Smead Capital Management Inc. Sells 196,374 Shares of Merck & Co., Inc. $MRK

Key Points

• Smead Capital Management trimmed its Merck stake by 6.5% in the fourth quarter, selling 196,374 shares and leaving it with 2.84 million shares valued at about $298.8 million. Merck remains the fund’s second-largest holding, making up 6.2% of its portfolio.
• Wall Street sentiment on Merck is still broadly positive, with analysts assigning a Moderate Buy consensus and an average target price of $128.18. Recent calls included a neutral stance from Citigroup, a lowered target from Wells Fargo, and a buy upgrade from Deutsche Bank.
• Merck’s latest quarter beat expectations, posting better-than-expected EPS and revenue while raising guidance, and the stock has also been supported by encouraging oncology news around Keytruda combinations. However, weak Gardasil sales remain a headwind outside its cancer pipeline.

Smead Capital Management Inc. lessened its stake in shares of Merck & Co., Inc. (NYSE:MRK - Free Report) by 6.5% during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 2,838,300 shares of the company's stock after selling 196,374 shares during the period. Merck & Co., Inc. accounts for about 6.2% of Smead Capital Management Inc.'s portfolio, making the stock its 2nd largest position. Smead Capital Management Inc. owned approximately 0.11% of Merck & Co., Inc. worth $298,759,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors also recently modified their holdings of the company. Kingdom Financial Group LLC. acquired a new position in shares of Merck & Co., Inc. during the fourth quarter worth approximately $25,000. High Note Wealth LLC raised its position in shares of Merck & Co., Inc. by 58.9% during the fourth quarter. High Note Wealth LLC now owns 294 shares of the company's stock worth $31,000 after purchasing an additional 109 shares during the period. Tucker Asset Management LLC acquired a new position in shares of Merck & Co., Inc. during the fourth quarter worth approximately $34,000. Entrust Financial LLC acquired a new position in shares of Merck & Co., Inc. during the fourth quarter worth approximately $37,000. Finally, United Financial Planning Group LLC acquired a new position in shares of Merck & Co., Inc. during the third quarter worth approximately $31,000. Institutional investors and hedge funds own 76.07% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the company. Weiss Ratings lowered Merck & Co., Inc. from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, May 15th. Citigroup assumed coverage on Merck & Co., Inc. in a research report on Wednesday, May 6th. They set a "neutral" rating and a $125.00 target price on the stock. Wells Fargo & Company lowered their price target on Merck & Co., Inc. from $150.00 to $145.00 and set an "overweight" rating for the company in a research report on Friday, May 1st. Deutsche Bank Aktiengesellschaft raised Merck & Co., Inc. from a "hold" rating to a "buy" rating and set a $150.00 price target for the company in a research report on Friday, February 13th. Finally, Royal Bank Of Canada reissued an "outperform" rating and issued a $142.00 price target on shares of Merck & Co., Inc. in a research report on Monday, March 30th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $128.18.

Merck & Co., Inc. Trading Up 5.8%

NYSE MRK opened at $122.55 on Friday. The firm has a market capitalization of $302.67 billion, a P/E ratio of 34.52, a PEG ratio of 2.76 and a beta of 0.18. The business has a fifty day simple moving average of $115.92 and a 200 day simple moving average of $110.22. Merck & Co., Inc. has a 12 month low of $75.40 and a 12 month high of $125.14. The company has a current ratio of 1.30, a quick ratio of 1.06 and a debt-to-equity ratio of 1.02.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The company reported ($1.28) EPS for the quarter, beating analysts' consensus estimates of ($1.47) by $0.19. The business had revenue of $16.29 billion during the quarter, compared to analyst estimates of $15.85 billion. Merck & Co., Inc. had a return on equity of 27.55% and a net margin of 13.59%.Merck & Co., Inc.'s quarterly revenue was up 4.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.22 EPS. Merck & Co., Inc. has set its FY 2026 guidance at 5.040-5.160 EPS. On average, analysts predict that Merck & Co., Inc. will post 5.16 EPS for the current fiscal year.

Merck & Co., Inc. News Summary

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

• Positive Sentiment: Merck and partner Sichuan Kelun-Biotech reported encouraging late-stage lung cancer data for a Keytruda combination, with the treatment beating Keytruda alone and improving confidence in Merck’s cancer pipeline. Kelun, Merck's lung cancer combo improves survival in late-stage China trial
• Positive Sentiment: The European Medicines Agency’s CHMP issued a positive opinion for Keytruda plus Padcev as a perioperative treatment for certain bladder cancer patients, which could expand the drug pair’s commercial reach if formally approved. Merck Receives Positive EU CHMP Opinion for KEYTRUDA Plus Padcev
• Positive Sentiment: Additional coverage highlighted positive EU recommendations and trial momentum across Merck’s oncology portfolio, suggesting the company is building new growth drivers ahead of future Keytruda patent pressure. Merck stock jumps as Keytruda combo trials boost cancer pipeline
• Neutral Sentiment: Some commentary noted Gardasil sales remain weak due to soft demand in China and other markets, which is a reminder that Merck still has headwinds outside oncology. Will Weak Gardasil Sales Continue to Ail MRK's Vaccines Sales in 2026?
• Neutral Sentiment: Merck’s recent run-up also reflects broader investor optimism after strong quarterly results and improving sentiment around its pipeline, rather than a single one-day event. Merck Stock Climbs on Cancer Data. Why the Drugmaker Is More Than a One-Trick Pony.

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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