Merck & Co., Inc. (NYSE:MRK) Stock Price Target Lowered at Morgan Stanley

Key Points

• Morgan Stanley lowered Merck’s price target from $179 to $177 while maintaining an “overweight” rating, implying approximately 23.5% upside from the stock’s $143.27 price.
• Analyst sentiment remains favorable overall: 17 analysts rate Merck a Buy and 10 a Hold, producing a “Moderate Buy” consensus rating and an average target price of $148.80.
• Merck shares rose 0.9% to $143.27, while the company’s latest quarterly results beat expectations on both earnings and revenue; however, insiders sold roughly $30 million of stock over the past 90 days.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) had its price target dropped by analysts at Morgan Stanley from $179.00 to $177.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Morgan Stanley's target price suggests a potential upside of 23.54% from the stock's current price.

A number of other research analysts also recently weighed in on the stock. Jefferies Financial Group raised their price target on shares of Merck & Co., Inc. from $152.00 to $175.00 and gave the company a "buy" rating in a report on Thursday, August 20th. Daiwa Securities Group raised Merck & Co., Inc. from a "neutral" rating to an "outperform" rating and set a $143.00 price target for the company in a research report on Wednesday, August 12th. Cantor Fitzgerald reissued a "neutral" rating and set a $120.00 price objective on shares of Merck & Co., Inc. in a report on Monday, July 6th. Sanford C. Bernstein raised their price objective on Merck & Co., Inc. from $100.00 to $105.00 and gave the company a "market perform" rating in a research note on Tuesday, August 4th. Finally, HSBC boosted their target price on Merck & Co., Inc. from $150.00 to $172.00 and gave the stock a "buy" rating in a report on Thursday, September 10th. Seventeen research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $148.80.

Merck & Co., Inc. Stock Up 0.9%

Shares of Merck & Co., Inc. stock traded up $1.33 during trading on Wednesday, hitting $143.27. 1,205,330 shares of the stock traded hands, compared to its average volume of 10,646,185. The stock has a market cap of $353.48 billion, a P/E ratio of 114.68, a PEG ratio of 6.08 and a beta of 0.21. The company has a fifty day moving average price of $143.10 and a two-hundred day moving average price of $127.76. Merck & Co., Inc. has a twelve month low of $82.01 and a twelve month high of $156.92. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.10 and a current ratio of 1.32.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported ($0.13) EPS for the quarter, topping analysts' consensus estimates of ($0.26) by $0.13. The firm had revenue of $16.61 billion for the quarter, compared to the consensus estimate of $16.37 billion. Merck & Co., Inc. had a return on equity of 16.73% and a net margin of 4.77%.The firm's revenue was up 5.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.13 earnings per share. Merck & Co., Inc. has set its FY 2026 guidance at 2.660-2.760 EPS. Equities research analysts predict that Merck & Co., Inc. will post 2.76 EPS for the current fiscal year.

Insiders Place Their Bets

In other Merck & Co., Inc. news, EVP Richard R. Deluca sold 20,784 shares of the stock in a transaction on Monday, August 10th. The shares were sold at an average price of $130.43, for a total value of $2,710,857.12. Following the completion of the sale, the executive vice president directly owned 134,703 shares of the company's stock, valued at $17,569,312.29. This represents a 13.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP David Williams sold 52,847 shares of the stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $128.77, for a total transaction of $6,805,108.19. Following the completion of the sale, the executive vice president owned 31,716 shares of the company's stock, valued at approximately $4,084,069.32. The trade was a 62.49% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 228,238 shares of company stock valued at $29,977,783 in the last ninety days. Company insiders own 0.17% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of MRK. Congress Asset Management Co. boosted its position in shares of Merck & Co., Inc. by 238.9% during the 3rd quarter. Congress Asset Management Co. now owns 18,204 shares of the company's stock valued at $2,645,000 after acquiring an additional 12,833 shares in the last quarter. Byrne Asset Management LLC lifted its holdings in Merck & Co., Inc. by 3.3% during the 3rd quarter. Byrne Asset Management LLC now owns 3,127 shares of the company's stock valued at $450,000 after purchasing an additional 100 shares during the last quarter. Horizons Wealth Management bought a new position in Merck & Co., Inc. during the 3rd quarter valued at about $30,000. Baker Tilly Wealth Management LLC boosted its holdings in shares of Merck & Co., Inc. by 7.6% in the 3rd quarter. Baker Tilly Wealth Management LLC now owns 4,377 shares of the company's stock worth $636,000 after acquiring an additional 310 shares in the last quarter. Finally, Eastern Bank boosted its stake in Merck & Co., Inc. by 2.2% in the third quarter. Eastern Bank now owns 195,900 shares of the company's stock worth $28,466,000 after purchasing an additional 4,140 shares in the last quarter. 76.07% of the stock is owned by institutional investors.

About Merck & Co., Inc.

Merck & Co, Inc is a global healthcare company that develops and markets prescription medicines, vaccines, and animal-health products. The company serves patients, healthcare providers, and customers in markets around the world, with research and commercial operations spanning multiple geographic regions.

Its pharmaceutical portfolio includes oncology, infectious-disease, cardiovascular, immunology, and other therapeutic areas. Key products include Keytruda, an oncology treatment; Gardasil, a human papillomavirus (HPV) vaccine; Januvia and Janumet for type 2 diabetes; Bridion for anesthesia-related use; and Winrevair for pulmonary arterial hypertension.

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