Merck & Co., Inc. (NYSE:MRK) Stock Price Up 2.2% - Here's Why

Shares of Merck & Co., Inc. (NYSE:MRK - Get Free Report) shot up 2.2% during trading on Friday . The company traded as high as $89.31 and last traded at $89.56. 2,766,673 shares changed hands during mid-day trading, a decline of 73% from the average session volume of 10,273,658 shares. The stock had previously closed at $87.60.

Wall Street Analyst Weigh In

Several brokerages have commented on MRK. Guggenheim cut their price target on shares of Merck & Co., Inc. from $122.00 to $115.00 and set a "buy" rating on the stock in a research report on Wednesday, February 12th. TD Securities downgraded Merck & Co., Inc. from a "buy" rating to a "hold" rating and lowered their target price for the company from $121.00 to $100.00 in a research report on Monday, February 10th. BMO Capital Markets reduced their price target on Merck & Co., Inc. from $105.00 to $96.00 and set a "market perform" rating for the company in a research report on Wednesday, February 5th. TD Cowen downgraded Merck & Co., Inc. from a "buy" rating to a "hold" rating and decreased their price target for the company from $121.00 to $100.00 in a research note on Monday, February 10th. Finally, 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. Eleven investment 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 MarketBeat.com, Merck & Co., Inc. currently has an average rating of "Moderate Buy" and an average target price of $117.12.

Merck & Co., Inc. Trading Up 0.6 %

The business has a fifty day moving average price of $91.92 and a 200-day moving average price of $100.00. 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 company has a market cap of $226.69 billion, a P/E ratio of 13.33, a PEG ratio of 0.77 and a beta of 0.35.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last released its quarterly earnings results on Tuesday, February 4th. The company reported $1.72 earnings per share (EPS) 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 firm had revenue of $15.62 billion during the quarter, compared to the consensus estimate of $15.51 billion. During the same quarter last year, the firm earned $0.03 earnings per share. The business's revenue for the quarter was up 6.8% compared to the same quarter last year. On average, analysts forecast that Merck & Co., Inc. will post 9.01 earnings per share for the current year.

Merck & Co., Inc. Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, April 7th. Investors of record on Monday, March 17th will be paid a $0.81 dividend. The ex-dividend date of this dividend is Monday, March 17th. This represents a $3.24 annualized dividend and a dividend yield of 3.61%. Merck & Co., Inc.'s dividend payout ratio (DPR) is presently 48.14%.

Merck & Co., Inc. announced that its Board of Directors has authorized a stock repurchase program on Tuesday, January 28th that allows the company to repurchase $10.00 billion in shares. This repurchase authorization allows the company to buy up to 4.1% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Merck & Co., Inc.

In related news, Director Inge G. Thulin acquired 2,833 shares of the company's stock in a transaction on Thursday, February 6th. The stock was purchased at an average cost of $88.25 per share, with a total value of $250,012.25. Following the acquisition, the director now directly owns 2,933 shares of the company's stock, valued at approximately $258,837.25. The trade was a 2,833.00 % increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Cristal N. Downing sold 2,361 shares of the company's 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 of the company's stock, valued at approximately $628,864.60. The trade was a 24.99 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.09% of the company's stock.

Hedge Funds Weigh In On Merck & Co., Inc.

Hedge funds have recently bought and sold shares of the company. Mascagni Wealth Management Inc. acquired a new stake in shares of Merck & Co., Inc. during the 4th quarter worth approximately $76,000. Chancellor Financial Group WB LP acquired a new position in Merck & Co., Inc. during the 4th quarter worth approximately $561,000. 111 Capital bought a new position in Merck & Co., Inc. in the 4th quarter valued at approximately $874,000. Wealth Enhancement Advisory Services LLC boosted its position in Merck & Co., Inc. by 17.5% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 1,560,491 shares of the company's stock valued at $155,238,000 after buying an additional 231,927 shares in the last quarter. Finally, NorthCrest Asset Manangement LLC boosted its position in Merck & Co., Inc. by 3.8% in the fourth quarter. NorthCrest Asset Manangement LLC now owns 141,377 shares of the company's stock valued at $14,064,000 after buying an additional 5,150 shares in the last quarter. 76.07% of the stock is owned by institutional investors.

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.