Merck & Co., Inc. $MRK Stock Holdings Cut by Salem Investment Counselors Inc.

Key Points

• Salem Investment Counselors reduced its Merck stake by 5.7% in the third quarter, selling 10,058 shares and retaining 166,272 shares valued at approximately $24.3 million. Institutional investors collectively own 76.07% of MRK.
• Analyst sentiment remains generally positive, with 17 Buy ratings and 10 Holds, producing a “Moderate Buy” consensus and an average price target of $151.92. Recent targets range as high as $165 from JPMorgan.
• Merck reported quarterly revenue of $16.61 billion, ahead of expectations, and declared a quarterly dividend of $0.85, equivalent to a 2.4% yield. However, insider selling and concerns about the commercial outlook for remigromig represent potential risks.

Salem Investment Counselors Inc. cut its holdings in shares of Merck & Co., Inc. (NYSE:MRK - Free Report) by 5.7% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 166,272 shares of the company's stock after selling 10,058 shares during the quarter. Salem Investment Counselors Inc.'s holdings in Merck & Co., Inc. were worth $24,290,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP increased its stake in shares of Merck & Co., Inc. by 23.8% in the first quarter. Dimensional Fund Advisors LP now owns 15,456,039 shares of the company's stock worth $1,858,938,000 after purchasing an additional 2,969,856 shares in the last quarter. Bank of America Corp DE raised 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 purchasing an additional 2,919,780 shares during the period. Corient Private Wealth LLC lifted its stake in shares of Merck & Co., Inc. by 114.7% during the 4th quarter. Corient Private Wealth LLC now owns 5,210,548 shares of the company's stock valued at $548,462,000 after buying an additional 2,783,482 shares in the last quarter. Employees Provident Fund Board purchased a new stake in shares of Merck & Co., Inc. during the 4th quarter valued at approximately $254,206,000. Finally, Diamant Asset Management Inc. lifted its stake in shares of Merck & Co., Inc. by 12,130.3% during the 1st quarter. Diamant Asset Management Inc. now owns 2,068,387 shares of the company's stock valued at $248,806,000 after buying an additional 2,051,475 shares in the last quarter. Institutional investors own 76.07% of the company's stock.

Analysts Set New Price Targets

Several research analysts recently commented on the stock. Berenberg Bank raised their price objective on shares of Merck & Co., Inc. from $127.00 to $137.00 and gave the stock a "hold" rating in a report on Friday, September 11th. Wall Street Zen cut shares of Merck & Co., Inc. from a "buy" rating to a "hold" rating in a report on Saturday, October 3rd. The Goldman Sachs Group increased their target price on Merck & Co., Inc. from $140.00 to $160.00 and gave the stock a "buy" rating in a research report on Friday, August 21st. JPMorgan Chase & Co. increased their target price on Merck & Co., Inc. from $150.00 to $165.00 and gave the stock an "overweight" rating in a research report on Monday, October 5th. Finally, Leerink Partners raised their price target on Merck & Co., Inc. from $127.00 to $161.00 and gave the stock an "outperform" rating in a report on Wednesday, September 9th. Seventeen research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $151.92.

Merck & Co., Inc. Price Performance

MRK stock opened at $141.97 on Wednesday. The firm has a 50 day moving average of $144.52 and a 200-day moving average of $128.73. The company has a current ratio of 1.32, a quick ratio of 1.10 and a debt-to-equity ratio of 1.22. Merck & Co., Inc. has a 12 month low of $82.01 and a 12 month high of $156.92. The firm has a market capitalization of $350.27 billion, a P/E ratio of 113.58, a price-to-earnings-growth ratio of 6.72 and a beta of 0.21.

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

Merck & Co., Inc. Dividend Announcement

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

Key Merck & Co., Inc. News

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.

Insider Activity

In related news, EVP David R. Maraldo sold 18,706 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $128.72, for a total value of $2,407,836.32. Following the sale, the executive vice president owned 18,212 shares in the company, valued at approximately $2,344,248.64. This trade represents a 50.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Chirfi Guindo sold 15,000 shares of Merck & Co., Inc. stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $131.00, for a total value of $1,965,000.00. Following the sale, the executive vice president directly owned 46,613 shares of the company's stock, valued at $6,106,303. This represents a 24.35% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 228,238 shares of company stock worth $29,977,783. Company insiders own 0.17% of the company's stock.

Merck & Co., Inc. 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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