Merck & Co., Inc. (NYSE:MRK) Hits New 1-Year Low – Here’s Why

Merck & Co., Inc. (NYSE:MRK)’s stock price reached a new 52-week low during trading on Monday . The stock traded as low as $79.30 and last traded at $79.85, with a volume of 2318780 shares traded. The stock had previously closed at $81.47.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the stock. Leerink Partners cut their price target on shares of Merck & Co., Inc. from $136.00 to $119.00 and set an “outperform” rating on the stock in a report on Monday, January 13th. 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 report on Wednesday, February 5th. Deutsche Bank Aktiengesellschaft downgraded Merck & Co., Inc. from a “buy” rating to a “hold” rating and cut their price target for the company from $128.00 to $105.00 in a research note on Tuesday, February 18th. Citigroup lowered their price target on Merck & Co., Inc. from $125.00 to $115.00 and set a “buy” rating for the company in a research report on Wednesday, February 5th. Finally, Guggenheim reduced their price objective on shares of Merck & Co., Inc. from $122.00 to $115.00 and set a “buy” rating for the company in a research report on Wednesday, February 12th. Eleven investment analysts have rated the stock with a hold rating, eight have assigned a buy rating and three have given a strong buy rating to the stock. According to data from MarketBeat, Merck & Co., Inc. has a consensus rating of “Moderate Buy” and an average price target of $115.50.

Merck & Co., Inc. Trading Down 2.5 %

The company has a market capitalization of $194.35 billion, a PE ratio of 11.37, a PEG ratio of 0.77 and a beta of 0.40. 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 fifty day moving average of $89.80 and a two-hundred day moving average of $98.25.

Merck & Co., Inc. (NYSE:MRK) last released 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). 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 was up 6.8% on a year-over-year basis. During the same period last year, the firm posted $0.03 EPS. As a group, sell-side analysts anticipate that Merck & Co., Inc. will post 9.01 earnings per share for the current fiscal year.

Merck & Co., Inc. Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, April 7th. Stockholders of record on Monday, March 17th were paid a dividend of $0.81 per share. This represents a $3.24 dividend on an annualized basis and a dividend yield of 4.21%. The ex-dividend date was Monday, March 17th. Merck & Co., Inc.’s payout ratio is 48.14%.

Merck & Co., Inc. announced that its board has authorized a stock repurchase program on Tuesday, January 28th that authorizes the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 4.1% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s leadership believes its stock is undervalued.

Insider Activity at Merck & Co., Inc.

In other news, insider Cristal N. Downing sold 2,361 shares of the stock in a transaction on 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 directly owns 7,085 shares of the company’s stock, valued at approximately $628,864.60. This represents a 24.99 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Inge G. Thulin purchased 2,833 shares of the stock in a transaction dated Thursday, February 6th. The stock was bought at an average cost of $88.25 per share, with a total value of $250,012.25. Following the transaction, the director now owns 2,933 shares in the company, 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 owned by corporate insiders.

Institutional Investors Weigh In On Merck & Co., Inc.

Several institutional investors and 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 worth $26,000. Financial Life Planners bought a new position in shares of Merck & Co., Inc. in the 4th quarter worth approximately $28,000. Noble Wealth Management PBC bought a new position in shares of Merck & Co., Inc. in the 4th quarter worth approximately $28,000. Halbert Hargrove Global Advisors LLC purchased a new position in shares of Merck & Co., Inc. in the fourth quarter worth approximately $28,000. Finally, Promus Capital LLC bought a new stake in Merck & Co., Inc. during the fourth quarter valued at approximately $30,000. 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.