Cornerstone Advisors LLC Decreases Holdings in Merck & Co., Inc. (NYSE:MRK)

Key Points

• Cornerstone Advisors LLC reported a 13.2% reduction in its holdings of Merck & Co., Inc. in the 1st quarter, leaving them with 114,700 shares valued at approximately $10.3 million.
• Merck recently disclosed a quarterly dividend of $0.81 per share, which results in an annualized dividend yield of 4.0% and a payout ratio of 49.92%.
• Equities analysts have mixed ratings for Merck, with a consensus rating of "Hold" and an average target price of $107.44, indicating moderate optimism for the stock's future performance.

Cornerstone Advisors LLC cut its holdings in shares of Merck & Co., Inc. (NYSE:MRK - Free Report) by 13.2% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 114,700 shares of the company's stock after selling 17,500 shares during the quarter. Cornerstone Advisors LLC's holdings in Merck & Co., Inc. were worth $10,295,000 at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in the business. Barnes Dennig Private Wealth Management LLC purchased a new stake in Merck & Co., Inc. in the 1st quarter worth about $27,000. Spurstone Advisory Services LLC purchased a new stake in Merck & Co., Inc. in the 4th quarter worth about $37,000. MorganRosel Wealth Management LLC purchased a new stake in Merck & Co., Inc. in the 1st quarter worth about $36,000. Marshall & Sterling Wealth Advisors Inc. purchased a new stake in Merck & Co., Inc. in the 4th quarter worth about $44,000. Finally, Minot DeBlois Advisors LLC purchased a new stake in Merck & Co., Inc. in the 4th quarter worth about $45,000. 76.07% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. Guggenheim reissued a "buy" rating and issued a $115.00 price objective on shares of Merck & Co., Inc. in a report on Thursday, April 17th. Wall Street Zen lowered Merck & Co., Inc. from a "strong-buy" rating to a "buy" rating in a report on Friday, April 25th. Citigroup reissued a "neutral" rating and issued a $84.00 price objective (down previously from $115.00) on shares of Merck & Co., Inc. in a report on Wednesday, May 14th. Wells Fargo & Company cut their target price on Merck & Co., Inc. from $97.00 to $90.00 and set an "equal weight" rating for the company in a research note on Wednesday, July 30th. Finally, Morgan Stanley cut their target price on Merck & Co., Inc. from $99.00 to $98.00 and set an "equal weight" rating for the company in a research note on Thursday, July 10th. One equities research analyst has rated the stock with a sell rating, twelve have given a hold rating, seven have given a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $107.44.

Merck & Co., Inc. Stock Performance

Shares of MRK opened at $80.78 on Wednesday. The company has a market cap of $202.85 billion, a PE ratio of 12.45, a price-to-earnings-growth ratio of 0.81 and a beta of 0.38. The company has a current ratio of 1.41, a quick ratio of 1.16 and a debt-to-equity ratio of 0.69. The stock has a 50-day moving average price of $80.52 and a 200-day moving average price of $84.29. Merck & Co., Inc. has a 12-month low of $73.31 and a 12-month high of $120.30.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The company reported $2.13 earnings per share for the quarter, beating analysts' consensus estimates of $2.03 by $0.10. The company had revenue of $15.81 billion for the quarter, compared to analysts' expectations of $15.92 billion. Merck & Co., Inc. had a return on equity of 41.63% and a net margin of 25.79%. As a group, equities analysts forecast that Merck & Co., Inc. will post 9.01 earnings per share for the current fiscal year.

Merck & Co., Inc. Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 7th. Investors of record on Monday, September 15th will be issued a dividend of $0.81 per share. This represents a $3.24 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date of this dividend is Monday, September 15th. Merck & Co., Inc.'s dividend payout ratio (DPR) is currently 49.92%.

About Merck & Co., Inc.

Merck & Co, Inc is a health care company, which engages in the provision of health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. It operates through the following segments: Pharmaceutical, Animal Health, and Other. The Pharmaceutical segment includes human health pharmaceutical and vaccine products.

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