Organon & Co. (NYSE:OGN) Hits New 52-Week Low - Here's Why

Key Points

• New 52-week low: Organon shares fell to as low as $5.76 (last $6.1050) on heavy volume, signaling continued downward pressure on the stock.
• Analyst sentiment weak: The consensus rating is "Reduce" (one Strong Buy, one Hold, five Sells) with a $8.50 average target; recent notes include Barclays' underweight/$8 target and Zacks' downgrade to "strong sell."
• Earnings miss and soft sales: Q4 EPS of $0.63 missed estimates by $0.10 and revenue of $1.51B was down 5.3% year-over-year, though the company pays a small quarterly dividend (annualized $0.08, ~1.3% yield).

Organon & Co. (NYSE:OGN - Get Free Report) reached a new 52-week low on Tuesday . The stock traded as low as $5.76 and last traded at $6.1050, with a volume of 5920057 shares trading hands. The stock had previously closed at $6.03.

Wall Street Analyst Weigh In

Several analysts recently commented on the company. Barclays lifted their price objective on Organon & Co. from $7.50 to $8.00 and gave the stock an "underweight" rating in a report on Tuesday, February 24th. Zacks Research downgraded Organon & Co. from a "hold" rating to a "strong sell" rating in a report on Thursday, January 29th. Finally, Wall Street Zen cut Organon & Co. from a "buy" rating to a "hold" rating in a research report on Saturday, January 31st. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Reduce" and a consensus target price of $8.50.

Organon & Co. Trading Up 1.2%

The firm has a market capitalization of $1.59 billion, a PE ratio of 8.60, a PEG ratio of 0.56 and a beta of 0.61. The company has a quick ratio of 1.23, a current ratio of 1.82 and a debt-to-equity ratio of 11.47. The stock's fifty day simple moving average is $7.68 and its 200 day simple moving average is $8.14.

Organon & Co. (NYSE:OGN - Get Free Report) last issued its quarterly earnings results on Thursday, February 12th. The company reported $0.63 earnings per share for the quarter, missing the consensus estimate of $0.73 by ($0.10). Organon & Co. had a return on equity of 122.01% and a net margin of 3.01%.The business had revenue of $1.51 billion for the quarter, compared to analysts' expectations of $1.52 billion. During the same quarter in the prior year, the business earned $0.90 EPS. The company's revenue was down 5.3% compared to the same quarter last year. On average, sell-side analysts predict that Organon & Co. will post 3.68 earnings per share for the current year.

Organon & Co. Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, March 12th. Investors of record on Monday, February 23rd were given a dividend of $0.02 per share. The ex-dividend date was Monday, February 23rd. This represents a $0.08 annualized dividend and a yield of 1.3%. Organon & Co.'s payout ratio is 11.27%.

Hedge Funds Weigh In On Organon & Co.

Several large investors have recently added to or reduced their stakes in the company. Sector Gamma AS purchased a new stake in Organon & Co. during the third quarter valued at approximately $5,807,000. Gotham Asset Management LLC increased its stake in Organon & Co. by 37.2% in the third quarter. Gotham Asset Management LLC now owns 3,713,204 shares of the company's stock worth $39,657,000 after purchasing an additional 1,007,691 shares during the period. Vanguard Group Inc. increased its stake in Organon & Co. by 11.3% in the third quarter. Vanguard Group Inc. now owns 35,928,403 shares of the company's stock worth $383,715,000 after purchasing an additional 3,650,860 shares during the period. Coldstream Capital Management Inc. lifted its position in shares of Organon & Co. by 61.6% during the second quarter. Coldstream Capital Management Inc. now owns 22,686 shares of the company's stock worth $220,000 after purchasing an additional 8,644 shares during the last quarter. Finally, American Century Companies Inc. boosted its stake in shares of Organon & Co. by 1,205.1% during the second quarter. American Century Companies Inc. now owns 522,013 shares of the company's stock valued at $5,053,000 after purchasing an additional 482,016 shares during the period. Hedge funds and other institutional investors 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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