Merck & Co., Inc. (NYSE:MRK) Shares Down 4.9% - Here's Why

Merck & Co., Inc. (NYSE:MRK - Get Free Report) traded down 4.9% on Thursday . The company traded as low as $77.64 and last traded at $77.87. 3,365,543 shares changed hands during mid-day trading, a decline of 70% from the average session volume of 11,387,816 shares. The stock had previously closed at $81.91.

Analyst Ratings Changes

A number of brokerages recently commented on MRK. TD Securities downgraded shares of Merck & Co., Inc. from a "buy" rating to a "hold" rating and lowered their price target for the company from $121.00 to $100.00 in a report on Monday, February 10th. Bank of America reduced their target price on 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 reissued a "hold" rating and set a $110.00 price objective (down from $130.00) on shares of Merck & Co., Inc. in a report on Wednesday, January 8th. Citigroup dropped their price objective on Merck & Co., Inc. from $125.00 to $115.00 and set a "buy" rating on the stock in a research report on Wednesday, February 5th. Finally, Morgan Stanley decreased 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 report on Wednesday, February 5th. Eleven research analysts have rated the stock with a hold rating, eight have assigned a buy rating and three have assigned a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $115.50.

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Merck & Co., Inc. Price Performance

The stock has a fifty day moving average of $88.43 and a two-hundred day moving average of $97.28. 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 stock has a market capitalization of $199.56 billion, a price-to-earnings ratio of 11.74, a PEG ratio of 0.77 and a beta of 0.40.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last released 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 during the quarter, compared to the consensus estimate of $15.51 billion. Merck & Co., Inc. had a net margin of 26.67% and a return on equity of 45.35%. The company's revenue for the quarter was up 6.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.03 EPS. As a group, equities research analysts forecast that Merck & Co., Inc. will post 9.01 earnings per share for the current year.

Merck & Co., Inc. Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, April 7th. Shareholders of record on Monday, March 17th were given a dividend of $0.81 per share. The ex-dividend date was Monday, March 17th. This represents a $3.24 dividend on an annualized basis and a yield of 4.10%. Merck & Co., Inc.'s dividend payout ratio (DPR) is 48.14%.

Merck & Co., Inc. declared that its Board of Directors has authorized a stock buyback plan on Tuesday, January 28th that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the company to repurchase up to 4.1% of its shares through open market purchases. Shares repurchase plans are generally a sign 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 Merck & Co., Inc. stock in a transaction dated Thursday, February 6th. The stock was sold at an average price of $88.76, for a total value of $209,562.36. Following the completion of 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 position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 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, with a total value of $250,012.25. Following the completion of the acquisition, the director now directly owns 2,933 shares in the company, 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. Corporate insiders own 0.09% of the company's stock.

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

A number of large investors have recently modified their holdings of the company. Franklin Resources Inc. grew its stake in Merck & Co., Inc. by 12.9% in the 3rd quarter. Franklin Resources Inc. now owns 16,049,161 shares of the company's stock worth $1,759,800,000 after buying an additional 1,836,505 shares in the last quarter. Janney Montgomery Scott LLC increased its holdings in Merck & Co., Inc. by 1.9% during the 4th quarter. Janney Montgomery Scott LLC now owns 1,902,509 shares of the company's stock valued at $189,262,000 after purchasing an additional 35,525 shares during the period. Napatree Capital LLC grew its position in shares of Merck & Co., Inc. by 13.0% in the 4th quarter. Napatree Capital LLC now owns 4,220 shares of the company's stock worth $420,000 after buying an additional 485 shares during the last quarter. Littlejohn Financial Services Inc. bought a new position in Merck & Co., Inc. in the 4th quarter worth $2,080,000. Finally, Nordea Investment Management AB boosted its position in Merck & Co., Inc. by 4.7% during the 4th quarter. Nordea Investment Management AB now owns 9,399,643 shares of the company's stock valued at $933,761,000 after acquiring an additional 422,382 shares in the last quarter. 76.07% of the stock is currently owned by institutional investors.

About Merck & Co., Inc.

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.