Aristotle Capital Management LLC Cuts Stock Position in Merck & Co., Inc. $MRK

Key Points

• Aristotle Capital Management trimmed its Merck stake by 5.3% in the first quarter, but still held 6.89 million shares worth about $829 million. Merck remains a meaningful position for the firm, representing 1.7% of its portfolio.
• Merck announced initial access plans for its investigational HIV PrEP drug alimatravir, including voluntary licensing agreements covering 129 countries. This broad rollout strategy could help support future adoption if the drug wins approval.
• There are also mixed signals for the stock: traders have been active in Merck call options and analysts remain broadly constructive, but the launch of the first generic Janumet XR in the U.S. may pressure Merck’s diabetes sales.

Aristotle Capital Management LLC lowered its holdings in shares of Merck & Co., Inc. (NYSE:MRK - Free Report) by 5.3% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 6,894,432 shares of the company's stock after selling 386,461 shares during the quarter. Merck & Co., Inc. makes up 1.7% of Aristotle Capital Management LLC's portfolio, making the stock its 24th biggest holding. Aristotle Capital Management LLC owned approximately 0.28% of Merck & Co., Inc. worth $829,339,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Brighton Jones LLC grew its position in Merck & Co., Inc. by 29.5% in the fourth quarter. Brighton Jones LLC now owns 38,278 shares of the company's stock worth $3,808,000 after acquiring an additional 8,710 shares in the last quarter. Sivia Capital Partners LLC raised its holdings in Merck & Co., Inc. by 52.2% during the 2nd quarter. Sivia Capital Partners LLC now owns 11,494 shares of the company's stock valued at $910,000 after buying an additional 3,941 shares during the period. Diversify Advisory Services LLC lifted its position in Merck & Co., Inc. by 94.1% in the second quarter. Diversify Advisory Services LLC now owns 32,256 shares of the company's stock worth $2,590,000 after buying an additional 15,636 shares during the last quarter. Diversify Wealth Management LLC lifted its position in Merck & Co., Inc. by 22.2% in the second quarter. Diversify Wealth Management LLC now owns 38,031 shares of the company's stock worth $3,054,000 after buying an additional 6,897 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Merck & Co., Inc. by 111.7% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 681,128 shares of the company's stock worth $53,918,000 after buying an additional 359,356 shares during the period. Institutional investors own 76.07% of the company's stock.

Key Headlines Impacting Merck & Co., Inc.

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

• Positive Sentiment: Merck announced initial access plans for alimatravir, its investigational once-monthly oral HIV PrEP in Phase 3 development, and said it has signed voluntary licensing agreements covering 129 countries. That broad access strategy could support adoption in large international markets if the drug is approved. Article Title
• Neutral Sentiment: Merck also issued a company release on the same alimatravir access plan, reinforcing that the program is moving forward and that it is trying to expand availability in regions that account for most new HIV diagnoses globally. Article Title
• Neutral Sentiment: Traders also bought a high volume of Merck call options, which may reflect rising bullish speculation around the stock and the HIV pipeline, but it does not by itself change fundamentals. Article Title
• Negative Sentiment: Par Health launched the first generic version of Janumet XR in the U.S., which may pressure Merck’s diabetes-related sales and adds another competitive headwind for an established product. Article Title

Analyst Upgrades and Downgrades

Several brokerages have issued reports on MRK. Morgan Stanley raised their price objective on shares of Merck & Co., Inc. from $112.00 to $113.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 9th. Wall Street Zen cut Merck & Co., Inc. from a "buy" rating to a "hold" rating in a report on Monday, July 20th. CICC Research initiated coverage on Merck & Co., Inc. in a research note on Wednesday, June 24th. They issued an "outperform" rating and a $138.00 target price on the stock. Citigroup started coverage on shares of Merck & Co., Inc. in a research note on Wednesday, May 6th. They set a "neutral" rating and a $125.00 target price for the company. Finally, Weiss Ratings cut shares of Merck & Co., Inc. from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, May 15th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, Merck & Co., Inc. currently has an average rating of "Moderate Buy" and a consensus price target of $133.94.

Merck & Co., Inc. Stock Performance

Shares of MRK stock opened at $131.06 on Friday. Merck & Co., Inc. has a 52-week low of $76.66 and a 52-week high of $131.74. The company has a quick ratio of 1.06, a current ratio of 1.30 and a debt-to-equity ratio of 1.02. The stock has a market cap of $323.68 billion, a PE ratio of 36.92, a price-to-earnings-growth ratio of 5.18 and a beta of 0.19. The business has a 50-day simple moving average of $121.67 and a 200-day simple moving average of $117.71.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported ($1.28) earnings per share for the quarter, beating the consensus estimate of ($1.47) by $0.19. The company had revenue of $16.29 billion during the quarter, compared to analysts' expectations of $15.85 billion. Merck & Co., Inc. had a return on equity of 27.55% and a net margin of 13.59%.Merck & Co., Inc.'s quarterly revenue was up 4.9% on a year-over-year basis. During the same period last year, the business earned $2.22 earnings per share. Merck & Co., Inc. has set its FY 2026 guidance at 5.040-5.160 EPS. On average, equities analysts expect that Merck & Co., Inc. will post 2.74 EPS for the current year.

Merck & Co., Inc. Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 8th. Investors of record on Monday, June 15th were paid a $0.85 dividend. The ex-dividend date of this dividend was Monday, June 15th. This represents a $3.40 dividend on an annualized basis and a yield of 2.6%. Merck & Co., Inc.'s dividend payout ratio (DPR) is currently 95.77%.

Merck & Co., Inc. Company Profile

Merck & Co, Inc is a global biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines, vaccines, biologic therapies and animal health products. Its portfolio spans multiple therapeutic areas with a particular emphasis on oncology, vaccines and infectious disease, as well as therapies for metabolic and chronic conditions. Among its well-known products are the cancer immunotherapy Keytruda (pembrolizumab) and the human papillomavirus vaccine Gardasil; the company also markets a range of medicines and vaccines for veterinary use through Merck Animal Health.

Founded in the late 19th century as the U.S.

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