Principal Financial Group Inc. Buys 41,537 Shares of Merck & Co., Inc. $MRK

Key Points

• Principal Financial Group increased its Merck position by 0.9%, purchasing 41,537 shares and bringing its holdings to 4.75 million shares valued at approximately $610.6 million. Institutional investors and hedge funds collectively own 76.07% of Merck.
• Merck reported quarterly revenue of $16.61 billion and adjusted EPS of a $0.13 loss, both ahead of analyst expectations, while revenue rose 5.1% year over year. The company also declared a quarterly dividend of $0.85 per share, equivalent to a 2.2% yield.
• Analysts broadly remain positive, with a “Moderate Buy” consensus and an average price target of $144.10, though some firms cited valuation concerns and risks surrounding Keytruda’s expected 2028 loss of exclusivity. Merck insiders have sold 228,238 shares worth nearly $30 million over the past three months.

Principal Financial Group Inc. increased its position in Merck & Co., Inc. (NYSE:MRK - Free Report) by 0.9% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 4,751,479 shares of the company's stock after buying an additional 41,537 shares during the period. Principal Financial Group Inc. owned 0.19% of Merck & Co., Inc. worth $610,565,000 at the end of the most recent reporting period.

A number of other institutional investors have also added to or reduced their stakes in the company. D.A. Davidson & CO. increased its holdings in Merck & Co., Inc. by 4.4% during the 4th quarter. D.A. Davidson & CO. now owns 576,959 shares of the company's stock worth $60,731,000 after purchasing an additional 24,576 shares in the last quarter. Pinnbrook Capital Management LP raised its stake in shares of Merck & Co., Inc. by 95.2% in the fourth quarter. Pinnbrook Capital Management LP now owns 23,280 shares of the company's stock worth $2,450,000 after purchasing an additional 11,355 shares during the last quarter. Cibc World Market Inc. lifted its holdings in shares of Merck & Co., Inc. by 32.6% in the fourth quarter. Cibc World Market Inc. now owns 1,301,744 shares of the company's stock valued at $137,022,000 after purchasing an additional 320,143 shares in the last quarter. Handelsbanken Fonder AB lifted its holdings in shares of Merck & Co., Inc. by 13.9% in the fourth quarter. Handelsbanken Fonder AB now owns 1,843,042 shares of the company's stock valued at $193,999,000 after purchasing an additional 224,752 shares in the last quarter. Finally, Panagora Asset Management Inc. boosted its position in shares of Merck & Co., Inc. by 410.5% during the fourth quarter. Panagora Asset Management Inc. now owns 705,442 shares of the company's stock valued at $74,255,000 after buying an additional 567,249 shares during the last quarter. 76.07% of the stock is owned by institutional investors and hedge funds.

Merck & Co., Inc. Price Performance

MRK opened at $152.43 on Friday. The firm has a market cap of $376.07 billion, a P/E ratio of 121.94, a PEG ratio of 6.43 and a beta of 0.19. The firm has a 50-day moving average of $128.09 and a 200 day moving average of $121.23. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.10 and a current ratio of 1.32. Merck & Co., Inc. has a fifty-two week low of $77.58 and a fifty-two week high of $154.49.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported ($0.13) earnings per share (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 net margin of 4.77% and a return on equity of 16.73%. The firm's quarterly revenue was up 5.1% compared to the same quarter last year. During the same quarter last year, the company posted $2.13 earnings per share. Merck & Co., Inc. has set its FY 2026 guidance at 2.660-2.760 EPS. On average, research analysts expect that Merck & Co., Inc. will post 2.77 EPS for the current year.

Merck & Co., Inc. Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Tuesday, September 15th will be paid a dividend of $0.85 per share. The ex-dividend date is Tuesday, September 15th. This represents a $3.40 annualized dividend and a dividend yield of 2.2%. Merck & Co., Inc.'s dividend payout ratio (DPR) is presently 272.00%.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the company. Wall Street Zen upgraded Merck & Co., Inc. from a "hold" rating to a "buy" rating in a report on Saturday. JPMorgan Chase & Co. raised their price objective on Merck & Co., Inc. from $135.00 to $140.00 and gave the company an "overweight" rating in a research note on Monday, July 13th. Weiss Ratings downgraded shares of Merck & Co., Inc. from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, August 11th. Citigroup began coverage on shares of Merck & Co., Inc. in a research note on Wednesday, May 6th. They issued a "neutral" rating and a $125.00 target price for the company. Finally, The Goldman Sachs Group increased their target price on shares of Merck & Co., Inc. from $140.00 to $160.00 and gave the company a "buy" rating in a report on Friday. Fifteen investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $144.10.

Insider Buying and Selling

In other Merck & Co., Inc. news, EVP Jennifer Zachary sold 80,315 shares of the stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $133.46, for a total transaction of $10,718,839.90. Following the completion of the transaction, the executive vice president directly owned 45,509 shares of the company's stock, valued at approximately $6,073,631.14. This represents a 63.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP David R. Maraldo sold 18,706 shares of the firm's 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 completion of the sale, the executive vice president directly owned 18,212 shares of the company's stock, valued at $2,344,248.64. This represents a 50.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 228,238 shares of company stock worth $29,977,783 in the last three months. Insiders own 0.17% of the company's stock.

Key Headlines Impacting Merck & Co., Inc.

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

• Positive Sentiment: Merck and Moderna reported that their personalized cancer therapy met key Phase 3 goals, improving recurrence-free and distant metastasis-free survival for high-risk melanoma patients when added to Keytruda. The result is the first major late-stage win for an mRNA cancer vaccine and strengthens the potential for regulatory approval and broader oncology applications. MRK/MRNA's Personalized Cancer Therapy Delivers First Phase III Win
• Positive Sentiment: Several Wall Street firms raised their outlooks for MRK: Goldman Sachs increased its price target to $160 and kept a Buy rating, while BMO raised its target to $170 and UBS lifted its target to $175. Morgan Stanley also upgraded the shares to Overweight with a $179 target after the cancer-trial success.
• Positive Sentiment: Investors see Merck’s newer products, acquired assets and pipeline programs as a potential growth cushion against Keytruda’s eventual patent expiration. The company’s expanding portfolio could help diversify revenue beyond its flagship drug. Can Merck's New Drugs Offer Growth Cushion Ahead of Keytruda LOE?
• Neutral Sentiment: Unusually high options activity indicates heightened investor interest and potential volatility, but it does not by itself establish the direction of the stock.
• Negative Sentiment: RBC Capital Markets downgraded Merck to Sector Perform and set a $150 target, arguing that execution risks and the 2028 Keytruda loss of exclusivity are being underestimated. RBC said near-term catalysts are attractive, but the stock’s valuation leaves limited room for additional gains. Merck upgraded at Morgan Stanley after cancer trial win; RBC downgrades
• Negative Sentiment: Jefferies separately moved Merck from Strong Buy to Hold. The central concern is that the shares have already rallied substantially on the trial news, making the current valuation appear demanding relative to the remaining patent and execution risks.

Merck & Co., Inc. Company Profile

Merck & Co, Inc is a global biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines, vaccines, biologic therapies and animal health products. Its portfolio spans multiple therapeutic areas with a particular emphasis on oncology, vaccines and infectious disease, as well as therapies for metabolic and chronic conditions. Among its well-known products are the cancer immunotherapy Keytruda (pembrolizumab) and the human papillomavirus vaccine Gardasil; the company also markets a range of medicines and vaccines for veterinary use through Merck Animal Health.

Founded in the late 19th century as the U.S.

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