Merck & Co., Inc. (NYSE:MRK) Shares Up 2.1% Following Analyst Upgrade

Shares of Merck & Co., Inc. (NYSE:MRK) rose 2.1% on Thursday after Wolfe Research upgraded the stock from a peer perform rating to an outperform rating. Wolfe Research now has a $135.00 price target on the stock. Merck & Co., Inc. traded as high as $112.90 and last traded at $110.9050. Approximately 20,250,006 shares changed hands during trading, an increase of 32% from the average daily volume of 15,370,615 shares. The stock had previously closed at $108.60.

A number of other research firms have also recently weighed in on MRK. Citigroup increased their price objective on shares of Merck & Co., Inc. from $95.00 to $110.00 and gave the stock a “neutral” rating in a research report on Wednesday. The Goldman Sachs Group upped their price target on Merck & Co., Inc. from $92.00 to $120.00 and gave the stock a “buy” rating in a research note on Tuesday, December 2nd. Berenberg Bank cut Merck & Co., Inc. from a “buy” rating to a “hold” rating and dropped their price objective for the company from $100.00 to $90.00 in a research note on Wednesday, September 17th. UBS Group increased their target price on Merck & Co., Inc. from $105.00 to $130.00 and gave the stock a “buy” rating in a research note on Wednesday. Finally, Wall Street Zen upgraded Merck & Co., Inc. from a “hold” rating to a “strong-buy” rating in a report on Saturday, November 8th. Nine research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Merck & Co., Inc. presently has a consensus rating of “Hold” and a consensus price target of $113.25.

Insider Activity

In other Merck & Co., Inc. news, EVP David Michael Williams sold 8,614 shares of the company’s stock in a transaction dated Monday, November 3rd. The stock was sold at an average price of $83.59, for a total transaction of $720,044.26. Following the sale, the executive vice president owned 24,578 shares in the company, valued at $2,054,475.02. This represents a 25.95% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 0.13% of the company’s stock.

Merck & Co., Inc. News Roundup

Here are the key news stories impacting Merck & Co., Inc. this week:

• Positive Sentiment: Merck is reported to be in talks to acquire Revolution Medicines in a deal that could value the biotech at roughly $30 billion — a move that would materially bolster Merck’s oncology pipeline and justify a strategic premium in the stock if completed. Read More.
• Positive Sentiment: Multiple analysts turned more bullish this week: Wolfe Research upgraded MRK to Outperform with a $135 target and Scotiabank reaffirmed a Buy — plus Citi and UBS published forecasts calling for strong upside. These upgrades/support raise positive sentiment and could attract buying interest. Read More. Read More. Read More.
• Positive Sentiment: Healthcare sector momentum and positive coverage on Merck’s growth profile (Zacks/MarketBeat pieces) are supporting the stock as investors rotate back into defensive, value-priced pharma names. This macro tailwind can amplify positive reactions to company-specific news. Read More.
• Neutral Sentiment: The JPMorgan Healthcare Conference is underway and is expected to generate pipeline updates and potential M&A announcements across the sector; this adds event-driven volatility to MRK in the near term rather than a clear directional signal. Read More.
• Neutral Sentiment: Merck publicly urged that U.S. childhood immunization schedule changes be grounded in comprehensive data after the CDC trimmed some recommendations — a policy debate that creates uncertainty around vaccine-related revenues but is not an immediate earnings shock. Read More.
• Neutral Sentiment: Multiple outlets (FT, Zacks) echoed the Revolution Medicines talks; until a deal is announced, takeover reports typically produce short-term swings as investors weigh strategic upside vs. deal risk and price. Read More.

Institutional Trading of Merck & Co., Inc.

A number of large investors have recently made changes to their positions in the company. Pine Haven Investment Counsel Inc increased its position in shares of Merck & Co., Inc. by 0.7% in the 4th quarter. Pine Haven Investment Counsel Inc now owns 14,137 shares of the company’s stock valued at $1,488,000 after purchasing an additional 105 shares during the last quarter. Lake Street Private Wealth LLC grew its stake in shares of Merck & Co., Inc. by 2.1% during the fourth quarter. Lake Street Private Wealth LLC now owns 5,203 shares of the company’s stock worth $548,000 after purchasing an additional 109 shares in the last quarter. One Charles Private Wealth Services LLC grew its stake in shares of Merck & Co., Inc. by 3.3% during the third quarter. One Charles Private Wealth Services LLC now owns 3,464 shares of the company’s stock worth $291,000 after purchasing an additional 111 shares in the last quarter. Fragasso Financial Advisors Inc increased its holdings in Merck & Co., Inc. by 1.0% in the fourth quarter. Fragasso Financial Advisors Inc now owns 11,502 shares of the company’s stock valued at $1,211,000 after buying an additional 115 shares during the last quarter. Finally, Dakota Community Bank & Trust NA raised its stake in Merck & Co., Inc. by 3.4% in the third quarter. Dakota Community Bank & Trust NA now owns 3,566 shares of the company’s stock valued at $299,000 after buying an additional 116 shares in the last quarter. 76.07% of the stock is currently owned by hedge funds and other institutional investors.

Merck & Co., Inc. Price Performance

The company has a market capitalization of $274.31 billion, a PE ratio of 14.60, a P/E/G ratio of 1.13 and a beta of 0.29. The company has a current ratio of 1.66, a quick ratio of 1.44 and a debt-to-equity ratio of 0.77. The stock has a fifty day simple moving average of $99.60 and a 200-day simple moving average of $88.98.

Merck & Co., Inc. (NYSE:MRK) last released its quarterly earnings data on Tuesday, February 3rd. The company reported $1.94 EPS for the quarter, missing analysts’ consensus estimates of $2.08 by ($0.14). Merck & Co., Inc. had a net margin of 29.63% and a return on equity of 44.54%. Equities analysts anticipate that Merck & Co., Inc. will post 9.01 earnings per share for the current year.

Merck & Co., Inc. Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, January 8th. Shareholders of record on Monday, December 15th were issued a dividend of $0.85 per share. The ex-dividend date of this dividend was Monday, December 15th. This is an increase from Merck & Co., Inc.’s previous quarterly dividend of $0.81. This represents a $3.40 dividend on an annualized basis and a yield of 3.1%. Merck & Co., Inc.’s dividend payout ratio is 44.91%.

About Merck & Co., Inc.

Merck & Co, Inc is a global biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines, vaccines, biologic therapies and animal health products. Its portfolio spans multiple therapeutic areas with a particular emphasis on oncology, vaccines and infectious disease, as well as therapies for metabolic and chronic conditions. Among its well-known products are the cancer immunotherapy Keytruda (pembrolizumab) and the human papillomavirus vaccine Gardasil; the company also markets a range of medicines and vaccines for veterinary use through Merck Animal Health.

Founded in the late 19th century as the U.S.