Merck & Co., Inc. (NYSE:MRK) Trading Up 4.1% - Should You Buy?

Merck & Co., Inc. (NYSE:MRK - Get Free Report) shares rose 4.1% during trading on Monday . The company traded as high as $79.72 and last traded at $79.05. Approximately 7,318,788 shares were traded during trading, a decline of 40% from the average daily volume of 12,168,446 shares. The stock had previously closed at $75.97.

Analysts Set New Price Targets

MRK has been the topic of a number of recent research reports. Cantor Fitzgerald began coverage on Merck & Co., Inc. in a report on Tuesday, April 22nd. They issued a "neutral" rating and a $85.00 target price on the stock. BMO Capital Markets dropped their price objective on Merck & Co., Inc. from $105.00 to $96.00 and set a "market perform" rating on the stock in a report on Wednesday, February 5th. Bank of America dropped their price target on Merck & Co., Inc. from $118.00 to $112.00 and set a "buy" rating for the company in a research report on Wednesday, February 5th. Deutsche Bank Aktiengesellschaft cut Merck & Co., Inc. from a "buy" rating to a "hold" rating and cut their price objective for the stock from $128.00 to $105.00 in a report on Tuesday, February 18th. Finally, Citigroup reiterated a "neutral" rating and set a $84.00 price target (down 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 issued a buy rating and three have given a strong buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $109.19.

Merck & Co., Inc. Stock Performance

The business has a 50-day moving average of $84.66 and a two-hundred day moving average of $92.85. The company has a debt-to-equity ratio of 0.79, a current ratio of 1.36 and a quick ratio of 1.15. The company has a market cap of $187.35 billion, a P/E ratio of 11.09, a P/E/G ratio of 0.77 and a beta of 0.43.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last issued its quarterly earnings data on Thursday, April 24th. The company reported $2.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.16 by $0.06. The firm had revenue of $15.53 billion for the quarter, compared to the consensus estimate 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 quarterly revenue was down 1.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.07 EPS. On average, 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 has approved a share repurchase program on Tuesday, January 28th that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the company to reacquire up to 4.1% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's leadership believes its shares are undervalued.

Insider Activity at Merck & Co., Inc.

In related news, SVP Dalton E. Smart III sold 4,262 shares of the business's stock in a transaction on Friday, April 25th. The stock was sold at an average price of $82.76, for a total transaction of $352,723.12. Following the completion of the transaction, the senior vice president now directly owns 7,778 shares of the company's stock, valued at $643,707.28. The trade was a 35.40% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.13% of the stock is owned by corporate insiders.

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

A number of institutional investors and hedge funds have recently bought and sold shares of MRK. CGN Advisors LLC increased its position in Merck & Co., Inc. by 0.4% during the 4th quarter. CGN Advisors LLC now owns 26,969 shares of the company's stock worth $2,683,000 after purchasing an additional 102 shares during the period. Cypress Wealth Services LLC raised its position in shares of Merck & Co., Inc. by 3.1% in the 4th quarter. Cypress Wealth Services LLC now owns 3,639 shares of the company's stock worth $362,000 after buying an additional 111 shares during the period. TI Trust Inc. raised its stake in shares of Merck & Co., Inc. by 0.6% in the 4th quarter. TI Trust Inc. now owns 19,834 shares of the company's stock valued at $1,973,000 after acquiring an additional 111 shares during the period. Hengehold Capital Management LLC raised its holdings in Merck & Co., Inc. by 0.3% in the fourth quarter. Hengehold Capital Management LLC now owns 39,989 shares of the company's stock valued at $3,978,000 after acquiring an additional 112 shares in the last quarter. Finally, Peterson Wealth Services increased its stake in Merck & Co., Inc. by 0.5% during the fourth quarter. Peterson Wealth Services now owns 21,479 shares of the company's stock valued at $2,137,000 after purchasing an additional 113 shares during 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.