Merck & Co., Inc. $MRK Position Lessened by Arrowstreet Capital Limited Partnership

Key Points

• Arrowstreet Capital cut its Merck stake sharply in the first quarter, selling more than 7 million shares and reducing its position by 70.5% to 2.94 million shares worth about $353.2 million.
• Merck reported better-than-expected quarterly results, with EPS of -$1.28 versus estimates of -$1.47 and revenue of $16.29 billion, up 4.9% year over year.
• Analyst sentiment remains constructive, with several firms raising price targets and the stock carrying a Moderate Buy consensus and average target price of $133.94.

Arrowstreet Capital Limited Partnership lowered its stake in shares of Merck & Co., Inc. (NYSE:MRK - Free Report) by 70.5% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,936,330 shares of the company's stock after selling 7,007,793 shares during the quarter. Arrowstreet Capital Limited Partnership owned approximately 0.12% of Merck & Co., Inc. worth $353,211,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently added to or reduced their stakes in MRK. Kingdom Financial Group LLC. acquired a new position in Merck & Co., Inc. during the 4th quarter valued at about $25,000. Prosperity Bancshares Inc acquired a new stake in shares of Merck & Co., Inc. in the fourth quarter valued at approximately $26,000. Abound Financial LLC acquired a new stake in shares of Merck & Co., Inc. in the fourth quarter valued at approximately $26,000. IFC & Insurance Marketing Inc. bought a new stake in shares of Merck & Co., Inc. during the fourth quarter valued at approximately $31,000. Finally, High Note Wealth LLC raised its holdings in shares of Merck & Co., Inc. by 58.9% during the fourth quarter. High Note Wealth LLC now owns 294 shares of the company's stock valued at $31,000 after buying an additional 109 shares during the last quarter. 76.07% of the stock is currently owned by institutional investors.

Merck & Co., Inc. Trading Up 2.4%

Shares of MRK opened at $130.57 on Friday. The business's 50-day moving average price is $121.27 and its 200 day moving average price is $117.62. The stock has a market capitalization of $322.49 billion, a P/E ratio of 36.78, a P/E/G ratio of 5.08 and a beta of 0.19. Merck & Co., Inc. has a 1-year low of $76.66 and a 1-year high of $131.74. The company has a current ratio of 1.30, a quick ratio of 1.06 and a debt-to-equity ratio of 1.02.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The company reported ($1.28) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($1.47) by $0.19. Merck & Co., Inc. had a net margin of 13.59% and a return on equity of 27.55%. The business had revenue of $16.29 billion for the quarter, compared to analyst estimates of $15.85 billion. During the same quarter in the previous year, the business earned $2.22 earnings per share. The firm's 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 expect that Merck & Co., Inc. will post 2.74 earnings per share for the current year.

Merck & Co., Inc. Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 8th. Shareholders of record on Monday, June 15th were paid a dividend of $0.85 per share. This represents a $3.40 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend was Monday, June 15th. Merck & Co., Inc.'s payout ratio is 95.77%.

Analyst Ratings Changes

A number of brokerages recently issued reports on MRK. CICC Research initiated coverage on Merck & Co., Inc. in a report on Wednesday, June 24th. They issued an "outperform" rating and a $138.00 price objective for the company. BMO Capital Markets increased their price target on Merck & Co., Inc. from $135.00 to $142.00 and gave the stock an "outperform" rating in a research note on Monday, July 13th. Guggenheim increased their price target on Merck & Co., Inc. from $140.00 to $145.00 and gave the stock a "buy" rating in a research note on Monday, July 13th. Morgan Stanley raised their price target on 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 restated an "outperform" rating and set a $142.00 price objective on shares of Merck & Co., Inc. in a research note on Wednesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $133.94.

Merck & Co., Inc. 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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