Merck & Co., Inc. $MRK Shares Sold by Commonwealth Equity Services LLC

Key Points

• Commonwealth Equity Services cut its Merck stake by 5.4% in the third quarter, selling 62,642 shares; it retained 1,087,071 shares valued at about $158 million.
• Merck beat quarterly earnings and revenue expectations, reporting adjusted earnings of $2.49 per share and revenue of $18.09 billion, up 4.7% year over year. Keytruda and Gardasil sales rose, though reports flagged competition and slowing demand as risks to continued growth.
• Analyst sentiment was broadly positive, with a MarketBeat consensus rating of “Moderate Buy” and an average price target of $155.74.

Commonwealth Equity Services LLC trimmed its stake in Merck & Co., Inc. (NYSE:MRK - Free Report) by 5.4% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 1,087,071 shares of the company's stock after selling 62,642 shares during the quarter. Commonwealth Equity Services LLC's holdings in Merck & Co., Inc. were worth $157,962,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Collaborative Fund Advisors LLC boosted its holdings in Merck & Co., Inc. by 80.5% during the 3rd quarter. Collaborative Fund Advisors LLC now owns 7,802 shares of the company's stock worth $1,134,000 after acquiring an additional 3,479 shares during the last quarter. Pathway Financial Advisers LLC grew its position in Merck & Co., Inc. by 1.6% during the third quarter. Pathway Financial Advisers LLC now owns 32,529 shares of the company's stock valued at $4,727,000 after buying an additional 518 shares during the period. Northeast Investment Management increased its stake in shares of Merck & Co., Inc. by 7.1% during the 3rd quarter. Northeast Investment Management now owns 61,570 shares of the company's stock worth $8,947,000 after purchasing an additional 4,092 shares during the last quarter. Richardson Financial Services Inc. increased its position in Merck & Co., Inc. by 8.4% in the third quarter. Richardson Financial Services Inc. now owns 2,742 shares of the company's stock worth $398,000 after buying an additional 213 shares during the last quarter. Finally, Ascent Group LLC raised its stake in Merck & Co., Inc. by 5.1% in the 3rd quarter. Ascent Group LLC now owns 43,423 shares of the company's stock valued at $6,310,000 after acquiring an additional 2,098 shares during the period. 76.07% of the stock is owned by institutional investors.

Key Headlines Impacting Merck & Co., Inc.

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

• Positive Sentiment: Argus initiated coverage with a “strong buy” rating. Other coverage also cited a Wall Street “moderate buy” consensus and bullish forecasts, including a Cantor Fitzgerald price-target increase; the reports provided no target details. Read More., Read More., Read More., Read More..
• Positive Sentiment: Keytruda and Gardasil sales increased in the third quarter, providing support for revenue growth. Read More..
• Neutral Sentiment: A Baron Capital investor letter characterized business development as supporting Merck’s next growth phase, but the supplied excerpt gives no specific deal or forecast details. Read More..
• Negative Sentiment: Growth durability remains a concern: the Zacks report flags inventory reversals, slowing demand and looming competition as potential challenges to Keytruda and Gardasil momentum. Read More..

Wall Street Analysts Forecast Growth

A number of analysts recently commented on MRK shares. Daiwa Securities Group upgraded shares of Merck & Co., Inc. from a "neutral" rating to an "outperform" rating and set a $143.00 price target on the stock in a research note on Wednesday, August 12th. DZ Bank cut shares of Merck & Co., Inc. from a "buy" rating to a "hold" rating and set a $153.00 target price on the stock. in a report on Tuesday. Citigroup boosted their target price on shares of Merck & Co., Inc. from $125.00 to $145.00 and gave the company a "neutral" rating in a report on Monday, October 12th. Weiss Ratings raised Merck & Co., Inc. from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, August 25th. Finally, UBS Group raised their price target on Merck & Co., Inc. from $145.00 to $175.00 and gave the stock a "buy" rating in a report on Thursday, August 20th. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $155.74.

Merck & Co., Inc. Stock Performance

Merck & Co., Inc. stock opened at $146.76 on Friday. The firm has a fifty day simple moving average of $146.45 and a two-hundred day simple moving average of $127.45. 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. has a twelve month low of $84.35 and a twelve month high of $156.92. The company has a market capitalization of $362.08 billion, a PE ratio of 151.30, a P/E/G ratio of 6.83 and a beta of 0.13.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The company reported $2.49 EPS for the quarter, topping analysts' consensus estimates of $2.09 by $0.40. The business had revenue of $18.09 billion for the quarter, compared to analysts' expectations of $17.33 billion. Merck & Co., Inc. had a return on equity of 16.56% and a net margin of 3.64%. The business's quarterly revenue was up 4.7% on a year-over-year basis. During the same period in the previous year, the firm earned $2.58 EPS. Research analysts expect that Merck & Co., Inc. will post 2.85 EPS for the current year.

Insider Transactions at Merck & Co., Inc.

In related news, EVP Richard R. Deluca sold 11,699 shares of the firm's stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $131.63, for a total value of $1,539,939.37. Following the completion of the sale, the executive vice president owned 110,167 shares of the company's stock, valued at $14,501,282.21. This trade represents 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 link. Also, EVP Chirfi Guindo sold 10,000 shares of Merck & Co., Inc. stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $135.00, for a total transaction of $1,350,000.00. Following the completion of the sale, the executive vice president owned 36,613 shares in the company, valued at approximately $4,942,755. This trade represents a 21.45% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 135,635 shares of company stock worth $18,011,040. 0.17% of the stock is currently owned by insiders.

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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