Capital World Investors Decreases Stock Holdings in Merck & Co., Inc. (NYSE:MRK)

Capital World Investors decreased its position in shares of Merck & Co., Inc. (NYSE:MRK - Free Report) by 48.1% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 7,906,912 shares of the company's stock after selling 7,327,778 shares during the period. Capital World Investors owned approximately 0.31% of Merck & Co., Inc. worth $786,580,000 at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in MRK. Curi RMB Capital LLC increased its stake in Merck & Co., Inc. by 7.4% in the 4th quarter. Curi RMB Capital LLC now owns 212,044 shares of the company's stock worth $21,094,000 after acquiring an additional 14,562 shares during the last quarter. Dimensional Fund Advisors LP increased its position in Merck & Co., Inc. by 63.1% in the fourth quarter. Dimensional Fund Advisors LP now owns 11,577,535 shares of the company's stock worth $1,151,642,000 after purchasing an additional 4,480,007 shares during the last quarter. Edgar Lomax Co. VA purchased a new stake in Merck & Co., Inc. during the fourth quarter valued at $62,830,000. First Trust Advisors LP lifted its position in Merck & Co., Inc. by 39.0% during the fourth quarter. First Trust Advisors LP now owns 907,237 shares of the company's stock valued at $90,252,000 after purchasing an additional 254,691 shares during the last quarter. Finally, Forum Financial Management LP grew its stake in shares of Merck & Co., Inc. by 31.0% in the 4th quarter. Forum Financial Management LP now owns 32,205 shares of the company's stock worth $3,204,000 after buying an additional 7,612 shares in the last quarter. 76.07% of the stock is owned by institutional investors.

Merck & Co., Inc. Stock Down 0.3 %

Shares of NYSE MRK traded down $0.24 during mid-day trading on Wednesday, reaching $78.73. 17,108,873 shares of the company were exchanged, compared to its average volume of 16,253,529. The stock has a market cap of $198.54 billion, a price-to-earnings ratio of 11.70, a P/E/G ratio of 0.77 and a beta of 0.40. The company has a quick ratio of 1.15, a current ratio of 1.36 and a debt-to-equity ratio of 0.79. The firm has a 50-day moving average of $87.21 and a 200 day moving average of $95.72. Merck & Co., Inc. has a 1 year low of $75.93 and a 1 year high of $134.63.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last issued its quarterly earnings results 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 business had revenue of $15.62 billion during the quarter, compared to analyst estimates of $15.51 billion. During the same quarter last year, the company posted $0.03 EPS. Merck & Co., Inc.'s quarterly revenue was up 6.8% compared to the same quarter last year. On average, research analysts expect that Merck & Co., Inc. will post 9.01 earnings per share for the current year.

Merck & Co., Inc. announced that its board has approved a share buyback 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 stock through open market purchases. Stock buyback plans are often a sign that the company's leadership believes its shares are undervalued.

Merck & Co., Inc. Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, April 7th. Stockholders of record on Monday, March 17th were issued a $0.81 dividend. The ex-dividend date was Monday, March 17th. This represents a $3.24 annualized dividend and a dividend yield of 4.12%. Merck & Co., Inc.'s dividend payout ratio (DPR) is presently 48.14%.

Insider Transactions at Merck & Co., Inc.

In related news, insider Cristal N. Downing sold 2,361 shares of the stock in a transaction 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 sale, 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 ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Inge G. Thulin purchased 2,833 shares of the company's stock in a transaction that occurred on Thursday, February 6th. The shares were purchased at an average price of $88.25 per share, for a total transaction of $250,012.25. Following the transaction, the director now owns 2,933 shares of the company's stock, valued at $258,837.25. This trade represents a 2,833.00 % increase in their position. The disclosure for this purchase can be found here. Company insiders own 0.09% of the company's stock.

Analyst Ratings Changes

MRK has been the subject of a number of analyst reports. Guggenheim reaffirmed a "buy" rating and issued a $115.00 price target on shares of Merck & Co., Inc. in a report on Thursday, April 17th. Bank of America decreased their price target on Merck & Co., Inc. from $118.00 to $112.00 and set a "buy" rating on the stock in a report on Wednesday, February 5th. BMO Capital Markets reduced their target price on shares of Merck & Co., Inc. from $105.00 to $96.00 and set a "market perform" rating on the stock in a research note on Wednesday, February 5th. Cantor Fitzgerald assumed coverage on shares of Merck & Co., Inc. in a report on Tuesday. They set a "neutral" rating and a $85.00 price target on the stock. Finally, Morgan Stanley dropped 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 report on Wednesday, February 5th. Twelve investment analysts have rated the stock with a hold rating, seven have issued a buy rating and three have issued a strong buy rating to the stock. According to MarketBeat.com, Merck & Co., Inc. has a consensus rating of "Moderate Buy" and a consensus target price of $111.13.

Merck & Co., Inc. 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.