Merck & Co., Inc. (NYSE:MRK) Trading 1.6% Higher - What's Next?

Shares of Merck & Co., Inc. (NYSE:MRK - Get Free Report) were up 1.6% on Thursday . The stock traded as high as $96.34 and last traded at $94.86. Approximately 7,627,339 shares traded hands during mid-day trading, a decline of 24% from the average daily volume of 10,083,569 shares. The stock had previously closed at $93.35.

Analyst Upgrades and Downgrades

Several research firms have issued reports on MRK. Wolfe Research assumed coverage on Merck & Co., Inc. in a report on Friday, November 15th. They set a "peer perform" rating on the stock. Truist Financial restated a "hold" rating and set a $110.00 target price (down from $130.00) on shares of Merck & Co., Inc. in a research report on Wednesday, January 8th. TD Cowen cut shares of Merck & Co., Inc. from a "buy" rating to a "hold" rating and lowered their price target for the stock from $121.00 to $100.00 in a research report on Monday, February 10th. Deutsche Bank Aktiengesellschaft downgraded Merck & Co., Inc. from a "buy" rating to a "hold" rating and dropped their price objective for the company from $128.00 to $105.00 in a report on Tuesday, February 18th. Finally, UBS Group cut their price target on shares of Merck & Co., Inc. from $125.00 to $120.00 and set a "buy" rating on the stock in a research report on Wednesday, January 8th. Eleven analysts have rated the stock with a hold rating, nine have issued a buy rating and three have assigned a strong buy rating to the stock. According to data from MarketBeat, Merck & Co., Inc. presently has an average rating of "Moderate Buy" and an average target price of $117.12.

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Merck & Co., Inc. Stock Up 1.4 %

The stock has a market capitalization of $239.03 billion, a P/E ratio of 14.07, a PEG ratio of 0.77 and a beta of 0.35. The firm's 50-day simple moving average is $93.75 and its 200 day simple moving average is $102.19. The company has a debt-to-equity ratio of 0.79, a quick ratio of 1.15 and a current ratio of 1.36.

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 analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $15.51 billion. During the same quarter in the prior year, the business earned $0.03 earnings per share. The firm's revenue for the quarter was up 6.8% compared to the same quarter last year. As a group, research analysts expect that Merck & Co., Inc. will post 9.01 EPS for the current year.

Merck & Co., Inc. Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, April 7th. Stockholders of record on Monday, March 17th will be given a $0.81 dividend. The ex-dividend date is Monday, March 17th. This represents a $3.24 dividend on an annualized basis and a dividend yield of 3.42%. Merck & Co., Inc.'s payout ratio is 48.14%.

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

Insiders Place Their Bets

In other news, insider Cristal N. Downing sold 2,361 shares of the firm's 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 approximately $628,864.60. This trade represents a 24.99 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Inge G. Thulin acquired 2,833 shares of the stock in a transaction on Thursday, February 6th. The shares were bought at an average price of $88.25 per share, for a total transaction of $250,012.25. Following the purchase, the director now owns 2,933 shares in the company, valued at approximately $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. Company insiders own 0.09% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Norges Bank bought a new stake in shares of Merck & Co., Inc. during the fourth quarter worth about $3,479,799,000. Bank of New York Mellon Corp grew its stake in shares of Merck & Co., Inc. by 29.7% in the fourth quarter. Bank of New York Mellon Corp now owns 24,213,537 shares of the company's stock worth $2,408,763,000 after purchasing an additional 5,550,824 shares during the last quarter. Wellington Management Group LLP increased its holdings in Merck & Co., Inc. by 6.5% in the fourth quarter. Wellington Management Group LLP now owns 80,742,030 shares of the company's stock valued at $8,032,217,000 after purchasing an additional 4,932,647 shares during the period. Northern Trust Corp raised its position in Merck & Co., Inc. by 16.8% during the 4th quarter. Northern Trust Corp now owns 31,377,107 shares of the company's stock worth $3,121,395,000 after purchasing an additional 4,511,742 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its position in Merck & Co., Inc. by 63.1% during the 4th 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. 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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