Merck & Co., Inc. $MRK Holdings Decreased by Sterling Capital Management LLC

Key Points

• Sterling Capital Management cut its Merck stake by 39.5% in the third quarter, selling 42,781 shares and retaining 65,526 shares worth approximately $9.5 million. Institutional investors still own 76.07% of MRK.
• Analyst sentiment remains positive: 17 analysts rate Merck a Buy, nine rate it a Hold, and one rates it a Sell, producing a “Moderate Buy” consensus and an average price target of $151.92.
• Merck’s oncology pipeline received positive momentum from strong melanoma vaccine results and expanded EU approval for Keytruda plus Padcev, but investors remain concerned about valuation, Keytruda’s patent-cliff exposure, and weaker projected earnings.

Sterling Capital Management LLC trimmed its stake in shares of Merck & Co., Inc. (NYSE:MRK - Free Report) by 39.5% during the third quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 65,526 shares of the company's stock after selling 42,781 shares during the quarter. Sterling Capital Management LLC's holdings in Merck & Co., Inc. were worth $9,522,000 as of its most recent SEC filing.

A number of other institutional investors have also added to or reduced their stakes in MRK. Dimensional Fund Advisors LP grew its holdings in Merck & Co., Inc. by 23.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 15,456,039 shares of the company's stock valued at $1,858,938,000 after buying an additional 2,969,856 shares in the last quarter. Bank of America Corp DE boosted its position in shares of Merck & Co., Inc. by 10.5% in the first quarter. Bank of America Corp DE now owns 30,774,221 shares of the company's stock valued at $3,701,831,000 after acquiring an additional 2,919,780 shares during the period. Diamant Asset Management Inc. grew its stake in Merck & Co., Inc. by 12,130.3% during the first quarter. Diamant Asset Management Inc. now owns 2,068,387 shares of the company's stock valued at $248,806,000 after acquiring an additional 2,051,475 shares in the last quarter. Assenagon Asset Management S.A. grew its stake in Merck & Co., Inc. by 263.7% during the second quarter. Assenagon Asset Management S.A. now owns 2,702,992 shares of the company's stock valued at $347,334,000 after acquiring an additional 1,959,778 shares in the last quarter. Finally, Wellington Management Group LLP grew its stake in Merck & Co., Inc. by 2.3% during the second quarter. Wellington Management Group LLP now owns 86,249,283 shares of the company's stock valued at $11,083,033,000 after acquiring an additional 1,934,312 shares in the last quarter. Hedge funds and other institutional investors own 76.07% of the company's stock.

Analyst Ratings Changes

Several research firms have issued reports on MRK. HSBC increased their target price on shares of Merck & Co., Inc. from $150.00 to $172.00 and gave the stock a "buy" rating in a research note on Thursday, September 10th. Barclays upped their price target on shares of Merck & Co., Inc. from $140.00 to $150.00 and gave the stock an "overweight" rating in a report on Wednesday, July 29th. Daiwa Securities Group upgraded Merck & Co., Inc. from a "neutral" rating to an "outperform" rating and set a $143.00 price objective on the stock in a research report on Wednesday, August 12th. Jefferies Financial Group upped their target price on Merck & Co., Inc. from $152.00 to $175.00 and gave the stock a "buy" rating in a research note on Thursday, August 20th. Finally, Guggenheim upped their price objective on shares of Merck & Co., Inc. from $146.00 to $170.00 and gave the stock a "buy" rating in a research report on Tuesday, September 8th. Seventeen investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Merck & Co., Inc. presently has an average rating of "Moderate Buy" and an average price target of $151.92.

Insider Activity at Merck & Co., Inc.

In related news, EVP David Maraldo sold 18,706 shares of the firm's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $128.72, for a total transaction of $2,407,836.32. Following the transaction, the executive vice president directly owned 18,212 shares of the company's stock, valued at approximately $2,344,248.64. This trade represents a 50.67% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP David Williams sold 52,847 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $128.77, for a total value of $6,805,108.19. Following the completion of the sale, the executive vice president owned 31,716 shares of the company's stock, valued at $4,084,069.32. The trade was a 62.49% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 228,238 shares of company stock worth $29,977,783 in the last quarter. 0.17% of the stock is owned by company insiders.

Key Headlines Impacting Merck & Co., Inc.

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

• Positive Sentiment: Merck and Moderna reported positive Phase 3 INTerpath-001 results for the personalized melanoma vaccine, intismeran, combined with Keytruda. The treatment reduced the risk of recurrence or death by 42% and also improved distant metastasis-free survival, supporting the long-term potential of the partnership’s oncology pipeline. Doctors call Moderna and Merck cancer vaccine data a major advancement
• Positive Sentiment: The European Commission approved Keytruda plus Padcev as a perioperative treatment for resectable muscle-invasive bladder cancer, regardless of patients’ cisplatin eligibility. The broader label expands the addressable market and represents the EU’s first approval of a PD-1 inhibitor combined with an antibody-drug conjugate in this setting. Merck wins EU approval for Keytruda plus Padcev
• Neutral Sentiment: Despite strong clinical results, the vaccine announcement triggered a “sell-the-news” reaction. The data largely met elevated Wall Street expectations after an earlier leak, limiting the immediate upside for MRK even though oncologists viewed the results as an important treatment advance. Merck and Moderna shares fall on cancer vaccine results
• Negative Sentiment: Investors remain concerned about valuation and Merck’s future revenue concentration in Keytruda ahead of its patent cliff. Analysts have also characterized the recent rally as leaving limited margin of safety, increasing the risk of profit-taking when news is merely in line with expectations. Merck rally leaves little margin of safety
• Negative Sentiment: Erste Group Bank reduced its FY2026 EPS estimate to $2.63 from $2.73 and its FY2027 estimate to $9.38 from $9.47. Separate previews also anticipate a year-over-year decline in quarterly earnings, adding near-term pressure to the shares. Merck earnings preview

Merck & Co., Inc. Price Performance

NYSE:MRK traded down $1.99 during midday trading on Friday, hitting $145.25. The company had a trading volume of 8,379,092 shares, compared to its average volume of 9,663,986. Merck & Co., Inc. has a 52-week low of $82.01 and a 52-week high of $156.92. The stock's fifty day moving average price is $146.98 and its 200-day moving average price is $130.17. The company has a market capitalization of $358.35 billion, a PE ratio of 116.20, a P/E/G ratio of 6.83 and a beta of 0.21. The company has a quick ratio of 1.10, a current ratio of 1.32 and a debt-to-equity ratio of 1.22.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported ($0.13) EPS for the quarter, beating analysts' consensus estimates of ($0.26) by $0.13. Merck & Co., Inc. had a return on equity of 16.73% and a net margin of 4.77%. The business had revenue of $16.61 billion for the quarter, compared to analysts' expectations of $16.37 billion. During the same quarter in the prior year, the firm earned $2.13 earnings per share. The firm's revenue was up 5.1% on a year-over-year basis. Merck & Co., Inc. has set its FY 2026 guidance at 2.660-2.760 EPS. As a group, research analysts expect that Merck & Co., Inc. will post 2.64 earnings per share for the current year.

Merck & Co., Inc. Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 7th. Stockholders of record on Tuesday, September 15th were given a dividend of $0.85 per share. The ex-dividend date was Tuesday, September 15th. This represents a $3.40 annualized dividend and a dividend yield of 2.3%. Merck & Co., Inc.'s dividend payout ratio is 272.00%.

About Merck & Co., Inc.

Merck & Co, Inc is a global healthcare company that develops, manufactures and markets prescription medicines, vaccines and animal-health products. Its pharmaceutical business focuses on oncology, infectious diseases, cardiology, immunology and other areas of significant medical need. The company serves patients, healthcare providers and institutions in markets worldwide.

Merck's principal products include Keytruda, an immunotherapy used to treat a range of cancers; Gardasil and Gardasil 9, vaccines that help protect against human papillomavirus; and Januvia and Janumet, medicines used to manage type 2 diabetes.

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