Merck & Co., Inc. $MRK Position Cut by Perpetual Ltd

Key Points

• Perpetual Ltd cut its Merck position by 95.4% in the third quarter, selling 581,772 shares and retaining 27,793 shares valued at approximately $4.04 million. Institutional investors still own 76.07% of Merck’s stock.
• Merck reported quarterly revenue of $16.61 billion, ahead of estimates, and beat consensus EPS expectations; revenue increased 5.1% year over year. The company also maintains a quarterly dividend of $0.85, equivalent to a 2.4% annual yield.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $151.92 target price, while investors weigh Merck’s oncology pipeline prospects against concerns over reduced peak-sales expectations for remigromig.

Perpetual Ltd lessened its position in shares of Merck & Co., Inc. (NYSE:MRK - Free Report) by 95.4% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 27,793 shares of the company's stock after selling 581,772 shares during the period. Perpetual Ltd's holdings in Merck & Co., Inc. were worth $4,039,000 as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. Round Rock Advisors LLC boosted its position in shares of Merck & Co., Inc. by 0.7% during the second quarter. Round Rock Advisors LLC now owns 9,901 shares of the company's stock worth $1,272,000 after buying an additional 66 shares during the period. Cascade Financial Partners LLC boosted its stake in Merck & Co., Inc. by 0.5% during the second quarter. Cascade Financial Partners LLC now owns 14,746 shares of the company's stock valued at $1,895,000 after buying an additional 80 shares in the last quarter. Somerset Trust Co boosted its position in shares of Merck & Co., Inc. by 0.9% during the 2nd quarter. Somerset Trust Co now owns 8,701 shares of the company's stock valued at $1,118,000 after purchasing an additional 81 shares in the last quarter. Stonebridge Financial Group LLC boosted its holdings in Merck & Co., Inc. by 0.9% during the second quarter. Stonebridge Financial Group LLC now owns 8,747 shares of the company's stock worth $1,124,000 after buying an additional 81 shares in the last quarter. Finally, Stronghold Wealth Management L.L.C. boosted its stake in shares of Merck & Co., Inc. by 2.6% during the 2nd quarter. Stronghold Wealth Management L.L.C. now owns 3,237 shares of the company's stock worth $416,000 after acquiring an additional 82 shares in the last quarter. Institutional investors and hedge funds own 76.07% of the company's stock.

Insiders Place Their Bets

In related news, EVP Richard Deluca sold 11,699 shares of the business's stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $131.63, for a total transaction of $1,539,939.37. Following the transaction, the executive vice president owned 110,167 shares of the company's stock, valued at approximately $14,501,282.21. The trade was a 9.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Jennifer Zachary sold 80,315 shares of the company's stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $133.46, for a total transaction of $10,718,839.90. Following the transaction, the executive vice president directly owned 45,509 shares of the company's stock, valued at $6,073,631.14. This represents a 63.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 228,238 shares of company stock valued at $29,977,783 in the last 90 days. 0.17% of the stock is currently owned by corporate insiders.

Merck & Co., Inc. Stock Performance

Shares of MRK opened at $141.97 on Wednesday. The company has a market capitalization of $350.27 billion, a PE ratio of 113.58, a price-to-earnings-growth ratio of 6.72 and a beta of 0.21. Merck & Co., Inc. has a one year low of $82.01 and a one year high of $156.92. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.32 and a quick ratio of 1.10. The company's fifty day moving average price is $144.52 and its 200 day moving average price is $128.73.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported ($0.13) earnings per share for the quarter, topping analysts' consensus estimates of ($0.26) by $0.13. The firm had revenue of $16.61 billion during the quarter, compared to analyst estimates of $16.37 billion. Merck & Co., Inc. had a net margin of 4.77% and a return on equity of 16.73%. The business's revenue was up 5.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.13 EPS. Merck & Co., Inc. has set its FY 2026 guidance at 2.660-2.760 EPS. As a group, analysts expect that Merck & Co., Inc. will post 2.66 earnings per share for the current year.

Merck & Co., Inc. Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, October 7th. Stockholders of record on Tuesday, September 15th were paid a $0.85 dividend. The ex-dividend date was Tuesday, September 15th. This represents a $3.40 annualized dividend and a dividend yield of 2.4%. Merck & Co., Inc.'s dividend payout ratio (DPR) is presently 272.00%.

Key Headlines Impacting Merck & Co., Inc.

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

• Positive Sentiment: Merck will present first-time results from three pivotal Phase 3 oncology trials at the ESMO 2026 congress, alongside more than 90 additional abstracts covering over 20 tumor types. The disclosures could provide investors with evidence of pipeline progress and support long-term growth beyond the company’s existing portfolio. Merck ESMO 2026 announcement
• Positive Sentiment: Citigroup raised its price target for MRK to $145 from $125, although it maintained a neutral rating. The higher target reflects some improvement in the firm’s valuation view, even as the limited implied upside signals caution.
• Neutral Sentiment: Merck appointed Paul J. Diaz to its board of directors. The appointment adds healthcare-management experience but is unlikely to materially change near-term earnings expectations. Paul J. Diaz elected to Merck board
• Neutral Sentiment: Merck is scheduled to report third-quarter results in about two weeks. Analysts expect single-digit EPS growth, making the report and management’s guidance important catalysts for the stock. Merck upcoming earnings expectations
• Negative Sentiment: Jefferies cut its peak-sales forecast for remigromig by 60% after trial details showed smaller numerical vision improvements than an established competitor and raised safety concerns. Although the drug met the statistical non-inferiority threshold, the reduced commercial opportunity weighs on Merck’s growth outlook. Jefferies remigromig sales forecast cut
• Negative Sentiment: Erste Group modestly lowered its FY2026 and FY2027 EPS estimates, reinforcing caution around Merck’s earnings trajectory. The stock’s decline during the session appears consistent with investors focusing on these forecast reductions and remigromig concerns despite the positive oncology pipeline news.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. Bank of America lifted their price target on Merck & Co., Inc. from $130.00 to $141.00 and gave the company a "buy" rating in a report on Tuesday, June 30th. Berenberg Bank boosted their target price on shares of Merck & Co., Inc. from $127.00 to $137.00 and gave the stock a "hold" rating in a research report on Friday, September 11th. Morgan Stanley lowered their price objective on Merck & Co., Inc. from $179.00 to $177.00 and set an "overweight" rating on the stock in a report on Wednesday, October 7th. Daiwa Securities Group raised Merck & Co., Inc. from a "neutral" rating to an "outperform" rating and set a $143.00 price objective on the stock in a research note on Wednesday, August 12th. Finally, JPMorgan Chase & Co. boosted their target price on Merck & Co., Inc. from $150.00 to $165.00 and gave the stock an "overweight" rating in a report on Monday, October 5th. Seventeen research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $151.92.

Merck & Co., Inc. Company Profile

Merck & Co, Inc is a global healthcare company that develops and markets prescription medicines, vaccines, and animal-health products. The company serves patients, healthcare providers, and customers in markets around the world, with research and commercial operations spanning multiple geographic regions.

Its pharmaceutical portfolio includes oncology, infectious-disease, cardiovascular, immunology, and other therapeutic areas. Key products include Keytruda, an oncology treatment; Gardasil, a human papillomavirus (HPV) vaccine; Januvia and Janumet for type 2 diabetes; Bridion for anesthesia-related use; and Winrevair for pulmonary arterial hypertension.

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