Merck KGaA (OTCMKTS:MKKGY) Sees Significant Decline in Short Interest

Key Points

• Short interest in Merck KGaA fell sharply in June, dropping 66.7% to 97,736 shares as of June 30 from 293,910 shares two weeks earlier. The stock’s days-to-cover ratio is now just 0.5 days.
• Analysts remain cautious on the stock, with Jefferies, HSBC, and Sanford C. Bernstein all assigning Hold ratings. MarketBeat says the overall consensus rating is also Hold.
• Merck KGaA recently posted better-than-expected quarterly results, reporting EPS of $0.59 versus the $0.45 estimate and revenue of $6.03 billion versus $5.93 billion expected. The company’s shares opened at $32.00, near the upper end of their 52-week range.

Merck KGaA (OTCMKTS:MKKGY - Get Free Report) was the recipient of a large decrease in short interest in June. As of June 30th, there was short interest totaling 97,736 shares, a decrease of 66.7% from the June 15th total of 293,910 shares. Based on an average daily trading volume, of 181,804 shares, the days-to-cover ratio is currently 0.5 days. Approximately 0.0% of the shares of the company are sold short.

Wall Street Analyst Weigh In

A number of analysts have issued reports on MKKGY shares. Jefferies Financial Group began coverage on shares of Merck KGaA in a report on Tuesday, May 26th. They issued a "hold" rating for the company. HSBC upgraded Merck KGaA to a "hold" rating in a research report on Monday, July 6th. Finally, Sanford C. Bernstein raised Merck KGaA to a "hold" rating in a report on Thursday, March 19th. Six analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock has a consensus rating of "Hold".

Merck KGaA Stock Performance

Shares of Merck KGaA stock opened at $32.00 on Monday. The company's 50 day moving average price is $30.40 and its two-hundred day moving average price is $28.79. The firm has a market capitalization of $20.68 billion, a P/E ratio of 14.22, a P/E/G ratio of 2.81 and a beta of 1.00. Merck KGaA has a fifty-two week low of $23.73 and a fifty-two week high of $34.19. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.51 and a quick ratio of 1.00.

Merck KGaA (OTCMKTS:MKKGY - Get Free Report) last announced its quarterly earnings results on Wednesday, May 13th. The company reported $0.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.14. Merck KGaA had a net margin of 12.07% and a return on equity of 8.79%. The company had revenue of $6.03 billion during the quarter, compared to the consensus estimate of $5.93 billion. On average, equities analysts forecast that Merck KGaA will post 1.87 earnings per share for the current fiscal year.

Merck KGaA Company Profile

Merck KGaA, Darmstadt, Germany, commonly referred to as Merck Group, is a multinational science and technology company with origins dating back to 1668. The company develops and manufactures products and technologies across healthcare, life science and electronics applications. It is distinct from the U.S. pharmaceutical company Merck & Co; Merck KGaA is a European group headquartered in Darmstadt and is publicly listed in Germany with an OTC American depositary receipt available under the symbol MKKGY.

Merck's Healthcare business develops prescription medicines and related services focused on areas such as oncology, immunology, neurology (including therapies for multiple sclerosis) and fertility.

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