Merck & Co., Inc. (NYSE:MRK) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Merck & Co. has a consensus analyst rating of “Moderate Buy” from 19 firms, with 11 buy ratings, 1 strong buy, and 7 hold ratings. The average 1-year price target is about $128.18.
• The company reported quarterly results that beat analyst expectations, posting EPS of -$1.28 versus an expected -$1.47 and revenue of $16.29 billion versus $15.85 billion expected. Revenue rose 4.9% year over year, and Merck reaffirmed FY 2026 EPS guidance of 5.04 to 5.16.
• Merck also announced a quarterly dividend of $0.85 per share, payable July 8, which annualizes to $3.40 per share and a yield of about 2.9%. The article also highlights positive pipeline news, including FDA Breakthrough Therapy Designation for calderasib with Keytruda and encouraging long-term melanoma data.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the nineteen ratings firms that are presently covering the firm, Marketbeat Ratings reports. Seven analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $128.1765.

A number of analysts recently issued reports on the company. Wells Fargo & Company lowered their target price on Merck & Co., Inc. from $150.00 to $145.00 and set an "overweight" rating for the company in a research note on Friday, May 1st. UBS Group upped their price target on Merck & Co., Inc. from $130.00 to $145.00 and gave the stock a "buy" rating in a research report on Monday, April 13th. Wall Street Zen downgraded Merck & Co., Inc. from a "buy" rating to a "hold" rating in a research report on Saturday, May 16th. Zacks Research raised Merck & Co., Inc. from a "strong sell" rating to a "hold" rating in a research report on Tuesday, March 17th. Finally, Cantor Fitzgerald upped their price target on Merck & Co., Inc. from $116.00 to $120.00 and gave the stock a "neutral" rating in a research report on Wednesday, February 4th.

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

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Optiver Holding B.V. acquired a new stake in shares of Merck & Co., Inc. in the first quarter valued at about $519,000. First Nebraska Trust Co bought a new stake in Merck & Co., Inc. during the first quarter worth about $12,535,000. Financial Solutions Advisory Group Inc. bought a new stake in Merck & Co., Inc. during the first quarter worth about $610,000. Allen Capital Group LLC raised its holdings in Merck & Co., Inc. by 6.2% during the first quarter. Allen Capital Group LLC now owns 10,615 shares of the company's stock worth $1,277,000 after acquiring an additional 621 shares in the last quarter. Finally, Axiom Investment Management LLC bought a new stake in Merck & Co., Inc. during the first quarter worth about $868,000. 76.07% of the stock is owned by institutional investors.

Merck & Co., Inc. Price Performance

NYSE MRK opened at $115.89 on Wednesday. The business has a 50 day simple moving average of $116.42 and a 200 day simple moving average of $111.81. Merck & Co., Inc. has a 52-week low of $75.43 and a 52-week high of $125.14. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.06 and a current ratio of 1.30. The stock has a market cap of $286.23 billion, a price-to-earnings ratio of 32.65, a PEG ratio of 2.59 and a beta of 0.21.

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, topping analysts' consensus estimates of ($1.47) by $0.19. Merck & Co., Inc. had a return on equity of 27.55% and a net margin of 13.59%.The business had revenue of $16.29 billion during the quarter, compared to analysts' expectations of $15.85 billion. During the same period in the prior year, the business earned $2.22 EPS. Merck & Co., Inc.'s revenue for the quarter was up 4.9% compared to the same quarter last year. Merck & Co., Inc. has set its FY 2026 guidance at 5.040-5.160 EPS. Analysts anticipate that Merck & Co., Inc. will post 5.16 earnings per share for the current fiscal year.

Merck & Co., Inc. Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 8th. Shareholders of record on Monday, June 15th will be given a dividend of $0.85 per share. The ex-dividend date of this dividend is Monday, June 15th. This represents a $3.40 annualized dividend and a yield of 2.9%. Merck & Co., Inc.'s payout ratio is 95.77%.

Trending Headlines about Merck & Co., Inc.

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

• Positive Sentiment: Merck said the FDA granted Breakthrough Therapy Designation for calderasib in combination with Keytruda for certain newly diagnosed metastatic KRAS G12C-mutant non-small cell lung cancer patients, which may speed development and improve the drug’s commercial outlook. Article Title
• Positive Sentiment: Moderna and Merck presented five-year data for their melanoma combination therapy, showing a 49% reduction in recurrence or death risk versus Keytruda alone, reinforcing confidence in Merck’s oncology pipeline and Keytruda’s franchise. Article Title
• Positive Sentiment: Reports highlighted possible new EU approval momentum for Keytruda, which would expand the drug’s reach outside the U.S. and support future revenue growth. Article Title
• Positive Sentiment: Merck announced a quarterly dividend, reinforcing its shareholder-return profile and signaling financial stability. Article Title
• Positive Sentiment: Merck is also strengthening its capital structure with a notes offering, which may improve liquidity and financial flexibility. Article Title
• Neutral Sentiment: Merck will participate in the Goldman Sachs Global Healthcare Conference, a routine investor event that could provide updates but does not by itself change fundamentals. Article Title
• Neutral Sentiment: Commentary from Jim Cramer noting that Merck’s cancer dominance has been challenged by J&J is more of a competitive observation than a direct catalyst, but it underscores pressure in oncology. Article Title
• Neutral Sentiment: Reuters reported Merck is discussing whether its COVID antiviral molnupiravir could be used in the Ebola response; this is potentially meaningful, but still exploratory. Article Title

About Merck & Co., Inc.

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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