Merck & Co., Inc. (NYSE:MRK) Shares Down 1% - Here's Why

Merck & Co., Inc. (NYSE:MRK - Get Free Report)'s share price dropped 1% during mid-day trading on Friday . The stock traded as low as $78.06 and last traded at $79.08. Approximately 3,587,412 shares changed hands during mid-day trading, a decline of 70% from the average daily volume of 11,799,584 shares. The stock had previously closed at $79.84.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. Bank of America dropped their target price on Merck & Co., Inc. from $118.00 to $112.00 and set a "buy" rating on the stock in a report on Wednesday, February 5th. Cantor Fitzgerald assumed coverage on Merck & Co., Inc. in a research report on Tuesday, April 22nd. They set a "neutral" rating and a $85.00 price target on the stock. UBS Group cut their price objective on Merck & Co., Inc. from $125.00 to $120.00 and set a "buy" rating for the company in a report on Wednesday, January 8th. StockNews.com cut Merck & Co., Inc. from a "strong-buy" rating to a "buy" rating in a research note on Friday. Finally, Guggenheim reiterated a "buy" rating and issued a $115.00 price target on shares of Merck & Co., Inc. in a research report on Thursday, April 17th. Twelve investment analysts have rated the stock with a hold rating, eight have assigned a buy rating and three have given a strong buy rating to the company's stock. Based on data from MarketBeat.com, Merck & Co., Inc. currently has an average rating of "Moderate Buy" and a consensus target price of $111.13.

Merck & Co., Inc. Price Performance

The stock has a fifty day moving average price of $87.00 and a 200-day moving average price of $94.84. The company has a market cap of $213.59 billion, a PE ratio of 12.59, a price-to-earnings-growth ratio of 0.77 and a beta of 0.40. The company has a debt-to-equity ratio of 0.79, a current ratio of 1.36 and a quick ratio of 1.15.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last posted its quarterly earnings results on Thursday, April 24th. The company reported $2.22 earnings per share for the quarter, beating the consensus estimate of $2.16 by $0.06. Merck & Co., Inc. had a return on equity of 45.35% and a net margin of 26.67%. The firm had revenue of $15.53 billion for the quarter, compared to analyst estimates of $15.59 billion. During the same period in the previous year, the firm earned $2.07 earnings per share. Merck & Co., Inc.'s quarterly revenue was down 1.6% on a year-over-year basis. On average, equities analysts expect that Merck & Co., Inc. will post 9.01 earnings per share for the current year.

Merck & Co., Inc. announced that its board has initiated a share repurchase program on Tuesday, January 28th that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the company to repurchase up to 4.1% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In related news, Director Inge G. Thulin bought 2,833 shares of the firm's stock in a transaction on Thursday, February 6th. The stock was bought at an average price of $88.25 per share, with a total value of $250,012.25. Following the purchase, the director now directly owns 2,933 shares of the company's stock, valued at approximately $258,837.25. This represents a 2,833.00 % increase in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Cristal N. Downing sold 2,361 shares of the business's stock in a transaction on Thursday, February 6th. The shares were sold at an average price of $88.76, for a total transaction of $209,562.36. Following the transaction, the insider now owns 7,085 shares in the company, valued at approximately $628,864.60. This represents a 24.99 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.09% of the stock is currently owned by corporate insiders.

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

Hedge funds and other institutional investors have recently made changes to their positions in the company. Norges Bank acquired a new stake in Merck & Co., Inc. in the fourth quarter valued at approximately $3,479,799,000. Bank of New York Mellon Corp lifted its stake in shares of Merck & Co., Inc. by 29.7% in the 4th quarter. Bank of New York Mellon Corp now owns 24,213,537 shares of the company's stock valued at $2,408,763,000 after purchasing an additional 5,550,824 shares during the last quarter. Wellington Management Group LLP boosted its holdings in Merck & Co., Inc. by 6.5% in the fourth quarter. Wellington Management Group LLP now owns 80,742,030 shares of the company's stock worth $8,032,217,000 after purchasing an additional 4,932,647 shares in the last quarter. Northern Trust Corp increased its position in Merck & Co., Inc. by 16.8% during the fourth quarter. Northern Trust Corp now owns 31,377,107 shares of the company's stock worth $3,121,395,000 after buying an additional 4,511,742 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its holdings in Merck & Co., Inc. by 63.1% during the fourth quarter. Dimensional Fund Advisors LP now owns 11,577,535 shares of the company's stock valued at $1,151,642,000 after buying an additional 4,480,007 shares in the last quarter. 76.07% of the stock is owned by hedge funds and other institutional investors.

About Merck & Co., Inc.

Merck & Co, Inc is a health care company, which engages in the provision of health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. It operates through the following segments: Pharmaceutical, Animal Health, and Other. The Pharmaceutical segment includes human health pharmaceutical and vaccine products.