Merck & Co., Inc. Target of Unusually High Options Trading (NYSE:MRK)

Key Points

• Merck & Co., Inc. experienced a significant increase in options trading activity, with 68,952 call options purchased, marking a 41% rise from the typical volume.
• During midday trading on Tuesday, Merck's stock fell by $3.32, closing at $80.74, which is within its 12-month range of $73.31 to $123.94.
• The company declared a quarterly dividend of $0.81, with an annualized yield of 4.01%, showcasing its commitment to returning capital to shareholders.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) was the target of some unusual options trading activity on Tuesday. Stock investors acquired 68,952 call options on the stock. Thisrepresentsanincreaseof41% compared to the average volume of 48,799 call options.

Analyst Ratings Changes

Several research analysts recently commented on the stock. Guggenheim restated a "buy" rating and set a $115.00 target price on shares of Merck & Co., Inc. in a report on Thursday, April 17th. Cantor Fitzgerald lowered shares of Merck & Co., Inc. from an "overweight" rating to a "cautious" rating in a research report on Tuesday, May 20th. Morgan Stanley reduced their price target on shares of Merck & Co., Inc. from $99.00 to $98.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 10th. 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, May 14th. Finally, Wall Street Zen lowered shares of Merck & Co., Inc. from a "strong-buy" rating to a "buy" rating in a research note on Friday, April 25th. One research analyst has rated the stock with a sell rating, twelve have issued a hold rating, seven have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $107.44.

Merck & Co., Inc. Trading Up 0.6%

MRK stock traded up $0.49 during midday trading on Friday, hitting $78.61. 3,210,944 shares of the company's stock were exchanged, compared to its average volume of 15,821,911. The business has a 50-day simple moving average of $80.37 and a two-hundred day simple moving average of $84.80. The company has a current ratio of 1.41, a quick ratio of 1.16 and a debt-to-equity ratio of 0.69. The stock has a market capitalization of $197.40 billion, a PE ratio of 12.08, a P/E/G ratio of 0.83 and a beta of 0.39. Merck & Co., Inc. has a 1-year low of $73.31 and a 1-year high of $120.30.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The company reported $2.13 earnings per share for the quarter, beating analysts' consensus estimates of $2.03 by $0.10. Merck & Co., Inc. had a return on equity of 41.63% and a net margin of 25.79%. The business had revenue of $15.81 billion during the quarter, compared to analysts' expectations of $15.92 billion. On average, sell-side analysts predict that Merck & Co., Inc. will post 9.01 EPS for the current fiscal year.

Merck & Co., Inc. Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 7th. Shareholders of record on Monday, September 15th will be issued a dividend of $0.81 per share. This represents a $3.24 dividend on an annualized basis and a yield of 4.1%. The ex-dividend date of this dividend is Monday, September 15th. Merck & Co., Inc.'s payout ratio is 49.92%.

Institutional Trading of Merck & Co., Inc.

Institutional investors and hedge funds have recently made changes to their positions in the company. Brighton Jones LLC increased its position in Merck & Co., Inc. by 29.5% during the fourth quarter. Brighton Jones LLC now owns 38,278 shares of the company's stock worth $3,808,000 after buying an additional 8,710 shares in the last quarter. American Assets Inc. purchased a new stake in shares of Merck & Co., Inc. in the fourth quarter valued at $398,000. Wellington Management Group LLP grew its position in shares of 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 valued at $8,032,217,000 after purchasing an additional 4,932,647 shares during the period. FSB Premier Wealth Management Inc. grew its position in Merck & Co., Inc. by 5.8% during the fourth quarter. FSB Premier Wealth Management Inc. now owns 2,283 shares of the company's stock valued at $227,000 after acquiring an additional 125 shares during the period. Finally, AIA Group Ltd grew its position in Merck & Co., Inc. by 58.0% during the fourth quarter. AIA Group Ltd now owns 545,935 shares of the company's stock valued at $54,310,000 after acquiring an additional 200,498 shares during the period. 76.07% of the stock is owned by hedge funds and other institutional investors.

Merck & Co., Inc. Company Profile

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.