Merck & Co., Inc. (NYSE:MRK) Reaches New 12-Month High Following Analyst Upgrade

Key Points

• Merck shares hit a new 52-week high after Bank of America raised its price target to $141 from $130 and reiterated a buy rating. The stock traded as high as $130.29 intraday.
• Wall Street sentiment remains broadly positive, with Scotiabank lifting its target to $155 and several other firms maintaining buy or outperform views. Merck now has a consensus rating of Moderate Buy and a consensus price target of $131.83.
• Analysts are watching Merck’s pipeline and regulatory headlines, including potential upside from its lung cancer drug program, while the company also faces a U.S. House investigation into clinical trials conducted in China. These developments could shape investor sentiment going forward.

Merck & Co., Inc. (NYSE:MRK - Get Free Report)'s share price hit a new 52-week high on Wednesday after Bank of America raised their price target on the stock from $130.00 to $141.00. Bank of America currently has a buy rating on the stock. Merck & Co., Inc. traded as high as $130.29 and last traded at $128.41, with a volume of 11819460 shares. The stock had previously closed at $129.38.

A number of other equities research analysts also recently weighed in on MRK. Citigroup began coverage on Merck & Co., Inc. in a research report on Wednesday, May 6th. They set a "neutral" rating and a $125.00 target price for the company. Zacks Research upgraded Merck & Co., Inc. from a "strong sell" rating to a "hold" rating in a report on Tuesday, March 17th. Wall Street Zen upgraded Merck & Co., Inc. from a "hold" rating to a "buy" rating in a research report on Saturday, June 6th. Royal Bank Of Canada reissued an "outperform" rating and set a $142.00 price objective on shares of Merck & Co., Inc. in a report on Monday, March 30th. Finally, Scotiabank raised their target price on shares of Merck & Co., Inc. from $136.00 to $155.00 and gave the company a "sector outperform" rating in a research note on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $131.83.

Trending Headlines about Merck & Co., Inc.

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

• Positive Sentiment: Bank of America raised its price target on Merck to $141 from $130 and reiterated a buy rating, while Scotiabank lifted its target to $155 from $136 with a sector outperform view, signaling stronger Wall Street confidence in the stock’s upside. Bank of America and Scotiabank raise Merck price targets
• Positive Sentiment: Analysts also highlighted Merck’s lung cancer drug pipeline, saying an upcoming phase 3 readout for OptiTrop-Lung06 could improve the commercial outlook for SAC-TMT and boost future sales potential. Merck's Lung Cancer Drug Seen Boosting Sales Potential, BofA Says
• Positive Sentiment: Merck announced an agreement with the ADAP Crisis Task Force to improve access to HIV treatment through state programs, which may modestly support sentiment around its infectious-disease franchise. Merck Announces New Agreement with ADAP Crisis Task Force
• Neutral Sentiment: Broader healthcare stocks were softer late Tuesday, which may have added some pressure even as Merck continued to attract company-specific buying interest. Sector Update: Healthcare Stocks Softer Late Afternoon
• Negative Sentiment: Merck is also facing a bipartisan U.S. House investigation into whether clinical trials conducted in China, including at military-linked hospitals and in Xinjiang, raised national security or data-protection concerns, which could weigh on sentiment if the probe escalates. Merck (MRK) Faces U.S. Security Probe Over China Clinical Trials

Institutional Investors Weigh In On Merck & Co., Inc.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC raised its position in shares of Merck & Co., Inc. by 29.5% in the 4th quarter. Brighton Jones LLC now owns 38,278 shares of the company's stock valued at $3,808,000 after acquiring an additional 8,710 shares during the period. Sivia Capital Partners LLC raised its holdings in Merck & Co., Inc. by 52.2% in the second quarter. Sivia Capital Partners LLC now owns 11,494 shares of the company's stock worth $910,000 after purchasing an additional 3,941 shares during the period. Diversify Advisory Services LLC boosted its position in shares of Merck & Co., Inc. by 94.1% during the second quarter. Diversify Advisory Services LLC now owns 32,256 shares of the company's stock worth $2,590,000 after purchasing an additional 15,636 shares in the last quarter. Diversify Wealth Management LLC grew its holdings in shares of Merck & Co., Inc. by 22.2% in the 2nd quarter. Diversify Wealth Management LLC now owns 38,031 shares of the company's stock valued at $3,054,000 after buying an additional 6,897 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Merck & Co., Inc. by 111.7% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 681,128 shares of the company's stock valued at $53,918,000 after buying an additional 359,356 shares in the last quarter. Institutional investors own 76.07% of the company's stock.

Merck & Co., Inc. Price Performance

The firm has a market cap of $317.15 billion, a price-to-earnings ratio of 36.17, a P/E/G ratio of 2.90 and a beta of 0.21. The company has a current ratio of 1.30, a quick ratio of 1.06 and a debt-to-equity ratio of 1.02. The company has a 50 day moving average of $116.54 and a 200 day moving average of $114.88.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported ($1.28) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($1.47) by $0.19. The firm had revenue of $16.29 billion during the quarter, compared to analysts' expectations of $15.85 billion. Merck & Co., Inc. had a return on equity of 27.55% and a net margin of 13.59%.The company's revenue was up 4.9% on a year-over-year basis. During the same period in the previous year, the firm earned $2.22 earnings per share. Merck & Co., Inc. has set its FY 2026 guidance at 5.040-5.160 EPS. Equities research analysts predict that Merck & Co., Inc. will post 5.18 EPS for the current fiscal year.

Merck & Co., Inc. Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 8th. Shareholders of record on Monday, June 15th will be paid a $0.85 dividend. The ex-dividend date of this dividend is Monday, June 15th. This represents a $3.40 annualized dividend and a dividend yield of 2.6%. Merck & Co., Inc.'s dividend payout ratio (DPR) is currently 95.77%.

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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