Merck & Co., Inc. (NYSE:MRK) Trading Up 0% – Should You Buy?

Shares of Merck & Co., Inc. (NYSE:MRK) were up 0% during trading on Wednesday . The company traded as high as $95.43 and last traded at $94.76. Approximately 1,544,630 shares traded hands during trading, a decline of 84% from the average daily volume of 9,951,697 shares. The stock had previously closed at $94.72.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. Guggenheim dropped their target price on shares of Merck & Co., Inc. from $122.00 to $115.00 and set a “buy” rating for the company in a report on Wednesday, February 12th. Truist Financial reiterated a “hold” rating and set a $110.00 target price (down from $130.00) on shares of Merck & Co., Inc. in a research report on Wednesday, January 8th. Bank of America dropped their price target on Merck & Co., Inc. from $118.00 to $112.00 and set a “buy” rating for the company in a research report on Wednesday, February 5th. HSBC upgraded shares of Merck & Co., Inc. from a “hold” rating to a “buy” rating and set a $130.00 price objective on the stock in a research report on Wednesday, December 4th. Finally, Citigroup dropped their target price on shares of Merck & Co., Inc. from $125.00 to $115.00 and set a “buy” rating for the company in a report on Wednesday, February 5th. Eleven investment analysts have rated the stock with a hold rating, nine have assigned a buy rating and three have given a strong buy rating to the stock. According to MarketBeat, Merck & Co., Inc. presently has an average rating of “Moderate Buy” and a consensus price target of $117.12.

Merck & Co., Inc. Trading Down 0.9 %

The company has a current ratio of 1.36, a quick ratio of 1.15 and a debt-to-equity ratio of 0.79. The stock has a market capitalization of $237.06 billion, a price-to-earnings ratio of 13.94, a price-to-earnings-growth ratio of 0.77 and a beta of 0.35. The business has a 50 day simple moving average of $93.34 and a 200-day simple moving average of $101.45.

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

Merck & Co., Inc. Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, April 7th. Investors of record on Monday, March 17th will be issued a $0.81 dividend. This represents a $3.24 dividend on an annualized basis and a yield of 3.45%. The ex-dividend date of this dividend is Monday, March 17th. Merck & Co., Inc.’s payout ratio is currently 48.14%.

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

Insider Transactions at Merck & Co., Inc.

In related news, insider Cristal N. Downing sold 2,361 shares of the stock in a transaction that occurred on Thursday, February 6th. The shares were sold at an average price of $88.76, for a total transaction of $209,562.36. Following the completion of the sale, the insider now 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 document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Inge G. Thulin purchased 2,833 shares of Merck & Co., Inc. stock in a transaction on Thursday, February 6th. The shares were acquired at an average cost of $88.25 per share, for a total transaction of $250,012.25. Following the completion of the transaction, the director now owns 2,933 shares of the company’s stock, valued at $258,837.25. This 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 Trading of Merck & Co., Inc.

Several large investors have recently added to or reduced their stakes in MRK. Franklin Resources Inc. grew its stake in shares of Merck & Co., Inc. by 12.9% in the third quarter. Franklin Resources Inc. now owns 16,049,161 shares of the company’s stock valued at $1,759,800,000 after buying an additional 1,836,505 shares in the last quarter. Janney Montgomery Scott LLC grew its position in Merck & Co., Inc. by 1.9% in the fourth quarter. Janney Montgomery Scott LLC now owns 1,902,509 shares of the company’s stock valued at $189,262,000 after acquiring an additional 35,525 shares in the last quarter. Charles Schwab Investment Management Inc. raised its stake in shares of Merck & Co., Inc. by 2.8% during the third quarter. Charles Schwab Investment Management Inc. now owns 18,807,293 shares of the company’s stock valued at $2,135,785,000 after purchasing an additional 514,060 shares during the period. Littlejohn Financial Services Inc. purchased a new stake in shares of Merck & Co., Inc. during the fourth quarter valued at approximately $2,080,000. Finally, Nordea Investment Management AB lifted its position in shares of Merck & Co., Inc. by 4.7% during the fourth quarter. Nordea Investment Management AB now owns 9,399,643 shares of the company’s stock worth $933,761,000 after purchasing an additional 422,382 shares in the last quarter. 76.07% of the stock is currently owned by institutional investors and hedge funds.

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.