AIA Group Ltd Sells 55,326 Shares of Merck & Co., Inc. $MRK

Key Points

• AIA Group reduced its Merck stake by 12.3%, selling 55,326 shares in the third quarter and retaining 394,399 shares valued at about $57.3 million.
• Merck beat quarterly estimates, reporting EPS of $2.49 versus $2.09 expected and revenue of $18.09 billion, up 4.7% year over year.
• Merck has potential pipeline and product catalysts, including a Phase 3 trial of Ohtuvayre for COPD prevention and FDA emergency authorization for a dog screwworm treatment; analysts’ consensus rating is “Moderate Buy.”

AIA Group Ltd cut its stake in shares of Merck & Co., Inc. (NYSE:MRK - Free Report) by 12.3% during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 394,399 shares of the company's stock after selling 55,326 shares during the quarter. Merck & Co., Inc. makes up about 0.7% of AIA Group Ltd's portfolio, making the stock its 25th largest position. AIA Group Ltd's holdings in Merck & Co., Inc. were worth $57,310,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also added to or reduced their stakes in the company. Curry Webb Wealth Management LLC bought a new position in shares of Merck & Co., Inc. during the third quarter valued at about $29,000. Horizons Wealth Management purchased a new position in Merck & Co., Inc. during the third quarter worth about $30,000. Bullseye Investment Management LLC bought a new stake in Merck & Co., Inc. in the 2nd quarter worth about $27,000. Graney & King LLC grew its position in Merck & Co., Inc. by 400.0% in the 2nd quarter. Graney & King LLC now owns 250 shares of the company's stock worth $32,000 after purchasing an additional 200 shares in the last quarter. Finally, Foresight Capital Management Advisors Inc. purchased a new stake in Merck & Co., Inc. in the 3rd quarter valued at about $43,000. Institutional investors own 76.07% of the company's stock.

Merck & Co., Inc. Stock Performance

NYSE:MRK opened at $144.50 on Wednesday. The business's 50-day moving average price is $146.70 and its two-hundred day moving average price is $127.06. Merck & Co., Inc. has a twelve month low of $82.01 and a twelve month high of $156.92. The stock has a market cap of $356.50 billion, a P/E ratio of 47.55, a PEG ratio of 6.70 and a beta of 0.13. The company has a quick ratio of 1.10, a current ratio of 1.32 and a debt-to-equity ratio of 1.22.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The company reported $2.49 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.09 by $0.40. Merck & Co., Inc. had a return on equity of 16.56% and a net margin of 3.64%. The firm had revenue of $18.09 billion during the quarter, compared to the consensus estimate of $17.33 billion. During the same quarter last year, the company posted $2.58 EPS. The company's revenue for the quarter was up 4.7% on a year-over-year basis. As a group, equities analysts predict that Merck & Co., Inc. will post 2.87 EPS for the current fiscal year.

Insider Transactions at Merck & Co., Inc.

In other Merck & Co., Inc. news, EVP Jennifer Zachary sold 80,315 shares of the company's stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $133.46, for a total value of $10,718,839.90. Following the completion of the sale, the executive vice president owned 45,509 shares of the company's stock, valued at $6,073,631.14. This represents a 63.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Chirfi Guindo sold 15,000 shares of the stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $131.00, for a total transaction of $1,965,000.00. Following the transaction, the executive vice president directly owned 46,613 shares in the company, valued at approximately $6,106,303. This represents a 24.35% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 156,685 shares of company stock valued at $20,764,839 in the last quarter. Insiders own 0.17% of the company's stock.

More Merck & Co., Inc. News

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

• Positive Sentiment: Merck began a Phase 3 trial of Ohtuvayre (ensifentrine) to assess whether it can prevent COPD exacerbations in higher-risk adults. A successful study could support the drug’s growth potential and broaden Merck’s pipeline. Merck initiates Phase 3 Ohtuvayre study
• Positive Sentiment: The U.S. FDA granted emergency-use authorization for a Merck treatment against screwworm in dogs, providing a near-term product opportunity. Reuters report on FDA authorization
• Neutral Sentiment: Merck’s pipeline is being viewed as a potential future growth driver, and its CEO has targeted $70 billion in revenue in the mid-2030s. However, the outlook depends on development and launch execution. Article on Merck’s pipeline and growth outlook
• Negative Sentiment: DZ Bank downgraded MRK from Buy to Hold, despite setting a $153 price target. The move adds to caution around the stock; commentary also points to the looming patent cliff as a key longer-term risk. DZ Bank rating change

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on MRK shares. The Goldman Sachs Group raised their target price on Merck & Co., Inc. from $140.00 to $160.00 and gave the company a "buy" rating in a research report on Friday, August 21st. Wolfe Research boosted their price target on shares of Merck & Co., Inc. from $155.00 to $180.00 and gave the stock an "outperform" rating in a report on Tuesday, August 25th. Freedom Broker increased their price target on shares of Merck & Co., Inc. from $125.00 to $140.00 and gave the company a "hold" rating in a research report on Monday. Argus raised their price objective on shares of Merck & Co., Inc. from $145.00 to $170.00 and gave the stock a "buy" rating in a report on Tuesday, August 25th. Finally, UBS Group lifted their price objective on shares of Merck & Co., Inc. from $145.00 to $175.00 and gave the stock a "buy" rating in a research report on Thursday, August 20th. Seventeen analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Merck & Co., Inc. currently has an average rating of "Moderate Buy" and a consensus target price of $155.74.

Merck & Co., Inc. Profile

Merck & Co, Inc is a global healthcare company that develops, manufactures and markets prescription medicines, vaccines and animal-health products. Its pharmaceutical business focuses on oncology, infectious diseases, cardiology, immunology and other areas of significant medical need. The company serves patients, healthcare providers and institutions in markets worldwide.

Merck's principal products include Keytruda, an immunotherapy used to treat a range of cancers; Gardasil and Gardasil 9, vaccines that help protect against human papillomavirus; and Januvia and Janumet, medicines used to manage type 2 diabetes.

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