Letko Brosseau & Associates Inc. Increases Holdings in Merck & Co., Inc. $MRK

Key Points

• Letko Brosseau & Associates increased its Merck stake by 4.7% in the fourth quarter, buying 16,545 additional shares and bringing its total holdings to 370,534 shares worth about $39 million.
• Merck reported better-than-expected quarterly results, with EPS of -$1.28 versus -$1.47 expected and revenue of $16.29 billion beating estimates. The company also reaffirmed FY 2026 EPS guidance of $5.04 to $5.16.
• Recent pipeline news was mixed, but a key positive was Phase 3 success for Merck and Gilead’s once-weekly HIV regimen, which could become a future growth driver. At the same time, the companies discontinued a separate Phase 3 lung cancer study after it failed to show a significant benefit.

Letko Brosseau & Associates Inc. boosted its holdings in shares of Merck & Co., Inc. (NYSE:MRK - Free Report) by 4.7% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 370,534 shares of the company's stock after purchasing an additional 16,545 shares during the period. Letko Brosseau & Associates Inc.'s holdings in Merck & Co., Inc. were worth $39,002,000 at the end of the most recent reporting period.

A number of other hedge funds also recently bought and sold shares of the business. D.A. Davidson & CO. grew its holdings in shares of Merck & Co., Inc. by 4.4% during the 4th quarter. D.A. Davidson & CO. now owns 576,959 shares of the company's stock worth $60,731,000 after acquiring an additional 24,576 shares during the period. Farther Finance Advisors LLC grew its holdings in shares of Merck & Co., Inc. by 48.9% during the 4th quarter. Farther Finance Advisors LLC now owns 97,818 shares of the company's stock worth $10,296,000 after acquiring an additional 32,114 shares during the period. Coldstream Capital Management Inc. grew its holdings in shares of Merck & Co., Inc. by 12.7% during the 3rd quarter. Coldstream Capital Management Inc. now owns 123,366 shares of the company's stock worth $10,364,000 after acquiring an additional 13,940 shares during the period. NEOS Investment Management LLC grew its holdings in shares of Merck & Co., Inc. by 39.9% during the 3rd quarter. NEOS Investment Management LLC now owns 347,684 shares of the company's stock worth $29,181,000 after acquiring an additional 99,074 shares during the period. Finally, Campbell Capital Management Inc. purchased a new position in shares of Merck & Co., Inc. during the 3rd quarter worth approximately $1,866,000. Hedge funds and other institutional investors own 76.07% of the company's stock.

Merck & Co., Inc. Stock Performance

Shares of MRK opened at $119.54 on Wednesday. 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 business's 50 day moving average price is $116.56 and its 200-day moving average price is $112.85. Merck & Co., Inc. has a 52 week low of $76.66 and a 52 week high of $125.14. The stock has a market cap of $295.24 billion, a P/E ratio of 33.67, a P/E/G ratio of 2.69 and a beta of 0.21.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The company reported ($1.28) EPS for the quarter, topping 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 for the quarter, compared to analysts' expectations of $15.85 billion. During the same period in the previous year, the firm posted $2.22 EPS. The business's revenue for the quarter 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. Equities research analysts anticipate that Merck & Co., Inc. will post 5.17 earnings per share for the current fiscal year.

Merck & Co., Inc. Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 8th. Stockholders of record on Monday, June 15th will be given a $0.85 dividend. This represents a $3.40 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend is Monday, June 15th. Merck & Co., Inc.'s payout ratio is currently 95.77%.

Key Merck & Co., Inc. News

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

• Positive Sentiment: Merck and Gilead reported positive Phase 3 results for their once-weekly HIV regimen islatravir/lenacapavir, meeting the primary efficacy endpoint in both studies and moving the program closer to regulatory filings. Article: Gilead and Merck Announce Positive Topline Results From Two Phase 3 Studies Evaluating Islatravir/Lenacapavir, an Oral Once-Weekly HIV Treatment
• Positive Sentiment: The HIV data could strengthen Merck’s long-term pipeline and add a potential new growth driver if the once-weekly treatment wins approval and commercialization proceeds as expected. Article: Gilead, Merck Report Positive Phase III HIV Study Data, End NSCLC Study
• Neutral Sentiment: Merck also presented at the Goldman Sachs 47th Annual Global Healthcare Conference, which typically reinforces management’s strategy and pipeline commentary but does not by itself change fundamentals. Article: Merck & Co., Inc. (MRK) Presents at Goldman Sachs 47th Annual Global Healthcare Conference 2026 Transcript
• Neutral Sentiment: Merck’s collaboration with The Hashgraph Group on an EU digital product passport for regulated supply chains is strategically interesting, but it is unlikely to have a near-term material impact on earnings. Article: The Hashgraph Group and Merck Introduce EU Digital Product Passport on Hedera for Regulated Supply Chains
• Negative Sentiment: Merck and Gilead discontinued a Phase 3 non-small cell lung cancer study after it failed to show a statistically significant benefit, which removes one potential oncology catalyst and highlights clinical risk in the pipeline. Article: Merck and Gilead Provide Update on Phase 3 KEYNOTE-D46/EVOKE-03 Study
• Negative Sentiment: Reuters also reported Merck is exploring treatment options for a rare Ebola strain, which may reflect additional research effort but could carry uncertainty around development timing and commercial value. Article: Merck (MRK) Explores Treatment Options for Rare Ebola Strain, Reuters Reports

Analyst Upgrades and Downgrades

MRK has been the topic of a number of research analyst reports. Barclays initiated coverage on Merck & Co., Inc. in a report on Friday, February 20th. They set an "overweight" rating and a $140.00 target price on the stock. JPMorgan Chase & Co. upped their target price on Merck & Co., Inc. from $125.00 to $135.00 and gave the stock an "overweight" rating in a report on Monday, April 6th. Royal Bank Of Canada reiterated an "outperform" rating and set a $142.00 target price on shares of Merck & Co., Inc. in a report on Monday, March 30th. Deutsche Bank Aktiengesellschaft upgraded Merck & Co., Inc. from a "hold" rating to a "buy" rating and set a $150.00 target price on the stock in a report on Friday, February 13th. Finally, Weiss Ratings downgraded Merck & Co., Inc. from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $128.18.

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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