Convergence Investment Partners LLC Cuts Stake in Merck & Co., Inc. (NYSE:MRK)

Convergence Investment Partners LLC decreased its position in shares of Merck & Co., Inc. (NYSE:MRK - Free Report) by 32.6% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 15,523 shares of the company's stock after selling 7,516 shares during the period. Convergence Investment Partners LLC's holdings in Merck & Co., Inc. were worth $1,544,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Financial Life Planners purchased a new position in shares of Merck & Co., Inc. during the fourth quarter valued at about $28,000. Darwin Wealth Management LLC purchased a new position in shares of Merck & Co., Inc. during the third quarter valued at about $32,000. AM Squared Ltd bought a new position in shares of Merck & Co., Inc. in the 3rd quarter valued at about $34,000. Safe Harbor Fiduciary LLC bought a new position in shares of Merck & Co., Inc. in the 3rd quarter valued at about $34,000. Finally, Peterson Financial Group Inc. bought a new position in shares of Merck & Co., Inc. in the 3rd quarter valued at about $36,000. Hedge funds and other institutional investors own 76.07% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the stock. TD Cowen downgraded shares of Merck & Co., Inc. from a "buy" rating to a "hold" rating and lowered their price target for the company from $121.00 to $100.00 in a report on Monday, February 10th. Wolfe Research assumed coverage on shares of Merck & Co., Inc. in a report on Friday, November 15th. They issued a "peer perform" rating for the company. Guggenheim lowered their price target 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. Hsbc Global Res raised shares of Merck & Co., Inc. from a "hold" rating to a "strong-buy" rating in a report on Wednesday, December 4th. Finally, 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 report on Wednesday, February 5th. One investment analyst has rated the stock with a sell rating, eleven have assigned a hold rating, nine have given a buy rating and three have assigned a strong buy rating to the stock. According to data from MarketBeat, Merck & Co., Inc. has an average rating of "Moderate Buy" and an average price target of $116.39.

Merck & Co., Inc. Trading Up 2.0 %

Shares of Merck & Co., Inc. stock traded up $1.72 on Friday, hitting $89.40. 15,641,321 shares of the company traded hands, compared to its average volume of 17,774,290. The stock's 50 day moving average price is $95.46 and its 200-day moving average price is $104.21. The company has a current ratio of 1.36, a quick ratio of 1.15 and a debt-to-equity ratio of 0.79. Merck & Co., Inc. has a 52 week low of $81.04 and a 52 week high of $134.63. The company has a market cap of $226.14 billion, a PE ratio of 13.28, a PEG ratio of 0.77 and a beta of 0.38.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last posted 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 net margin of 26.67% and a return on equity of 45.35%. The company 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 firm posted $0.03 EPS. The business's revenue was up 6.8% on a year-over-year basis. Equities research analysts predict that Merck & Co., Inc. will post 9.01 EPS for the current year.

Merck & Co., Inc. Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, April 7th. Stockholders of record on Monday, March 17th will be paid a dividend of $0.81 per share. This represents a $3.24 annualized dividend and a dividend yield of 3.62%. The ex-dividend date 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 initiated a stock 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 shares through open market purchases. Shares buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In related news, insider Cristal N. Downing sold 2,361 shares of Merck & Co., Inc. 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 transaction, the insider now directly owns 7,085 shares of the company's stock, valued at $628,864.60. This trade represents a 24.99 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Inge G. Thulin acquired 2,833 shares of the business's stock in a transaction that occurred 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 acquisition, 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 ownership of the stock. The disclosure for this purchase can be found here. Insiders own 0.09% of the company's stock.

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.