Hodges Capital Management Inc. Sells 8,148 Shares of Merck & Co., Inc. $MRK

Key Points

• Hodges Capital Management reduced its Merck position by 58.8%, selling 8,148 shares and retaining 5,714 shares valued at approximately $734,000. Institutional investors collectively own 76.07% of the company.
• Analyst sentiment remains positive: 15 analysts rate Merck a Buy and seven rate it a Hold, resulting in a “Moderate Buy” consensus and an average price target of $135.50.
• Merck’s oncology outlook received a boost after its Keytruda combination with Moderna’s personalized mRNA melanoma vaccine met the primary endpoint in a Phase 3 trial. However, regulatory approval, full trial data and Keytruda’s eventual patent expiry remain important risks.

Hodges Capital Management Inc. cut its position in Merck & Co., Inc. (NYSE:MRK - Free Report) by 58.8% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 5,714 shares of the company's stock after selling 8,148 shares during the period. Hodges Capital Management Inc.'s holdings in Merck & Co., Inc. were worth $734,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also recently modified their holdings of the company. Kingdom Financial Group LLC. bought a new position in Merck & Co., Inc. in the 4th quarter worth $25,000. Abound Financial LLC bought a new stake in Merck & Co., Inc. during the fourth quarter valued at about $26,000. Prosperity Bancshares Inc purchased a new position in shares of Merck & Co., Inc. in the fourth quarter valued at about $26,000. High Note Wealth LLC lifted its position in shares of Merck & Co., Inc. by 58.9% in the fourth quarter. High Note Wealth LLC now owns 294 shares of the company's stock valued at $31,000 after acquiring an additional 109 shares in the last quarter. Finally, IFC & Insurance Marketing Inc. purchased a new position in shares of Merck & Co., Inc. in the fourth quarter valued at about $31,000. 76.07% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on MRK shares. BMO Capital Markets increased their target price on Merck & Co., Inc. from $135.00 to $142.00 and gave the stock an "outperform" rating in a research report on Monday, July 13th. JPMorgan Chase & Co. boosted their price target on Merck & Co., Inc. from $135.00 to $140.00 and gave the stock an "overweight" rating in a report on Monday, July 13th. Scotiabank upped their price target on Merck & Co., Inc. from $136.00 to $155.00 and gave the stock a "sector outperform" rating in a research note on Tuesday, June 30th. 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. Finally, Royal Bank Of Canada reiterated an "outperform" rating and set a $142.00 price objective on shares of Merck & Co., Inc. in a research report on Wednesday, July 8th. Fifteen analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $135.50.

Merck & Co., Inc. Stock Performance

NYSE MRK opened at $152.21 on Thursday. The stock has a market capitalization of $375.53 billion, a PE ratio of 121.77, a P/E/G ratio of 5.83 and a beta of 0.19. The business has a 50 day simple moving average of $126.86 and a two-hundred day simple moving average of $120.74. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.32 and a quick ratio of 1.10. Merck & Co., Inc. has a 1-year low of $77.58 and a 1-year high of $153.50.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported ($0.13) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.26) by $0.13. The business had revenue of $16.61 billion for the quarter, compared to analysts' expectations of $16.37 billion. Merck & Co., Inc. had a return on equity of 16.73% and a net margin of 4.77%.The company's revenue for the quarter was up 5.1% on a year-over-year basis. During the same period in the prior year, the firm earned $2.13 EPS. Merck & Co., Inc. has set its FY 2026 guidance at 2.660-2.760 EPS. On average, research analysts predict that Merck & Co., Inc. will post 2.77 EPS for the current fiscal year.

Merck & Co., Inc. Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Investors of record on Tuesday, September 15th will be paid a dividend of $0.85 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $3.40 dividend on an annualized basis and a yield of 2.2%. Merck & Co., Inc.'s dividend payout ratio is presently 272.00%.

Key Headlines Impacting Merck & Co., Inc.

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

• Positive Sentiment: Phase 3 melanoma success: Moderna and Merck said their individualized mRNA vaccine, intismeran, combined with Merck’s Keytruda, met the primary endpoint in a large Phase 3 trial. The combination significantly extended recurrence-free survival and reduced the risk of melanoma spreading compared with Keytruda alone. This represents the first positive late-stage result for a personalized mRNA cancer vaccine. Merck, Moderna say melanoma skin cancer vaccine meets goals in large trial
• Positive Sentiment: New growth opportunity for Keytruda: The results could expand Merck’s oncology franchise by pairing Keytruda with a mutation-targeted vaccine. The companies believe thousands of high-risk melanoma patients could eventually benefit, pending regulatory approval targeted for 2027. Similar trials are underway in lung, pancreatic, breast and other cancers. Why this mRNA cancer vaccine is raising new treatment hope
• Positive Sentiment: Strategic importance before patent expiry: A successful vaccine-Keytruda combination could help support Merck’s oncology pipeline as Keytruda’s patent protection is expected to expire later this decade. Unusually heavy call-option activity also indicated heightened bullish trading interest.
• Neutral Sentiment: Broader market support: Relief in bond markets helped lift rate-sensitive healthcare stocks generally, providing an additional supportive backdrop for Merck’s move. However, the company’s advance was primarily tied to the vaccine announcement.
• Negative Sentiment: Important uncertainties remain: The companies released topline results, while investors and analysts await complete trial data. The vaccine still requires regulatory approval, and the commercial opportunity, pricing and longer-term benefits are not yet established. Merck also faces substantial future pressure from Keytruda’s eventual loss of exclusivity.

Insider Buying and Selling at Merck & Co., Inc.

In other Merck & Co., Inc. news, EVP Jennifer Zachary sold 80,315 shares of Merck & Co., Inc. stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $133.46, for a total value of $10,718,839.90. Following the completion of the transaction, the executive vice president directly owned 45,509 shares of the company's stock, valued at $6,073,631.14. This trade represents a 63.83% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP David Michael Williams sold 52,847 shares of the business's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $128.77, for a total transaction of $6,805,108.19. Following the completion of the sale, the executive vice president owned 31,716 shares in the company, valued at approximately $4,084,069.32. This trade represents a 62.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 228,238 shares of company stock valued at $29,977,783 over the last ninety days. Corporate insiders own 0.17% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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