Merck & Co., Inc. (NYSE:MRK) Trading Down 1.9% - Here's Why

Merck & Co., Inc. (NYSE:MRK - Get Free Report) shares fell 1.9% on Wednesday . The company traded as low as $89.42 and last traded at $89.69. 3,357,236 shares changed hands during mid-day trading, a decline of 78% from the average session volume of 15,127,128 shares. The stock had previously closed at $91.43.

Analyst Ratings Changes

A number of brokerages recently weighed in on MRK. Bank of America lowered their target price on shares of Merck & Co., Inc. from $118.00 to $112.00 and set a "buy" rating on the stock in a research note on Wednesday, February 5th. Truist Financial reaffirmed a "hold" rating and issued a $110.00 target price (down from $130.00) on shares of Merck & Co., Inc. in a research note on Wednesday, January 8th. TD Cowen downgraded shares of Merck & Co., Inc. from a "buy" rating to a "hold" rating and decreased their price target for the stock from $121.00 to $100.00 in a research note on Monday, February 10th. TD Securities downgraded shares of Merck & Co., Inc. from a "buy" rating to a "hold" rating and decreased their price target for the stock from $121.00 to $100.00 in a research note on Monday, February 10th. Finally, Leerink Partners decreased their price target on shares of Merck & Co., Inc. from $136.00 to $119.00 and set an "outperform" rating on the stock in a research note on Monday, January 13th. One equities research analyst has rated the stock with a sell rating, eleven have issued a hold rating, nine have issued a buy rating and three have issued a strong buy rating to the stock. According to data from MarketBeat.com, Merck & Co., Inc. presently has an average rating of "Moderate Buy" and a consensus target price of $116.39.

Merck & Co., Inc. Trading Up 1.8 %

The company has a debt-to-equity ratio of 0.79, a current ratio of 1.36 and a quick ratio of 1.15. The firm's 50 day moving average is $94.63 and its 200 day moving average is $103.37. The company has a market capitalization of $232.98 billion, a PE ratio of 13.70, a P/E/G ratio of 0.77 and a beta of 0.38.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last issued its earnings results on Tuesday, February 4th. The company reported $1.72 EPS for the quarter, missing the consensus estimate of $1.85 by ($0.13). The firm had revenue of $15.62 billion during the quarter, compared to analysts' expectations of $15.51 billion. Merck & Co., Inc. had a return on equity of 45.35% and a net margin of 26.67%. The firm's quarterly revenue was up 6.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.03 earnings per share. As a group, equities analysts predict that Merck & Co., Inc. will post 9.01 EPS for the current year.

Merck & Co., Inc. Announces Dividend

The business also recently declared 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 annualized dividend and a yield of 3.51%. The ex-dividend date of this dividend is Monday, March 17th. Merck & Co., Inc.'s dividend payout ratio (DPR) is currently 48.14%.

Merck & Co., Inc. announced that its board has authorized a stock repurchase plan on Tuesday, January 28th that authorizes the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization authorizes the company to buy up to 4.1% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's leadership believes its stock is undervalued.

Insider Activity at Merck & Co., Inc.

In related news, insider Cristal N. Downing sold 2,361 shares of Merck & Co., Inc. stock in a transaction on 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 $628,864.60. The trade was a 24.99 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Inge G. Thulin purchased 2,833 shares of the business's stock in a transaction that occurred on Thursday, February 6th. The stock was bought at an average price of $88.25 per share, for a total transaction of $250,012.25. Following the acquisition, 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. 0.09% of the stock is currently owned by company insiders.

Institutional Trading of Merck & Co., Inc.

A number of hedge funds have recently modified their holdings of the business. BridgePort Financial Solutions LLC bought a new stake in shares of Merck & Co., Inc. during the 4th quarter valued at $613,000. Park Square Financial Group LLC bought a new stake in shares of Merck & Co., Inc. during the 4th quarter valued at $373,000. Total Wealth Planning & Management Inc. bought a new stake in shares of Merck & Co., Inc. during the 4th quarter valued at $203,000. Menard Financial Group LLC boosted its holdings in shares of Merck & Co., Inc. by 7.6% during the 4th quarter. Menard Financial Group LLC now owns 3,087 shares of the company's stock valued at $307,000 after buying an additional 218 shares in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH bought a new stake in shares of Merck & Co., Inc. during the 4th quarter valued at $218,020,000. 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.