Merck & Co., Inc. (NYSE:MRK) Stock Price Down 1.1% - What's Next?

Merck & Co., Inc. (NYSE:MRK - Get Free Report)'s share price dropped 1.1% on Friday . The company traded as low as $93.45 and last traded at $93.71. Approximately 2,197,306 shares changed hands during mid-day trading, a decline of 78% from the average daily volume of 10,088,373 shares. The stock had previously closed at $94.71.

Wall Street Analyst Weigh In

Several research analysts have weighed in on MRK shares. Bank of America lowered their price target on Merck & Co., Inc. from $118.00 to $112.00 and set a "buy" rating on the stock in a research report on Wednesday, February 5th. Truist Financial reiterated a "hold" rating and issued a $110.00 price target (down previously from $130.00) on shares of Merck & Co., Inc. in a research note on Wednesday, January 8th. Morgan Stanley cut their target price on shares of Merck & Co., Inc. from $113.00 to $106.00 and set an "equal weight" rating for the company in a research note on Wednesday, February 5th. HSBC raised 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, BMO Capital Markets reduced their price objective on Merck & Co., Inc. from $105.00 to $96.00 and set a "market perform" rating for the company in a report on Wednesday, February 5th. Eleven equities research analysts have rated the stock with a hold rating, nine have assigned a buy rating and three have issued a strong buy rating to the company's stock. According to data from MarketBeat.com, Merck & Co., Inc. currently has an average rating of "Moderate Buy" and a consensus price target of $117.12.

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Merck & Co., Inc. Trading Down 0.3 %

The firm has a 50-day moving average of $93.66 and a two-hundred day moving average of $102.14. The firm has a market capitalization of $238.55 billion, a P/E ratio of 14.03, a P/E/G ratio of 0.77 and a beta of 0.35. 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. (NYSE:MRK - Get Free Report) last released its quarterly earnings data on Tuesday, February 4th. The company reported $1.72 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 analyst estimates of $15.51 billion. During the same quarter in the prior year, the company earned $0.03 earnings per share. Merck & Co., Inc.'s revenue for the quarter was up 6.8% compared to the same quarter last year. On average, analysts anticipate that Merck & Co., Inc. will post 9.01 EPS 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. Shareholders of record on Monday, March 17th will be given a $0.81 dividend. The ex-dividend date of this dividend is Monday, March 17th. This represents a $3.24 annualized dividend and a yield of 3.43%. Merck & Co., Inc.'s dividend payout ratio is presently 48.14%.

Merck & Co., Inc. declared that its board has initiated a stock buyback plan 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 shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Insider Activity at Merck & Co., Inc.

In other news, Director Inge G. Thulin purchased 2,833 shares of the business's stock in a transaction on Thursday, February 6th. The shares were acquired at an average price of $88.25 per share, with a total value 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. The trade was a 2,833.00 % increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Cristal N. Downing sold 2,361 shares of the company's stock in a transaction dated Thursday, February 6th. The shares were 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 disclosure for this sale can be found here. 0.09% of the stock is owned by company insiders.

Institutional Investors Weigh In On Merck & Co., Inc.

Hedge funds have recently added to or reduced their stakes in the company. Midwest Capital Advisors LLC acquired a new position in shares of Merck & Co., Inc. during the fourth quarter valued at about $26,000. Financial Life Planners purchased a new stake in shares of Merck & Co., Inc. in the fourth quarter worth approximately $28,000. Noble Wealth Management PBC bought a new position in shares of Merck & Co., Inc. in the fourth quarter valued at approximately $28,000. Halbert Hargrove Global Advisors LLC purchased a new position in shares of Merck & Co., Inc. during the fourth quarter valued at approximately $28,000. Finally, Promus Capital LLC bought a new stake in Merck & Co., Inc. during the fourth quarter worth $30,000. Institutional investors and hedge funds 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.

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