Merck & Co., Inc. $MRK Stock: Willis Investment Counsel Cuts Holdings

Key Points

• Willis Investment Counsel cut its Merck stake by 23.9% in the third quarter, selling 74,700 shares and retaining 238,067 shares worth approximately $34.6 million. Institutional investors collectively own 76.07% of MRK.
• Analysts remain broadly positive, with 17 Buy ratings and 10 Holds, producing a “Moderate Buy” consensus and an average price target of $151.92. Shares recently traded at $147.93, near their 12-month high of $156.92.
• Merck reported quarterly revenue of $16.61 billion, above expectations, while maintaining a quarterly dividend of $0.85 per share, equivalent to a 2.3% annual yield.

Willis Investment Counsel decreased its position in Merck & Co., Inc. (NYSE:MRK - Free Report) by 23.9% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 238,067 shares of the company's stock after selling 74,700 shares during the quarter. Merck & Co., Inc. comprises approximately 1.5% of Willis Investment Counsel's investment portfolio, making the stock its 17th biggest position. Willis Investment Counsel's holdings in Merck & Co., Inc. were worth $34,594,000 at the end of the most recent reporting period.

Other large investors also recently made changes to their positions in the company. Ballast Inc. increased its holdings in shares of Merck & Co., Inc. by 4.6% during the third quarter. Ballast Inc. now owns 4,130 shares of the company's stock worth $600,000 after purchasing an additional 180 shares during the period. Lakeside Advisors INC. acquired a new stake in shares of Merck & Co., Inc. in the third quarter valued at approximately $217,000. Tred Avon Family Wealth LLC raised its position in shares of Merck & Co., Inc. by 26.0% in the third quarter. Tred Avon Family Wealth LLC now owns 5,818 shares of the company's stock valued at $845,000 after buying an additional 1,200 shares in the last quarter. Eagle Wealth Advisors LLC boosted its stake in shares of Merck & Co., Inc. by 5.5% in the third quarter. Eagle Wealth Advisors LLC now owns 2,065 shares of the company's stock valued at $302,000 after buying an additional 108 shares during the period. Finally, Family Wealth Partners LLC boosted its stake in shares of Merck & Co., Inc. by 15.0% in the third quarter. Family Wealth Partners LLC now owns 2,690 shares of the company's stock valued at $391,000 after buying an additional 350 shares during the period. Institutional investors own 76.07% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on MRK. Barclays upped their target price on Merck & Co., Inc. from $140.00 to $150.00 and gave the company an "overweight" rating in a research report on Wednesday, July 29th. Weiss Ratings upgraded Merck & Co., Inc. from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, August 25th. HSBC raised their price target on Merck & Co., Inc. from $150.00 to $172.00 and gave the stock a "buy" rating in a research report on Thursday, September 10th. Jefferies Financial Group boosted their price target on Merck & Co., Inc. from $152.00 to $175.00 and gave the company a "buy" rating in a research note on Thursday, August 20th. Finally, BMO Capital Markets upped their price objective 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 research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $151.92.

Merck & Co., Inc. Price Performance

Shares of MRK stock traded up $4.30 on Tuesday, hitting $147.93. 3,373,291 shares of the company's stock were exchanged, compared to its average volume of 10,607,921. The company has a 50 day moving average of $145.86 and a 200 day moving average of $129.48. The stock has a market cap of $364.98 billion, a P/E ratio of 118.43, a price-to-earnings-growth ratio of 6.74 and a beta of 0.21. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.32 and a quick ratio of 1.10. Merck & Co., Inc. has a 12 month low of $82.01 and a 12 month high of $156.92.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported ($0.13) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.26) by $0.13. The firm had revenue of $16.61 billion for the quarter, compared to analysts' expectations 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 quarter in the previous year, the business posted $2.13 earnings per share. Merck & Co., Inc. has set its FY 2026 guidance at 2.660-2.760 EPS. On average, equities research analysts predict that Merck & Co., Inc. will post 2.66 EPS for the current year.

Merck & Co., Inc. Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, October 7th. Investors of record on Tuesday, September 15th were paid a $0.85 dividend. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $3.40 annualized dividend and a yield of 2.3%. Merck & Co., Inc.'s dividend payout ratio is presently 272.00%.

Key Stories Impacting Merck & Co., Inc.

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

• Positive Sentiment: Investors are evaluating Merck & Co.’s Phase 3 melanoma results, which could strengthen the company’s oncology pipeline and support the long-term outlook for its cancer-drug franchise. The market’s reaction to the data is the most relevant near-term catalyst for MRK. How Investors Are Reacting To Merck Phase 3 Melanoma Results
• Positive Sentiment: Merck’s investment case continues to include a reliable dividend, strong global pharmaceutical operations and Keytruda’s leading position in oncology. The company also raised its 2026 sales outlook in its latest reported quarter, providing some support for the recovery thesis. Merck’s 2.4% Dividend Yield
• Neutral Sentiment: Articles comparing Merck with Amgen frame MRK as an income-oriented stock whose future returns depend on dividend growth, sales execution and replacing revenue as major products mature. This is a longer-term valuation consideration rather than a direct trading catalyst. Merck vs. Amgen Dividend Comparison
• Neutral Sentiment: Merck KGaA agreed to acquire Silence Therapeutics for $20 per American depositary share, a 130% premium. The deal drove SLN sharply higher but does not represent an acquisition by Merck & Co. and should not be treated as an MRK-specific catalyst. Silence Therapeutics Gets Premium Offer From Merck KGaA
• Negative Sentiment: Exchange-traded funds were reported as net sellers of MRK on October 16, suggesting some passive or institutional selling pressure. The flow is a short-term technical headwind, although it does not by itself change Merck’s fundamentals. ETFs Are Net Sellers of Merck

Insiders Place Their Bets

In other news, EVP David Williams sold 52,847 shares of the company's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $128.77, for a total transaction of $6,805,108.19. Following the completion of the transaction, the executive vice president directly owned 31,716 shares in the company, valued at approximately $4,084,069.32. This represents a 62.49% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Chirfi Guindo sold 15,000 shares of the 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 completion of the transaction, the executive vice president owned 46,613 shares of the company's stock, valued at $6,106,303. The trade was a 24.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 228,238 shares of company stock worth $29,977,783 over the last 90 days. Insiders own 0.17% of the company's stock.

Merck & Co., Inc. Company Profile

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.

Want to see what other hedge funds are holding MRK? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Merck & Co., Inc. (NYSE:MRK - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.