Investment firm 17 Capital Partners LLC increased its holdings in shares of Merck & Co., Inc. (NYSE: MRK) by 13.9% during the second quarter of 2023, as detailed in a recent filing with the Securities & Exchange Commission. The firm acquired an additional 930 shares, bringing its total to 7,635 shares, which were valued at approximately $604,000 at the end of the reporting period.
Several other institutional investors have also adjusted their positions in Merck recently. Notably, Winnow Wealth LLC initiated a new position valued at about $45,000 during the same quarter. NFP Retirement Inc. raised its stake by 5.1%, now holding 7,230 shares worth $572,000 after acquiring an additional 351 shares. Furthermore, Ensign Peak Advisors Inc. boosted its holdings by 20.5%, amassing 3,151,749 shares valued at nearly $249.5 million after purchasing an additional 536,384 shares.
Moving on to insider activities, David Michael Williams, Executive Vice President of Merck, sold 8,614 shares on November 3, 2023, at an average price of $83.59, totaling over $720,000. This sale reduced his position by 25.95%, leaving him with 24,578 shares valued at approximately $2.05 million. Currently, insiders hold 0.13% of Merck’s stock.
Merck’s Current Market Status
As of Thursday, shares of Merck opened at $95.16. The company maintains a current ratio of 1.42, a quick ratio of 1.17, and a debt-to-equity ratio of 0.69. Over the past year, Merck’s stock has fluctuated between a low of $73.31 and a high of $105.07. Its 50-day moving average price stands at $85.89, while the 200-day moving average is $82.61. Merck’s market capitalization is currently $236.20 billion, with a price-to-earnings (P/E) ratio of 14.66.
On October 30, 2023, Merck reported its earnings for the quarter, announcing earnings per share (EPS) of $2.58, exceeding analysts’ expectations of $2.36 by $0.22. The company’s revenue for the quarter was $17.28 billion, surpassing the consensus estimate of $17 billion. Merck also recorded a return on equity of 41.05% and a net margin of 25.79%, with quarterly revenue rising by 3.7% year-over-year. For the fiscal year 2025, Merck has set its EPS guidance between $8.930 and $8.980.
Dividend Increase and Analyst Ratings
In a positive development for shareholders, Merck recently announced a quarterly dividend of $0.85, set to be paid on January 8, 2024. Shareholders of record as of December 15, 2023, will receive this dividend, which represents an increase from the previous quarterly rate of $0.81. This translates to an annualized dividend of $3.40 and a yield of 3.6%, with a payout ratio of 42.80%.
Analysts are actively discussing Merck’s stock performance. Scotiabank recently began coverage, issuing a “sector outperform” rating with a price target of $105.00. Meanwhile, Morgan Stanley raised its target from $98.00 to $100.00, maintaining an “equal weight” rating. Other firms, including Wells Fargo & Company, have adjusted their targets, with Wells Fargo lowering its estimate from $97.00 to $90.00.
Overall, analysts suggest a mixed outlook for Merck, with two rating it as a “strong buy,” five as a “buy,” ten as a “hold,” and one as a “sell.” The consensus rating stands at “hold,” with an average price target of $104.88.
Merck & Co., Inc. continues to be a significant player in the health care sector, focusing on prescription medicines, vaccines, and biologic therapies, with operations spanning pharmaceutical and animal health products.
