of $122.67.

Get Our Latest Stock Analysis on MRK

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of MRK. Delta Financial Group Inc. boosted its position in Merck & Co., Inc. by 2.7% in the fourth quarter. Delta Financial Group Inc. now owns 28,278 shares of the company’s stock valued at $2,813,000 after buying an additional 747 shares during the last quarter. Ascent Wealth Partners LLC lifted its stake in Merck & Co., Inc. by 8.4% during the 4th quarter. Ascent Wealth Partners LLC now owns 17,905 shares of the company’s stock valued at $1,781,000 after acquiring an additional 1,388 shares during the period. Sigma Investment Counselors Inc. boosted its holdings in shares of Merck & Co., Inc. by 5.1% in the 4th quarter. Sigma Investment Counselors Inc. now owns 6,781 shares of the company’s stock valued at $675,000 after acquiring an additional 330 shares during the last quarter. MONECO Advisors LLC increased its stake in shares of Merck & Co., Inc. by 25.4% in the fourth quarter. MONECO Advisors LLC now owns 13,602 shares of the company’s stock worth $1,353,000 after acquiring an additional 2,751 shares during the period. Finally, Lansing Street Advisors grew its position in Merck & Co., Inc. by 7.3% during the 4th quarter. Lansing Street Advisors now owns 4,104 shares of the company’s stock worth $408,000 after purchasing an additional 279 shares during the period. 76.07% of the stock is owned by institutional investors and hedge funds.

Merck & Co., Inc. Price Performance

The firm has a market cap of $224.09 billion, a PE ratio of 18.58, a price-to-earnings-growth ratio of 1.20 and a beta of 0.38. The stock has a 50 day simple moving average of $99.83 and a two-hundred day simple moving average of $107.54. 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. Company Profile

(Get Free Report)

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.

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