First Trust Advisors LP Sells 162,791 Shares of Merck & Co., Inc. $MRK

Key Points

• First Trust Advisors LP reduced its Merck stake by 3.5% in the first quarter, selling 162,791 shares and ending with 4.47 million shares worth about $537.2 million.
• Merck beat quarterly expectations, reporting adjusted EPS of -$1.28 versus the -$1.47 consensus and revenue of $16.29 billion, while also reiterating FY 2026 EPS guidance of $5.04 to $5.16.
• Wall Street remains generally constructive on MRK, with a consensus rating of “Moderate Buy” and a target price of $133.94, though some analysts have recently mixed in neutral or hold views.

First Trust Advisors LP trimmed its position in Merck & Co., Inc. (NYSE:MRK - Free Report) by 3.5% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 4,465,569 shares of the company's stock after selling 162,791 shares during the quarter. First Trust Advisors LP owned about 0.18% of Merck & Co., Inc. worth $537,163,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in shares of Merck & Co., Inc. by 0.9% in the fourth quarter. Vanguard Group Inc. now owns 254,322,763 shares of the company's stock worth $26,770,014,000 after purchasing an additional 2,185,853 shares during the period. State Street Corp lifted its stake in shares of Merck & Co., Inc. by 1.6% during the 4th quarter. State Street Corp now owns 120,040,168 shares of the company's stock valued at $12,737,504,000 after buying an additional 1,859,990 shares in the last quarter. Wellington Management Group LLP boosted its holdings in Merck & Co., Inc. by 14.8% in the 4th quarter. Wellington Management Group LLP now owns 86,435,458 shares of the company's stock worth $9,098,196,000 after buying an additional 11,156,354 shares during the period. Geode Capital Management LLC increased its stake in Merck & Co., Inc. by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 60,047,984 shares of the company's stock worth $6,307,572,000 after buying an additional 249,110 shares in the last quarter. Finally, Morgan Stanley raised its holdings in Merck & Co., Inc. by 0.8% during the fourth quarter. Morgan Stanley now owns 44,946,021 shares of the company's stock valued at $4,731,018,000 after acquiring an additional 359,486 shares during the period. Institutional investors own 76.07% of the company's stock.

Merck & Co., Inc. Stock Up 1.5%

Shares of MRK stock opened at $126.27 on Wednesday. The company's fifty day simple moving average is $120.65 and its two-hundred day simple moving average is $117.29. Merck & Co., Inc. has a 52 week low of $76.66 and a 52 week high of $131.74. The stock has a market cap of $311.86 billion, a P/E ratio of 35.57, a PEG ratio of 4.95 and a beta of 0.19. The company has a quick ratio of 1.06, a current ratio of 1.30 and a debt-to-equity ratio of 1.02.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The company reported ($1.28) earnings per share for the quarter, beating analysts' consensus estimates of ($1.47) by $0.19. Merck & Co., Inc. had a return on equity of 27.55% and a net margin of 13.59%.The firm had revenue of $16.29 billion during the quarter, compared to analyst estimates of $15.85 billion. During the same quarter last year, the business posted $2.22 earnings per share. The business's quarterly revenue was up 4.9% compared to the same quarter last year. Merck & Co., Inc. has set its FY 2026 guidance at 5.040-5.160 EPS. Analysts predict that Merck & Co., Inc. will post 2.74 EPS for the current fiscal year.

Merck & Co., Inc. Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 8th. Shareholders of record on Monday, June 15th were issued a dividend of $0.85 per share. This represents a $3.40 annualized dividend and a yield of 2.7%. The ex-dividend date was Monday, June 15th. Merck & Co., Inc.'s dividend payout ratio (DPR) is currently 95.77%.

Analyst Ratings Changes

Several equities analysts have recently commented on MRK shares. Scotiabank boosted their price objective on Merck & Co., Inc. from $136.00 to $155.00 and gave the company a "sector outperform" rating in a research report on Tuesday, June 30th. Citigroup began coverage on Merck & Co., Inc. in a research note on Wednesday, May 6th. They set a "neutral" rating and a $125.00 target price on the stock. BMO Capital Markets boosted their price target on Merck & Co., Inc. from $135.00 to $142.00 and gave the stock an "outperform" rating in a report on Monday, July 13th. Weiss Ratings downgraded Merck & Co., Inc. from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, May 15th. Finally, Morgan Stanley increased their price objective on shares of Merck & Co., Inc. from $112.00 to $113.00 and gave the company an "equal weight" rating in a report on Thursday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $133.94.

Trending Headlines about Merck & Co., Inc.

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

• Positive Sentiment: Merck and Gilead announced that Phase 3 data from the investigational once-weekly oral HIV regimen combining islatravir and lenacapavir will be presented at AIDS 2026, with the primary endpoint showing maintained viral suppression in adults who switched therapies. The update highlights progress in a potentially important HIV program and could support long-term growth expectations. Article: Investigational Once-Weekly Oral HIV Treatment Regimen of Islatravir and Lenacapavir Maintained Virological Suppression in Adults With HIV Who Switched Antiretroviral Therapy
• Positive Sentiment: Phanes Therapeutics expanded its clinical trial collaboration with Merck to evaluate spevatamig with KEYTRUDA and chemotherapy in first-line biliary tract cancer. More combination-trial activity around KEYTRUDA reinforces Merck’s oncology franchise and keeps the company involved in additional mid- to long-term growth opportunities. Article: Phanes Therapeutics Announces Expansion of Clinical Trial Collaboration and Supply Agreement with Merck to Evaluate Spevatamig in Combination with KEYTRUDA® (Pembrolizumab) and Chemotherapy for Treatment of Biliary Tract Cancer
• Neutral Sentiment: Analyst-focused coverage repeated the view that Wall Street’s bullish average rating suggests Merck is worth considering, but the article also questioned how reliable consensus broker recommendations are as a signal. This is more of a sentiment check than a new fundamental catalyst. Article: Is It Worth Investing in Merck (MRK) Based on Wall Street's Bullish Views?
• Neutral Sentiment: Recent media commentary also noted that Merck had declined more than the broader market in the prior session and that one rating was lowered to Hold, but these items do not appear to reflect a major company-specific setback. Instead, they suggest some near-term caution after the recent move. Article: Merck (MRK) Declines More Than Market: Some Information for Investors
• Negative Sentiment: Coverage from Barron’s focused on what comes after Keytruda, underscoring investor concern about Merck’s long-term dependence on its flagship cancer drug and the need for a future standard-of-care franchise. That narrative can weigh on valuation if investors worry about the post-Keytruda pipeline. Article: What Comes After Merck's Keytruda? The Race for the Next Standard Cancer Treatment.

About Merck & Co., Inc.

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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