Merck & Co., Inc. (NYSE:MRK) Trading Up 0.5% - Time to Buy?

Merck & Co., Inc. (NYSE:MRK - Get Free Report)'s stock price traded up 0.5% on Monday . The company traded as high as $80.02 and last traded at $79.58. 3,403,324 shares traded hands during mid-day trading, a decline of 70% from the average session volume of 11,498,426 shares. The stock had previously closed at $79.18.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on MRK shares. BMO Capital Markets lowered 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 report on Wednesday, February 5th. TD Securities downgraded Merck & Co., Inc. from a "buy" rating to a "hold" rating and cut their target price for the company from $121.00 to $100.00 in a research note on Monday, February 10th. Guggenheim decreased their price target on Merck & Co., Inc. from $122.00 to $115.00 and set a "buy" rating for the company in a research note on Wednesday, February 12th. Bank of America dropped their price objective 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. Finally, Deutsche Bank Aktiengesellschaft lowered Merck & Co., Inc. from a "buy" rating to a "hold" rating and decreased their target price for the stock from $128.00 to $105.00 in a research report on Tuesday, February 18th. 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. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $115.50.

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Merck & Co., Inc. Stock Up 0.2 %

The company has a debt-to-equity ratio of 0.79, a quick ratio of 1.15 and a current ratio of 1.36. The company's 50-day moving average price is $88.43 and its 200 day moving average price is $97.28. The stock has a market capitalization of $200.37 billion, a P/E ratio of 11.79, a P/E/G ratio of 0.77 and a beta of 0.40.

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 for the quarter, missing analysts' consensus estimates of $1.85 by ($0.13). Merck & Co., Inc. had a return on equity of 45.35% and a net margin of 26.67%. The company had revenue of $15.62 billion for the quarter, compared to the consensus estimate of $15.51 billion. During the same quarter in the prior year, the company posted $0.03 EPS. Merck & Co., Inc.'s revenue was up 6.8% compared to the same quarter last year. As a group, equities analysts expect 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 was paid on Monday, April 7th. Investors of record on Monday, March 17th were given a $0.81 dividend. This represents a $3.24 annualized dividend and a yield of 4.08%. The ex-dividend date was Monday, March 17th. Merck & Co., Inc.'s dividend payout ratio is presently 48.14%.

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

Insiders Place Their Bets

In other news, insider Cristal N. Downing sold 2,361 shares of the firm's stock in a transaction dated Thursday, February 6th. The shares were sold at an average price of $88.76, for a total value of $209,562.36. Following the completion of the sale, the insider now owns 7,085 shares in the company, 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 Securities & Exchange Commission, 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 stock was purchased at an average cost of $88.25 per share, with a total value of $250,012.25. Following the purchase, the director now owns 2,933 shares of the company's stock, valued at $258,837.25. The trade was a 2,833.00 % increase in their ownership of the stock. The disclosure for this purchase can be found here. 0.09% of the stock is currently owned by insiders.

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

A number of hedge funds have recently added to or reduced their stakes in MRK. Midwest Capital Advisors LLC purchased a new position in shares of Merck & Co., Inc. in the 4th quarter valued at $26,000. Financial Life Planners acquired a new stake in shares of Merck & Co., Inc. in the 4th quarter worth $28,000. Noble Wealth Management PBC purchased a new stake in shares of Merck & Co., Inc. during the fourth quarter worth about $28,000. Halbert Hargrove Global Advisors LLC purchased a new stake in Merck & Co., Inc. during the 4th quarter worth approximately $28,000. Finally, Promus Capital LLC acquired a new position in shares of Merck & Co., Inc. in the 4th quarter valued at $30,000. 76.07% of the stock is currently 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.

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