Merck & Co., Inc. $MRK Stock: Mondrian Investment Partners LTD Cuts Holdings

Key Points

• Mondrian Investment Partners cut its Merck stake by 60.4% in the third quarter, selling 889,899 shares and retaining 584,046 shares valued at approximately $84.9 million. Institutional investors collectively own 76.07% of Merck.
• Merck and Moderna reported positive Phase 3 results for their personalized melanoma vaccine combined with Keytruda, reducing recurrence or death risk by 42%; the EU also approved Keytruda plus Padcev for resectable muscle-invasive bladder cancer.
• Despite favorable pipeline news, investors face concerns over Merck’s high valuation, reliance on Keytruda ahead of its patent cliff, insider selling, and reduced earnings estimates. Analysts maintain a “Moderate Buy” consensus with an average price target of $151.92.

Mondrian Investment Partners LTD lessened its holdings in shares of Merck & Co., Inc. (NYSE:MRK - Free Report) by 60.4% during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 584,046 shares of the company's stock after selling 889,899 shares during the quarter. Merck & Co., Inc. makes up about 1.8% of Mondrian Investment Partners LTD's investment portfolio, making the stock its 19th biggest position. Mondrian Investment Partners LTD's holdings in Merck & Co., Inc. were worth $84,868,000 as of its most recent SEC filing.

Other hedge funds have also made changes to their positions in the company. Bullseye Investment Management LLC purchased a new stake in shares of Merck & Co., Inc. in the second quarter valued at $27,000. Curry Webb Wealth Management LLC acquired a new position in Merck & Co., Inc. in the third quarter valued at $29,000. Horizons Wealth Management purchased a new position in Merck & Co., Inc. during the third quarter worth about $30,000. Graney & King LLC lifted its position in Merck & Co., Inc. by 400.0% during the second quarter. Graney & King LLC now owns 250 shares of the company's stock worth $32,000 after buying an additional 200 shares during the period. Finally, Montgomery Financial Services LLC purchased a new position in Merck & Co., Inc. during the second quarter worth about $41,000. Institutional investors and hedge funds own 76.07% of the company's stock.

Key Merck & Co., Inc. News

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

• Positive Sentiment: Merck and Moderna reported positive Phase 3 INTerpath-001 results for the personalized melanoma vaccine, intismeran, combined with Keytruda. The treatment reduced the risk of recurrence or death by 42% and also improved distant metastasis-free survival, supporting the long-term potential of the partnership’s oncology pipeline. Doctors call Moderna and Merck cancer vaccine data a major advancement
• Positive Sentiment: The European Commission approved Keytruda plus Padcev as a perioperative treatment for resectable muscle-invasive bladder cancer, regardless of patients’ cisplatin eligibility. The broader label expands the addressable market and represents the EU’s first approval of a PD-1 inhibitor combined with an antibody-drug conjugate in this setting. Merck wins EU approval for Keytruda plus Padcev
• Neutral Sentiment: Despite strong clinical results, the vaccine announcement triggered a “sell-the-news” reaction. The data largely met elevated Wall Street expectations after an earlier leak, limiting the immediate upside for MRK even though oncologists viewed the results as an important treatment advance. Merck and Moderna shares fall on cancer vaccine results
• Negative Sentiment: Investors remain concerned about valuation and Merck’s future revenue concentration in Keytruda ahead of its patent cliff. Analysts have also characterized the recent rally as leaving limited margin of safety, increasing the risk of profit-taking when news is merely in line with expectations. Merck rally leaves little margin of safety
• Negative Sentiment: Erste Group Bank reduced its FY2026 EPS estimate to $2.63 from $2.73 and its FY2027 estimate to $9.38 from $9.47. Separate previews also anticipate a year-over-year decline in quarterly earnings, adding near-term pressure to the shares. Merck earnings preview

Analysts Set New Price Targets

A number of analysts have issued reports on MRK shares. Guggenheim raised their price target on Merck & Co., Inc. from $146.00 to $170.00 and gave the stock a "buy" rating in a research note on Tuesday, September 8th. Barclays upped their price objective on shares of Merck & Co., Inc. from $140.00 to $150.00 and gave the company an "overweight" rating in a research note on Wednesday, July 29th. Berenberg Bank increased 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. Zacks Research lowered shares of Merck & Co., Inc. from a "hold" rating to a "strong sell" rating in a report on Monday, October 19th. Finally, BMO Capital Markets raised their target price on shares of Merck & Co., Inc. from $142.00 to $170.00 and gave the stock an "outperform" rating in a research report on Thursday, August 20th. Seventeen equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $151.92.

Insider Activity

In other news, EVP David Williams sold 52,847 shares of the firm's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $128.77, for a total value of $6,805,108.19. Following the transaction, the executive vice president directly owned 31,716 shares in the company, valued at $4,084,069.32. This trade represents a 62.49% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Richard R. Deluca sold 11,699 shares of the firm's stock in a transaction dated 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 transaction, the executive vice president owned 110,167 shares in the company, valued at approximately $14,501,282.21. This trade represents a 9.60% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 228,238 shares of company stock valued at $29,977,783 in the last 90 days. 0.17% of the stock is owned by corporate insiders.

Merck & Co., Inc. Stock Down 1.4%

Shares of NYSE MRK opened at $145.25 on Friday. Merck & Co., Inc. has a 52-week low of $82.01 and a 52-week high of $156.92. The firm has a fifty day moving average of $146.98 and a 200-day moving average of $130.17. The stock has a market capitalization of $358.35 billion, a PE ratio of 116.20, a P/E/G ratio of 6.74 and a beta of 0.21. 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. (NYSE:MRK - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported ($0.13) EPS for the quarter, topping analysts' consensus estimates of ($0.26) by $0.13. The business had revenue of $16.61 billion during the quarter, compared to the consensus estimate of $16.37 billion. Merck & Co., Inc. had a return on equity of 16.73% and a net margin of 4.77%. The business's revenue for the quarter was up 5.1% on a year-over-year basis. During the same period in the prior year, the firm posted $2.13 EPS. Merck & Co., Inc. has set its FY 2026 guidance at 2.660-2.760 EPS. On average, analysts anticipate that Merck & Co., Inc. will post 2.64 EPS for the current year.

Merck & Co., Inc. Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, October 7th. Shareholders of record on Tuesday, September 15th were given a dividend of $0.85 per share. This represents a $3.40 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend was Tuesday, September 15th. Merck & Co., Inc.'s payout ratio is 272.00%.

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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