Organon & Co. (NYSE:OGN) Given Consensus Rating of "Reduce" by Brokerages

Key Points

• Analyst sentiment is cautious: Organon & Co. has a consensus rating of “Reduce” from seven covering analysts, with two sells and five holds. The average 1-year price target is $11.40, below the stock’s recent trading level.
• Recent results were mixed: The company reported Q1 earnings of $0.71 per share, missing estimates of $0.83, while revenue of $1.46 billion also came in slightly below expectations. Revenue declined 3.5% year over year.
• Stock and insider activity remain notable: Shares recently traded around $13.40, near the 52-week high of $13.48, despite the weak analyst outlook. An Organon SVP bought 26,448 shares in May, and institutional investors continue to own a large majority of the stock.

Organon & Co. (NYSE:OGN - Get Free Report) has received an average recommendation of "Reduce" from the seven research firms that are presently covering the company, Marketbeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation and five have issued a hold recommendation on the company. The average 1-year price objective among brokers that have covered the stock in the last year is $11.40.

A number of brokerages have recently weighed in on OGN. BNP Paribas Exane reissued a "neutral" rating and set a $14.00 price target (up from $12.00) on shares of Organon & Co. in a research report on Wednesday, April 29th. Weiss Ratings raised shares of Organon & Co. from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, May 15th. Piper Sandler raised shares of Organon & Co. from an "underweight" rating to a "neutral" rating and boosted their price objective for the company from $5.00 to $14.00 in a research report on Tuesday, April 28th. Zacks Research raised shares of Organon & Co. from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 14th. Finally, Barclays boosted their price objective on shares of Organon & Co. from $7.50 to $8.00 and gave the company an "underweight" rating in a research report on Tuesday, February 24th.

Organon & Co. Trading Up 0.0%

Shares of NYSE OGN opened at $13.40 on Wednesday. The company's fifty day moving average is $11.16 and its 200-day moving average is $8.77. The stock has a market cap of $3.52 billion, a price-to-earnings ratio of 14.40, a P/E/G ratio of 1.24 and a beta of 1.55. Organon & Co. has a twelve month low of $5.69 and a twelve month high of $13.48. The company has a quick ratio of 1.42, a current ratio of 1.97 and a debt-to-equity ratio of 9.47.

Organon & Co. (NYSE:OGN - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported $0.71 earnings per share for the quarter, missing analysts' consensus estimates of $0.83 by ($0.12). The firm had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.49 billion. Organon & Co. had a return on equity of 99.95% and a net margin of 3.99%.The company's revenue for the quarter was down 3.5% compared to the same quarter last year. During the same period in the prior year, the business earned $1.02 earnings per share. Equities research analysts predict that Organon & Co. will post 3.23 EPS for the current year.

Organon & Co. Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Monday, May 11th will be paid a dividend of $0.02 per share. The ex-dividend date is Monday, May 11th. This represents a $0.08 annualized dividend and a dividend yield of 0.6%. Organon & Co.'s payout ratio is currently 8.60%.

Insider Buying and Selling at Organon & Co.

In other news, SVP Lynette Holzbaur acquired 26,448 shares of the stock in a transaction dated Wednesday, May 6th. The shares were bought at an average cost of $13.35 per share, for a total transaction of $353,080.80. Following the purchase, the senior vice president directly owned 52,851 shares of the company's stock, valued at approximately $705,560.85. This trade represents a 100.17% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 1.62% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Cetera Investment Advisers lifted its holdings in shares of Organon & Co. by 1.7% during the 1st quarter. Cetera Investment Advisers now owns 48,073 shares of the company's stock worth $288,000 after acquiring an additional 788 shares during the period. State of Alaska Department of Revenue increased its position in Organon & Co. by 0.6% in the 4th quarter. State of Alaska Department of Revenue now owns 278,379 shares of the company's stock valued at $1,995,000 after acquiring an additional 1,570 shares during the period. Integrated Wealth Concepts LLC increased its position in shares of Organon & Co. by 2.8% during the third quarter. Integrated Wealth Concepts LLC now owns 58,648 shares of the company's stock worth $626,000 after buying an additional 1,594 shares during the period. Rothschild Investment LLC increased its position in shares of Organon & Co. by 73.1% during the third quarter. Rothschild Investment LLC now owns 3,899 shares of the company's stock worth $42,000 after buying an additional 1,646 shares during the period. Finally, Rafferty Asset Management LLC increased its position in shares of Organon & Co. by 8.5% during the second quarter. Rafferty Asset Management LLC now owns 23,578 shares of the company's stock worth $228,000 after buying an additional 1,847 shares during the period. Institutional investors and hedge funds own 77.43% of the company's stock.

About Organon & Co.

Organon & Co is a global healthcare company that was established as an independent, publicly traded entity following its spin-off from Merck & Co in June 2021. Headquartered in Jersey City, New Jersey, Organon focuses on delivering therapeutic solutions across women’s health, biosimilars, and established brands. The company’s creation reflected a strategic effort to concentrate on specialty pharmaceuticals and legacy products with proven patient impact.

In women’s health, Organon provides a broad portfolio of products addressing reproductive and gynecological conditions, including fertility treatments, contraception, and hormone replacement therapies.

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