Merck & Co., Inc. (NYSE:MRK) Stock Price Up 1.5% - Should You Buy?

Merck & Co., Inc. (NYSE:MRK - Get Free Report) shares were up 1.5% during trading on Wednesday . The company traded as high as $84.65 and last traded at $84.53. Approximately 3,770,849 shares were traded during mid-day trading, a decline of 75% from the average daily volume of 14,816,002 shares. The stock had previously closed at $83.29.

Wall Street Analyst Weigh In

A number of research analysts have commented on MRK shares. Hsbc Global Res upgraded Merck & Co., Inc. from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, December 4th. HSBC upgraded Merck & Co., Inc. from a "hold" rating to a "buy" rating and set a $130.00 price target on the stock in a research report on Wednesday, December 4th. Leerink Partners reduced their price target 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. Deutsche Bank Aktiengesellschaft lowered Merck & Co., Inc. from a "buy" rating to a "hold" rating and reduced their price target for the stock from $128.00 to $105.00 in a research report on Tuesday. Finally, Wolfe Research initiated coverage on Merck & Co., Inc. in a research report on Friday, November 15th. They issued a "peer perform" rating on the stock. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating, nine have issued a buy rating and three have assigned a strong buy rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $116.39.

Merck & Co., Inc. Price Performance

The company has a 50 day simple moving average of $95.46 and a 200-day simple moving average of $104.21. The stock has a market cap of $226.14 billion, a price-to-earnings ratio of 13.28, a P/E/G ratio of 0.73 and a beta of 0.38. The company has a current ratio of 1.36, a quick ratio of 1.15 and a debt-to-equity ratio of 0.79.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last released its quarterly 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). Merck & Co., Inc. had a net margin of 26.67% and a return on equity of 45.35%. The firm had revenue of $15.62 billion during the quarter, compared to analyst estimates of $15.51 billion. During the same period in the prior year, the business earned $0.03 EPS. The business's revenue for the quarter was up 6.8% compared to the same quarter last year. Research analysts expect that Merck & Co., Inc. will post 9.01 EPS for the current year.

Merck & Co., Inc. Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, April 7th. Shareholders of record on Monday, March 17th will be paid a $0.81 dividend. This represents a $3.24 annualized dividend and a dividend yield of 3.62%. 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 initiated a stock buyback plan on Tuesday, January 28th that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the company to reacquire up to 4.1% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Merck & Co., Inc.

In related 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 sale, the insider now owns 7,085 shares of the company's stock, valued at approximately $628,864.60. The trade was a 24.99 % decrease in their ownership of the stock. 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 bought 2,833 shares of the stock in a transaction that occurred on Thursday, February 6th. The stock was bought at an average cost of $88.25 per share, for a total transaction of $250,012.25. Following the transaction, 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 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.

A number of hedge funds and other institutional investors have recently modified their holdings of MRK. Norges Bank acquired a new stake in shares of Merck & Co., Inc. in the fourth quarter valued at about $3,479,799,000. Bank of New York Mellon Corp increased its position in Merck & Co., Inc. by 29.7% during 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 buying an additional 5,550,824 shares during the last quarter. Wellington Management Group LLP increased its position in Merck & Co., Inc. by 6.5% during the fourth quarter. Wellington Management Group LLP now owns 80,742,030 shares of the company's stock worth $8,032,217,000 after buying an additional 4,932,647 shares during the last quarter. Northern Trust Corp increased its position in Merck & Co., Inc. by 16.8% during the fourth quarter. Northern Trust Corp now owns 31,377,107 shares of the company's stock worth $3,121,395,000 after buying an additional 4,511,742 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its position in Merck & Co., Inc. by 63.1% during the fourth quarter. Dimensional Fund Advisors LP now owns 11,577,535 shares of the company's stock worth $1,151,642,000 after buying an additional 4,480,007 shares during the last quarter. Institutional investors and hedge funds 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.