Merck & Co., Inc. (NYSE:MRK) Trading Up 0% - Still a Buy?

Merck & Co., Inc. (NYSE:MRK - Get Free Report) shares shot up 0% during trading on Wednesday . The company traded as high as $95.43 and last traded at $94.76. 1,544,630 shares changed hands during mid-day trading, a decline of 84% from the average session volume of 9,951,697 shares. The stock had previously closed at $94.72.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on MRK. TD Cowen lowered Merck & Co., Inc. from a "buy" rating to a "hold" rating and dropped their price target for the company from $121.00 to $100.00 in a research report on Monday, February 10th. HSBC upgraded shares of Merck & Co., Inc. from a "hold" rating to a "buy" rating and set a $130.00 target price on the stock in a report on Wednesday, December 4th. Truist Financial reiterated a "hold" rating and issued a $110.00 price target (down from $130.00) on shares of Merck & Co., Inc. in a research note on Wednesday, January 8th. Bank of America dropped their price objective 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. Finally, BMO Capital Markets decreased their target price on shares of Merck & Co., Inc. from $105.00 to $96.00 and set a "market perform" rating for the company in a research note on Wednesday, February 5th. Eleven investment 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 company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $117.12.

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Merck & Co., Inc. Stock Performance

The business's fifty day moving average price is $93.00 and its 200-day moving average price is $101.07. The stock has a market cap of $236.03 billion, a PE ratio of 13.88, a P/E/G ratio of 0.77 and a beta of 0.35. 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 issued its 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). The company 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 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 business posted $0.03 EPS. As a group, equities research analysts forecast that Merck & Co., Inc. will post 9.01 EPS for the current fiscal year.

Merck & Co., Inc. Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, April 7th. Shareholders of record on Monday, March 17th will be issued a $0.81 dividend. This represents a $3.24 dividend on an annualized basis and a yield of 3.47%. The ex-dividend date is Monday, March 17th. Merck & Co., Inc.'s dividend payout ratio is 48.14%.

Merck & Co., Inc. announced that its board has approved a stock buyback plan on Tuesday, January 28th that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the company to buy up to 4.1% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's leadership believes its shares are undervalued.

Insider Activity

In other Merck & Co., Inc. news, Director Inge G. Thulin bought 2,833 shares of Merck & Co., Inc. stock in a transaction on Thursday, February 6th. The stock was acquired 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 owns 2,933 shares in the company, valued at approximately $258,837.25. This represents a 2,833.00 % increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Cristal N. Downing sold 2,361 shares of Merck & Co., Inc. stock in a transaction on Thursday, February 6th. The stock was 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 $628,864.60. This represents a 24.99 % decrease in their position. The disclosure for this sale can be found here. Insiders own 0.09% of the company's stock.

Institutional Trading of Merck & Co., Inc.

A number of hedge funds and other institutional investors have recently bought and sold shares of MRK. CGN Advisors LLC increased its holdings in Merck & Co., Inc. by 0.4% in the 4th quarter. CGN Advisors LLC now owns 26,969 shares of the company's stock worth $2,683,000 after acquiring an additional 102 shares in the last quarter. Cypress Wealth Services LLC boosted its position in shares of Merck & Co., Inc. by 3.1% in the fourth quarter. Cypress Wealth Services LLC now owns 3,639 shares of the company's stock worth $362,000 after purchasing an additional 111 shares during the period. TI Trust Inc. increased its stake in shares of Merck & Co., Inc. by 0.6% in the fourth quarter. TI Trust Inc. now owns 19,834 shares of the company's stock worth $1,973,000 after purchasing an additional 111 shares in the last quarter. Hengehold Capital Management LLC raised its position in shares of Merck & Co., Inc. by 0.3% during the 4th quarter. Hengehold Capital Management LLC now owns 39,989 shares of the company's stock valued at $3,978,000 after purchasing an additional 112 shares during the period. Finally, Peterson Wealth Services lifted its stake in shares of Merck & Co., Inc. by 0.5% during the 4th quarter. Peterson Wealth Services now owns 21,479 shares of the company's stock valued at $2,137,000 after buying an additional 113 shares in the last quarter. Hedge funds and other institutional investors own 76.07% of the company's stock.

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.