Merck & Co., Inc. (NYSE:MRK) Stock Price Up 0.6% – Here’s Why

Merck & Co., Inc. (NYSE:MRK) shares traded up 0.6% during mid-day trading on Friday . The stock traded as high as $91.80 and last traded at $91.09. 2,481,643 shares traded hands during trading, a decline of 83% from the average session volume of 14,953,652 shares. The stock had previously closed at $90.58.

Analysts Set New Price Targets

A number of research firms have recently commented on MRK. Leerink Partners cut their target price on shares of Merck & Co., Inc. from $136.00 to $119.00 and set an “outperform” rating for the company in a research note on Monday, January 13th. HSBC upgraded Merck & Co., Inc. from a “hold” rating to a “buy” rating and set a $130.00 price objective for the company in a research note on Wednesday, December 4th. Morgan Stanley decreased their target price on Merck & Co., Inc. from $113.00 to $106.00 and set an “equal weight” rating on the stock in a research report on Wednesday, February 5th. Guggenheim dropped their price target on Merck & Co., Inc. from $122.00 to $115.00 and set a “buy” rating for the company in a research report on Wednesday, February 12th. Finally, Daiwa Capital Markets downgraded Merck & Co., Inc. from a “buy” rating to a “neutral” rating in a research note on Monday, November 11th. One investment analyst has rated the stock with a sell rating, eleven have issued a hold rating, nine have issued a buy rating and three have given a strong buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $116.39.

Merck & Co., Inc. Trading Up 1.8 %

The stock has a market cap of $232.98 billion, a PE ratio of 13.70, a price-to-earnings-growth ratio of 0.77 and a beta of 0.38. The company’s 50-day moving average price is $94.63 and its 200 day moving average price is $103.37. 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 posted its earnings results on Tuesday, February 4th. The company reported $1.72 EPS for the quarter, missing analysts’ consensus estimates of $1.85 by ($0.13). The business had revenue of $15.62 billion during the quarter, compared to analysts’ expectations 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 prior year, the firm earned $0.03 EPS. On average, sell-side analysts forecast that Merck & Co., Inc. will post 9.01 EPS for the current fiscal year.

Merck & Co., Inc. Dividend Announcement

The business 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. This represents a $3.24 dividend on an annualized basis and a dividend yield of 3.51%. The ex-dividend date of this dividend is Monday, March 17th. Merck & Co., Inc.’s dividend payout ratio is presently 48.14%.

Merck & Co., Inc. declared that its Board of Directors has approved a stock repurchase program on Tuesday, January 28th that authorizes the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 4.1% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its stock is undervalued.

Insider Transactions at Merck & Co., Inc.

In related news, insider Cristal N. Downing sold 2,361 shares of the business’s stock in a transaction 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 owns 7,085 shares in the company, valued at approximately $628,864.60. The trade was a 24.99 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Inge G. Thulin bought 2,833 shares of the stock in a transaction that occurred on Thursday, February 6th. The shares were purchased at an average price of $88.25 per share, with a total value of $250,012.25. Following the completion of the acquisition, the director now directly owns 2,933 shares in the company, valued at $258,837.25. This trade represents a 2,833.00 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Company insiders own 0.09% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in MRK. Midwest Capital Advisors LLC purchased a new position in Merck & Co., Inc. in the 4th quarter valued at approximately $26,000. Financial Life Planners acquired a new stake in shares of Merck & Co., Inc. in the fourth quarter valued at $28,000. Noble Wealth Management PBC purchased a new position in Merck & Co., Inc. in the fourth quarter valued at $28,000. Halbert Hargrove Global Advisors LLC purchased a new position in Merck & Co., Inc. in the fourth quarter valued at $28,000. Finally, Promus Capital LLC purchased a new stake in Merck & Co., Inc. during the 4th quarter worth about $30,000. 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.