Merck & Co., Inc. (NYSE:MRK) Trading Up 0.9% - Should You Buy?

Shares of Merck & Co., Inc. (NYSE:MRK - Get Free Report) were up 0.9% during mid-day trading on Friday . The stock traded as high as $76.03 and last traded at $75.49. Approximately 4,050,658 shares changed hands during trading, a decline of 75% from the average daily volume of 16,258,919 shares. The stock had previously closed at $74.80.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. Guggenheim reaffirmed a "buy" rating and issued a $115.00 price target on shares of Merck & Co., Inc. in a research note on Thursday, April 17th. BMO Capital Markets cut their price target on shares of Merck & Co., Inc. from $105.00 to $96.00 and set a "market perform" rating for the company in a report on Wednesday, February 5th. Cantor Fitzgerald started coverage on shares of Merck & Co., Inc. in a report on Tuesday, April 22nd. They set a "neutral" rating and a $85.00 price target for the company. StockNews.com downgraded shares of Merck & Co., Inc. from a "strong-buy" rating to a "buy" rating in a report on Friday, April 25th. Finally, Citigroup restated a "neutral" rating and set a $84.00 price target (down previously from $115.00) on shares of Merck & Co., Inc. in a report on Wednesday. Thirteen research analysts have rated the stock with a hold rating, seven have given a buy rating and three have assigned a strong buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $109.19.

Merck & Co., Inc. Price Performance

The company has a market cap of $191.11 billion, a PE ratio of 11.30, a PEG ratio of 0.77 and a beta of 0.43. The company's 50-day simple moving average is $83.83 and its 200 day simple moving average is $92.51. The company has a debt-to-equity ratio of 0.79, a quick ratio of 1.15 and a current ratio of 1.36.

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

Merck & Co., Inc. announced that its Board of Directors has approved a stock buyback program on Tuesday, January 28th that authorizes the company to buyback $10.00 billion in outstanding shares. This buyback authorization authorizes the company to purchase up to 4.1% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In other 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 sale, the senior vice president now directly owns 7,778 shares of the company's stock, valued at approximately $643,707.28. This represents a 35.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.13% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Midwest Capital Advisors LLC acquired a new stake 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 shares of Merck & Co., Inc. in the first quarter valued at approximately $27,000. Financial Life Planners acquired a new stake in shares of Merck & Co., Inc. in the fourth quarter valued at approximately $28,000. Noble Wealth Management PBC acquired a new stake in shares of Merck & Co., Inc. in the fourth quarter valued at approximately $28,000. Finally, Halbert Hargrove Global Advisors LLC acquired a new stake in shares of Merck & Co., Inc. in the fourth quarter valued at approximately $28,000. 76.07% of the stock is currently 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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