Merck & Co., Inc. (NYSE:MRK) Sets New 1-Year Low - Here's Why
Merck & Co., Inc. (NYSE:MRK) shares hit a new 52-week low at $75.82, closing at $75.88 with a trading volume of over 15 million shares. Analysts have downgraded the stock, with Deutsche Bank lowering its rating from "buy" to "hold" and reducing the price target from $128 to $105. The company reported $2.22 EPS, exceeding estimates, but revenue fell 1.6% year-over-year. Merck has initiated a $10 billion stock repurchase plan, indicating management believes shares are undervalued. Insider selling and new institutional investments were also noted.
Merck & Co., Inc. (NYSE:MRK - Get Free Report) shares reached a new 52-week low on Saturday . The company traded as low as $75.82 and last traded at $75.88, with a volume of 15605903 shares. The stock had previously closed at $77.65.
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Wall Street Analysts Forecast Growth
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Several equities research analysts have issued reports on the stock. Deutsche Bank Aktiengesellschaft lowered shares of Merck & Co., Inc. from a "buy" rating to a "hold" rating and lowered their price target for the company from $128.00 to $105.00 in a report on Tuesday, February 18th. TD Securities lowered shares of Merck & Co., Inc. from a "buy" rating to a "hold" rating and dropped their price target for the stock from $121.00 to $100.00 in a research report on Monday, February 10th. Bank of America decreased their price objective on Merck & Co., Inc. from $118.00 to $112.00 and set a "buy" rating on the stock in a report on Wednesday, February 5th. Leerink Partners dropped their target price on Merck & Co., Inc. from $136.00 to $119.00 and set an "outperform" rating for the company in a report on Monday, January 13th. Finally, StockNews.com lowered Merck & Co., Inc. from a "strong-buy" rating to a "buy" rating in a research note on Friday, April 25th. Twelve analysts have rated the stock with a hold rating, eight have issued a buy rating and three have assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $111.13.
Check Out Our Latest Analysis on MRK
Merck & Co., Inc. Price Performance
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The stock's 50-day moving average price is $85.27 and its 200-day moving average price is $93.31. The company has a market capitalization of $190.54 billion, a price-to-earnings ratio of 11.27, a price-to-earnings-growth ratio of 0.77 and a beta of 0.43. The company has a quick ratio of 1.15, a current ratio of 1.36 and a debt-to-equity ratio of 0.79.
Merck & Co., Inc. (NYSE:MRK - Get Free Report) last posted its quarterly earnings data on Thursday, April 24th. The company reported $2.22 earnings per share for the quarter, topping the consensus estimate of $2.16 by $0.06. The firm had revenue of $15.53 billion during the quarter, compared to analysts' expectations of $15.59 billion. Merck & Co., Inc. had a net margin of 26.67% and a return on equity of 45.35%. Merck & Co., Inc.'s revenue was down 1.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.07 EPS. Equities research analysts anticipate that Merck & Co., Inc. will post 9.01 earnings per share for the current year.
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Merck & Co., Inc. declared that its board has initiated a stock repurchase 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 stock through open market purchases. Stock repurchase plans are typically an indication that the company's leadership believes its shares are undervalued.
Insider Buying and Selling
In other news, SVP Dalton E. Smart III sold 4,262 shares of the firm's stock in a transaction dated Friday, April 25th. The shares were sold at an average price of $82.76, for a total value of $352,723.12. Following the transaction, the senior vice president now owns 7,778 shares of the company's stock, valued at approximately $643,707.28. This trade represents a 35.40 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.13% of the company's stock.
Hedge Funds Weigh In On Merck & Co., Inc.
Large investors have recently bought and sold shares of the business. Midwest Capital Advisors LLC acquired a new stake in shares of Merck & Co., Inc. during the fourth quarter worth $26,000. Barnes Dennig Private Wealth Management LLC bought a new position in Merck & Co., Inc. during the first quarter worth about $27,000. Financial Life Planners acquired a new position in shares of Merck & Co., Inc. during the 4th quarter worth about $28,000. Noble Wealth Management PBC bought a new stake in shares of Merck & Co., Inc. in the 4th quarter valued at about $28,000. Finally, Halbert Hargrove Global Advisors LLC acquired a new stake in shares of Merck & Co., Inc. in the 4th quarter valued at approximately $28,000. 76.07% of the stock is currently owned by institutional investors and hedge funds.
Merck & Co., Inc. Company Profile
(Get Free Report)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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