Merck & Co., Inc. (NYSE:MRK) Stock Price Down 2.5% - Here's Why

Merck & Co., Inc. (NYSE:MRK - Get Free Report)'s stock price fell 2.5% on Wednesday . The stock traded as low as $74.74 and last traded at $74.75. 5,096,808 shares traded hands during mid-day trading, a decline of 58% from the average session volume of 12,264,641 shares. The stock had previously closed at $76.63.

Analysts Set New Price Targets

MRK has been the topic of several recent analyst reports. TD Cowen cut Merck & Co., Inc. from a "buy" rating to a "hold" rating and dropped their target price for the stock from $121.00 to $100.00 in a report on Monday, February 10th. Guggenheim reaffirmed a "buy" rating and issued a $115.00 price target on shares of Merck & Co., Inc. in a research report on Thursday, April 17th. BMO Capital Markets lowered their price objective on Merck & Co., Inc. from $105.00 to $96.00 and set a "market perform" rating on the stock in a research note on Wednesday, February 5th. TD Securities cut shares of Merck & Co., Inc. from a "buy" rating to a "hold" rating and decreased their price target for the company from $121.00 to $100.00 in a research note on Monday, February 10th. Finally, Cantor Fitzgerald began coverage on shares of Merck & Co., Inc. in a research note on Tuesday, April 22nd. They set a "neutral" rating and a $85.00 price objective on the stock. Thirteen investment analysts have rated the stock with a hold rating, seven have issued a buy rating and three have given a strong buy rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $109.19.

Merck & Co., Inc. Trading Down 3.5%

The stock has a 50 day moving average price of $84.66 and a 200 day moving average price of $92.85. The company has a market cap of $185.74 billion, a PE ratio of 10.99, a PEG ratio of 0.77 and a beta of 0.43. The company has a current ratio of 1.36, a quick ratio of 1.15 and a debt-to-equity ratio of 0.79.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last posted its quarterly earnings results on Thursday, April 24th. The company reported $2.22 EPS for the quarter, beating analysts' consensus estimates 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 business had revenue of $15.53 billion for the quarter, compared to analysts' expectations of $15.59 billion. During the same period last year, the firm earned $2.07 earnings per share. The business's quarterly revenue was down 1.6% on a year-over-year basis. Sell-side analysts predict that Merck & Co., Inc. will post 9.01 EPS for the current fiscal year.

Merck & Co., Inc. announced that its Board of Directors has approved a stock repurchase plan on Tuesday, January 28th that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the company to purchase up to 4.1% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its stock is undervalued.

Insider Activity at Merck & Co., Inc.

In other Merck & Co., Inc. news, SVP Dalton E. Smart III sold 4,262 shares of the company's stock in a transaction dated Friday, April 25th. The shares were sold at an average price of $82.76, for a total value of $352,723.12. Following the completion of the transaction, the senior vice president now owns 7,778 shares in the company, valued at approximately $643,707.28. This represents a 35.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 0.13% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Midwest Capital Advisors LLC acquired a new position in shares of Merck & Co., Inc. in the fourth quarter valued at approximately $26,000. Barnes Dennig Private Wealth Management LLC acquired a new stake in Merck & Co., Inc. in the first quarter valued at about $27,000. Financial Life Planners acquired a new stake in shares of Merck & Co., Inc. in the fourth quarter valued at about $28,000. Noble Wealth Management PBC purchased a new stake in Merck & Co., Inc. during the fourth quarter worth $28,000. Finally, Halbert Hargrove Global Advisors LLC purchased a new stake in Merck & Co., Inc. in the 4th quarter valued at approximately $28,000. 76.07% of the stock is owned by institutional investors and hedge funds.

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.

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