Merck & Co., Inc. (NYSE:MRK) Shares Gap Up – Here’s Why

Merck & Co., Inc. (NYSE:MRK) gapped up before the market opened on Thursday . The stock had previously closed at $86.60, but opened at $88.73. Merck & Co., Inc. shares last traded at $86.76, with a volume of 1,390,633 shares trading hands.

Analyst Ratings Changes

A number of research firms have recently issued reports on MRK. Morgan Stanley cut their price objective on Merck & Co., Inc. from $113.00 to $106.00 and set an “equal weight” rating for the company in a report on Wednesday, February 5th. Leerink Partners cut their target price on Merck & Co., Inc. from $136.00 to $119.00 and set an “outperform” rating for the company in a research note on Monday, January 13th. Citigroup decreased their price target on shares of Merck & Co., Inc. from $125.00 to $115.00 and set a “buy” rating on the stock in a research note on Wednesday, February 5th. UBS Group reduced their target price on shares of Merck & Co., Inc. from $125.00 to $120.00 and set a “buy” rating on the stock in a report on Wednesday, January 8th. Finally, Guggenheim lowered their price target on shares of Merck & Co., Inc. from $122.00 to $115.00 and set a “buy” rating for the company in a research note on Wednesday, February 12th. Eleven research analysts have rated the stock with a hold rating, nine have issued a buy rating and three have issued a strong buy rating to the company’s stock. According to data from MarketBeat, Merck & Co., Inc. currently has a consensus rating of “Moderate Buy” and an average target price of $117.12.

Merck & Co., Inc. Price Performance

The company has a market cap of $221.38 billion, a PE ratio of 13.02, a PEG ratio of 0.77 and a beta of 0.40. The firm’s 50-day moving average is $91.39 and its 200-day moving average is $99.53. 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) 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). Merck & Co., Inc. had a return on equity of 45.35% and a net margin of 26.67%. The business had revenue of $15.62 billion during the quarter, compared to analysts’ expectations of $15.51 billion. During the same period in the prior year, the company earned $0.03 earnings per share. The firm’s quarterly revenue was up 6.8% compared to the same quarter last year. On average, equities analysts anticipate that Merck & Co., Inc. will post 9.01 EPS for the current year.

Merck & Co., Inc. Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, April 7th. Investors of record on Monday, March 17th will be paid a $0.81 dividend. The ex-dividend date of this dividend is Monday, March 17th. This represents a $3.24 annualized dividend and a dividend yield of 3.70%. Merck & Co., Inc.’s payout ratio is currently 48.14%.

Merck & Co., Inc. declared that its Board of Directors has initiated a share buyback plan on Tuesday, January 28th that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the company to reacquire up to 4.1% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In other 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 completion of the transaction, the insider now owns 7,085 shares of the company’s stock, valued at $628,864.60. The trade was a 24.99 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Inge G. Thulin acquired 2,833 shares of the business’s stock in a transaction that occurred on Thursday, February 6th. The shares were purchased at an average cost of $88.25 per share, for a total transaction of $250,012.25. Following the completion of the transaction, the director now directly owns 2,933 shares in the company, 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. Corporate insiders own 0.09% of the company’s stock.

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

Institutional investors and hedge funds have recently made changes to their positions in the company. Franklin Resources Inc. raised its stake in shares of Merck & Co., Inc. by 12.9% in the third quarter. Franklin Resources Inc. now owns 16,049,161 shares of the company’s stock worth $1,759,800,000 after purchasing an additional 1,836,505 shares during the last quarter. Janney Montgomery Scott LLC increased its holdings in Merck & Co., Inc. by 1.9% in the 4th quarter. Janney Montgomery Scott LLC now owns 1,902,509 shares of the company’s stock worth $189,262,000 after buying an additional 35,525 shares in the last quarter. Napatree Capital LLC raised its position in Merck & Co., Inc. by 13.0% in the 4th quarter. Napatree Capital LLC now owns 4,220 shares of the company’s stock worth $420,000 after buying an additional 485 shares during the last quarter. Littlejohn Financial Services Inc. bought a new position in Merck & Co., Inc. during the 4th quarter valued at about $2,080,000. Finally, Nordea Investment Management AB lifted its position in Merck & Co., Inc. by 4.7% during the fourth quarter. Nordea Investment Management AB now owns 9,399,643 shares of the company’s stock valued at $933,761,000 after purchasing an additional 422,382 shares during the period. Institutional investors own 76.07% of the company’s stock.

Merck & Co., Inc. Company Profile

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.