Organon & Co. (NYSE:OGN) Stock Now Rated "Reduce" by Wall Street Analysts

Key Points

• Analyst sentiment is cautious: Organon has an average “Reduce” rating from seven brokerages—two sell ratings and five holds—with an average 12-month price target of $11.40.
• Shares traded at $13.84, above the average analyst target. The latest quarter’s EPS of $0.94 beat estimates of $0.88, while revenue of $1.57 billion came in slightly below expectations.
• The company declared a quarterly dividend of $0.02 per share, equivalent to an annualized yield of 0.6%.

Shares of Organon & Co. (NYSE:OGN - Get Free Report) have earned an average recommendation of "Reduce" from the seven brokerages that are presently covering the firm, Marketbeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation and five have assigned a hold recommendation to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $11.40.

Separately, Weiss Ratings upgraded shares of Organon & Co. from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, October 8th.

Organon & Co. Stock Performance

Shares of OGN traded up $0.04 during mid-day trading on Friday, hitting $13.84. The company's stock had a trading volume of 3,947,167 shares, compared to its average volume of 2,241,068. The firm has a market capitalization of $3.63 billion, a PE ratio of 18.20, a price-to-earnings-growth ratio of 1.27 and a beta of 1.53. Organon & Co. has a one year low of $5.69 and a one year high of $13.88. The stock's 50-day moving average is $13.75 and its two-hundred day moving average is $11.60. The company has a debt-to-equity ratio of 7.11, a quick ratio of 1.44 and a current ratio of 2.02.

Organon & Co. (NYSE:OGN - Get Free Report) last announced its quarterly earnings data on Friday, October 30th. The company reported $0.94 EPS for the quarter, beating analysts' consensus estimates of $0.88 by $0.06. Organon & Co. had a net margin of 3.49% and a return on equity of 82.06%. The business had revenue of $1.57 billion during the quarter, compared to analyst estimates of $1.58 billion. As a group, sell-side analysts anticipate that Organon & Co. will post 3.24 EPS for the current year.

Organon & Co. Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Monday, November 9th will be issued a $0.02 dividend. This represents a $0.08 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Monday, November 9th. Organon & Co.'s payout ratio is currently 10.53%.

Hedge Funds Weigh In On Organon & Co.

Several hedge funds have recently added to or reduced their stakes in the stock. Kahn Brothers Group Inc. bought a new position in Organon & Co. during the second quarter worth about $36,159,000. First Trust Advisors LP grew its holdings in shares of Organon & Co. by 78.1% during the first quarter. First Trust Advisors LP now owns 3,227,320 shares of the company's stock worth $19,332,000 after buying an additional 1,415,239 shares in the last quarter. Groupe la Francaise bought a new position in shares of Organon & Co. during the 2nd quarter worth approximately $10,499,000. Absolute Gestao de Investimentos Ltda. acquired a new stake in Organon & Co. in the 2nd quarter valued at $9,007,000. Finally, WINTON GROUP Ltd acquired a new stake in shares of Organon & Co. in the second quarter valued at about $6,904,000. Institutional investors and hedge funds own 77.43% of the company's stock.

Organon & Co. Company Profile

Organon & Co is a global health care company focused on improving the health and quality of life of women throughout their lives. The company develops, manufactures and commercializes prescription medicines and other health care products, with operations serving patients and health care providers in markets around the world.

Organon's women's health portfolio includes contraceptive products such as Nexplanon and NuvaRing, as well as medicines and technologies related to fertility, pregnancy and other reproductive health needs.

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