Arrowstreet Capital Limited Partnership Decreases Stock Position in Merck & Co., Inc. $MRK

Key Points

• Arrowstreet Capital cut its Merck stake by 46.8% in the fourth quarter, selling 8.76 million shares and ending with 9.94 million shares valued at about $1.05 billion.
• Merck reported better-than-expected quarterly results, with EPS of -$1.28 versus estimates of -$1.47 and revenue of $16.29 billion, up 4.9% year over year.
• The company also declared a quarterly dividend of $0.85 per share, equal to an annualized payout of $3.40 and a yield of 2.9%; analysts currently rate the stock a Moderate Buy with an average target price of $128.18.

Arrowstreet Capital Limited Partnership decreased its holdings in shares of Merck & Co., Inc. (NYSE:MRK - Free Report) by 46.8% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 9,944,123 shares of the company's stock after selling 8,764,580 shares during the quarter. Merck & Co., Inc. comprises about 0.6% of Arrowstreet Capital Limited Partnership's portfolio, making the stock its 27th biggest holding. Arrowstreet Capital Limited Partnership owned approximately 0.40% of Merck & Co., Inc. worth $1,046,718,000 at the end of the most recent quarter.

A number of other large investors have also modified their holdings of MRK. Kingdom Financial Group LLC. purchased a new stake in shares of Merck & Co., Inc. during the fourth quarter worth $25,000. United Financial Planning Group LLC purchased a new stake in shares of Merck & Co., Inc. during the third quarter worth $31,000. High Note Wealth LLC grew its holdings in shares of Merck & Co., Inc. by 58.9% during the fourth quarter. High Note Wealth LLC now owns 294 shares of the company's stock worth $31,000 after buying an additional 109 shares in the last quarter. IFC & Insurance Marketing Inc. purchased a new stake in shares of Merck & Co., Inc. during the fourth quarter worth $31,000. Finally, Gilpin Wealth Management LLC purchased a new stake in shares of Merck & Co., Inc. during the fourth quarter worth $32,000. Hedge funds and other institutional investors own 76.07% of the company's stock.

Merck & Co., Inc. Trading Down 1.4%

Shares of MRK opened at $119.05 on Friday. The company has a current ratio of 1.30, a quick ratio of 1.06 and a debt-to-equity ratio of 1.02. Merck & Co., Inc. has a 12-month low of $76.66 and a 12-month high of $125.14. The firm has a 50-day moving average price of $116.55 and a 200 day moving average price of $113.23. The firm has a market capitalization of $294.04 billion, a P/E ratio of 33.54, a P/E/G ratio of 2.68 and a beta of 0.21.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The company reported ($1.28) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($1.47) by $0.19. Merck & Co., Inc. had a net margin of 13.59% and a return on equity of 27.55%. The firm had revenue of $16.29 billion during the quarter, compared to analyst estimates of $15.85 billion. During the same quarter in the prior year, the firm posted $2.22 earnings per share. Merck & Co., Inc.'s quarterly revenue was up 4.9% on a year-over-year basis. Merck & Co., Inc. has set its FY 2026 guidance at 5.040-5.160 EPS. Sell-side analysts forecast that Merck & Co., Inc. will post 5.17 EPS for the current year.

Merck & Co., Inc. Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 8th. Investors of record on Monday, June 15th will be issued a $0.85 dividend. The ex-dividend date of this dividend is Monday, June 15th. This represents a $3.40 dividend on an annualized basis and a dividend yield of 2.9%. Merck & Co., Inc.'s dividend payout ratio is currently 95.77%.

Analyst Ratings Changes

A number of research firms have recently issued reports on MRK. Weiss Ratings lowered shares of Merck & Co., Inc. from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, May 15th. UBS Group upped their target price on shares of Merck & Co., Inc. from $130.00 to $145.00 and gave the stock a "buy" rating in a report on Monday, April 13th. Zacks Research raised shares of Merck & Co., Inc. from a "strong sell" rating to a "hold" rating in a report on Tuesday, March 17th. Wall Street Zen raised shares of Merck & Co., Inc. from a "hold" rating to a "buy" rating in a report on Saturday, June 6th. Finally, JPMorgan Chase & Co. upped their target price on shares of Merck & Co., Inc. from $125.00 to $135.00 and gave the stock an "overweight" rating in a report on Monday, April 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat.com, Merck & Co., Inc. currently has an average rating of "Moderate Buy" and an average target price of $128.18.

Key Merck & Co., Inc. News

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

• Positive Sentiment: Merck Animal Health announced a definitive agreement to acquire TARGAN, a poultry biodevice company, which could strengthen Merck’s animal health division and broaden its technology-driven growth opportunities. Merck Animal Health to Acquire TARGAN
• Positive Sentiment: Merck saw unusually heavy call option buying, with traders purchasing 170,441 calls, a sharp jump versus normal volume that often signals bullish expectations from sophisticated investors.
• Positive Sentiment: Wells Fargo reiterated a buy rating on Merck, while another article highlighted that Wall Street’s overall bullish view continues to keep MRK on investors’ radar.
• Neutral Sentiment: Merck has also been featured in broader market commentary and “most searched” lists, suggesting rising attention rather than a new fundamental catalyst.
• Neutral Sentiment: One article noted Merck’s recent trading uptick but said it lagged the broader market, indicating modest price strength rather than a major breakout. Merck (MRK) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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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