Merck & Co., Inc. (NYSE:MRK) Shares Down 0.7% - Here's What Happened

Merck & Co., Inc. (NYSE:MRK - Get Free Report)'s share price was down 0.7% on Tuesday . The company traded as low as $78.84 and last traded at $78.61. Approximately 3,338,724 shares changed hands during trading, a decline of 71% from the average daily volume of 11,514,668 shares. The stock had previously closed at $79.17.

Analyst Upgrades and Downgrades

MRK has been the subject of a number of research analyst reports. TD Securities downgraded shares of Merck & Co., Inc. from a "buy" rating to a "hold" rating and cut their target price for the stock from $121.00 to $100.00 in a research report on Monday, February 10th. Morgan Stanley lowered their price target on shares of Merck & Co., Inc. from $113.00 to $106.00 and set an "equal weight" rating on the stock in a report on Wednesday, February 5th. UBS Group reduced their price objective 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. Leerink Partners decreased their price objective on Merck & Co., Inc. from $136.00 to $119.00 and set an "outperform" rating on the stock in a research report on Monday, January 13th. Finally, BMO Capital Markets reduced their target price on Merck & Co., Inc. from $105.00 to $96.00 and set a "market perform" rating on the stock in a research note on Wednesday, February 5th. Eleven analysts have rated the stock with a hold rating, eight have given a buy rating and three have given a strong buy rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $115.50.

Merck & Co., Inc. Stock Performance

The company has a current ratio of 1.36, a quick ratio of 1.15 and a debt-to-equity ratio of 0.79. The company has a market capitalization of $196.53 billion, a price-to-earnings ratio of 11.58, a price-to-earnings-growth ratio of 0.77 and a beta of 0.40. The stock has a 50-day simple moving average of $87.47 and a 200-day simple moving average of $96.27.

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

Merck & Co., Inc. Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, April 7th. Shareholders of record on Monday, March 17th were given a $0.81 dividend. The ex-dividend date was Monday, March 17th. This represents a $3.24 annualized dividend and a yield of 4.16%. Merck & Co., Inc.'s dividend payout ratio (DPR) is 48.14%.

Merck & Co., Inc. announced that its Board of Directors has approved 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 reacquire up to 4.1% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other news, insider Cristal N. Downing sold 2,361 shares of the business's stock in a transaction dated 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 owns 7,085 shares in the company, valued at approximately $628,864.60. The trade was a 24.99 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Inge G. Thulin acquired 2,833 shares of the firm's stock in a transaction on Thursday, February 6th. The shares were bought 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 directly owns 2,933 shares of the company's stock, valued at approximately $258,837.25. This represents a 2,833.00 % increase in their position. The disclosure for this purchase can be found here. Company insiders own 0.09% of the company's stock.

Institutional Trading of Merck & Co., Inc.

Institutional investors have recently bought and sold shares of the business. Norges Bank acquired a new position in Merck & Co., Inc. during the fourth quarter valued at approximately $3,479,799,000. Bank of New York Mellon Corp increased its stake in shares of Merck & Co., Inc. by 29.7% in the 4th quarter. Bank of New York Mellon Corp now owns 24,213,537 shares of the company's stock valued at $2,408,763,000 after purchasing an additional 5,550,824 shares during the last quarter. Wellington Management Group LLP grew its holdings in shares of Merck & Co., Inc. by 6.5% during the 4th 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 last quarter. Northern Trust Corp lifted its stake in Merck & Co., Inc. by 16.8% in the 4th quarter. Northern Trust Corp now owns 31,377,107 shares of the company's stock valued at $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% in the fourth quarter. Dimensional Fund Advisors LP now owns 11,577,535 shares of the company's stock valued at $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.