Merck & Co., Inc. $MRK Stock: Aberdeen Group plc Decreases Stake

Key Points

• Aberdeen Group cut its Merck stake by 87.4% in the third quarter, selling 3,765,570 shares and retaining 544,186 shares valued at about $79.1 million.
• Merck reported quarterly EPS of $2.49, beating the $2.09 consensus, and revenue of $18.09 billion, above estimates and up 4.7% year over year.
• Analysts hold a Moderate Buy consensus rating with a $155.74 average price target. European regulators also recommended expanding uses for two Merck medicines, though European Commission approval is still required.

Aberdeen Group plc cut its holdings in Merck & Co., Inc. (NYSE:MRK - Free Report) by 87.4% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 544,186 shares of the company's stock after selling 3,765,570 shares during the period. Aberdeen Group plc's holdings in Merck & Co., Inc. were worth $79,076,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of the business. Vestor Capital LLC increased its stake in Merck & Co., Inc. by 16,530.7% in the 3rd quarter. Vestor Capital LLC now owns 27,607 shares of the company's stock worth $4,012,000 after buying an additional 27,441 shares in the last quarter. Susquehanna Fundamental Investments LLC bought a new stake in Merck & Co., Inc. during the second quarter valued at about $11,470,000. Russell Investments Group Ltd. raised its holdings in Merck & Co., Inc. by 2.0% during the second quarter. Russell Investments Group Ltd. now owns 2,578,024 shares of the company's stock valued at $331,931,000 after acquiring an additional 51,393 shares during the period. Cardinal Capital Management lifted its position in shares of Merck & Co., Inc. by 3.6% in the third quarter. Cardinal Capital Management now owns 99,742 shares of the company's stock valued at $14,578,000 after acquiring an additional 3,507 shares in the last quarter. Finally, The Manufacturers Life Insurance Company lifted its position in shares of Merck & Co., Inc. by 12.3% in the second quarter. The Manufacturers Life Insurance Company now owns 2,073,176 shares of the company's stock valued at $266,403,000 after acquiring an additional 227,589 shares in the last quarter. Hedge funds and other institutional investors own 76.07% of the company's stock.

Merck & Co., Inc. Stock Performance

MRK opened at $147.74 on Friday. The stock has a market capitalization of $364.21 billion, a price-to-earnings ratio of 152.31, a PEG ratio of 6.74 and a beta of 0.13. The company has a fifty day moving average of $146.16 and a 200 day moving average of $128.61. Merck & Co., Inc. has a fifty-two week low of $91.49 and a fifty-two week high of $156.92. The company has a debt-to-equity ratio of 1.11, a quick ratio of 1.14 and a current ratio of 1.35.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The company reported $2.49 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.09 by $0.40. The company had revenue of $18.09 billion for the quarter, compared to the consensus estimate of $17.33 billion. Merck & Co., Inc. had a net margin of 3.64% and a return on equity of 16.73%. Merck & Co., Inc.'s revenue for the quarter was up 4.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.58 EPS. As a group, sell-side analysts forecast that Merck & Co., Inc. will post 2.82 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of research firms have recently weighed in on MRK. Argus began coverage on Merck & Co., Inc. in a research note on Tuesday, November 3rd. They issued a "strong-buy" rating for the company. Freedom Broker increased their target price on Merck & Co., Inc. from $125.00 to $140.00 and gave the stock a "hold" rating in a research report on Monday, November 2nd. Wells Fargo & Company lifted their target price on Merck & Co., Inc. from $150.00 to $170.00 and gave the company an "overweight" rating in a research note on Friday, September 4th. Daiwa Securities Group raised Merck & Co., Inc. from a "neutral" rating to an "outperform" rating and set a $143.00 target price on the stock in a research note on Wednesday, August 12th. Finally, TD Cowen boosted their price target on Merck & Co., Inc. from $137.00 to $155.00 and gave the stock a "hold" rating in a report on Wednesday, September 23rd. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $155.74.

Recent Merck & Co., Inc. Headlines

Here are a few of the latest headlines about MRK:

• Positive Sentiment: The EMA’s CHMP recommended expanding ENFLONSIA’s use to help prevent severe RSV lower respiratory tract disease in vulnerable children up to 24 months old, including through their second RSV season. The broader eligible population could support the medicine’s commercial opportunity in Europe. Merck ENFLONSIA CHMP recommendation
• Positive Sentiment: The CHMP also recommended WELIREG plus lenvatinib for adults with advanced clear-cell renal cell carcinoma after anti-PD-1/PD-L1 treatment. This would extend WELIREG into another treatment setting and expand Merck’s oncology portfolio in Europe. Merck WELIREG CHMP recommendation
• Neutral Sentiment: Both decisions are CHMP recommendations; European Commission approval is still needed. Any financial contribution will also depend on launch timing, uptake and competition.

About Merck & Co., Inc.

Merck & Co., Inc. is a global pharmaceutical company that develops and markets prescription medicines, vaccines, biologic therapies and animal-health products. The company's research and commercial activities span areas including oncology, infectious diseases, vaccines, cardiovascular disease and immunology. Its products include the cancer medicine Keytruda and the Gardasil vaccine. Founded in the United States in 1891, Merck & Co. became an independent company in 1917. It is headquartered in Rahway, New Jersey, and operates internationally.

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