Organon & Co. (NYSE:OGN) Issues Earnings Results, Misses Expectations By $0.02 EPS

Key Points

• Organon reported quarterly EPS of $0.85, falling $0.02 short of analysts’ $0.87 consensus estimate. Revenue was $1.56 billion, also slightly below the $1.57 billion expectation.
• OGN shares traded at $13.55, near their 52-week high of $13.60, while the company posted a 3.99% net margin and 99.95% return on equity.
• Analyst sentiment remains cautious: five analysts rate the stock Hold and two rate it Sell, producing a consensus “Reduce” rating and an average price target of $11.40. An insider nevertheless purchased 26,448 shares, while institutional investors own 77.43% of the company.

Organon & Co. (NYSE:OGN - Get Free Report) posted its quarterly earnings results on Friday. The company reported $0.85 earnings per share for the quarter, missing analysts' consensus estimates of $0.87 by ($0.02), FiscalAI reports. Organon & Co. had a net margin of 3.99% and a return on equity of 99.95%. The business had revenue of $1.56 billion during the quarter, compared to the consensus estimate of $1.57 billion.

Organon & Co. Stock Performance

NYSE:OGN traded up $0.01 during mid-day trading on Friday, hitting $13.55. 2,689,351 shares of the stock were exchanged, compared to its average volume of 6,106,729. The firm's 50-day simple moving average is $13.47 and its 200 day simple moving average is $10.38. The stock has a market capitalization of $3.56 billion, a price-to-earnings ratio of 14.58, a price-to-earnings-growth ratio of 1.25 and a beta of 1.54. Organon & Co. has a fifty-two week low of $5.69 and a fifty-two week high of $13.60. The company has a debt-to-equity ratio of 9.47, a quick ratio of 1.42 and a current ratio of 1.97.

Analyst Upgrades and Downgrades

OGN has been the topic of several research reports. BNP Paribas Exane reiterated a "neutral" rating and issued a $14.00 price objective (up from $12.00) on shares of Organon & Co. in a report on Wednesday, April 29th. Weiss Ratings upgraded shares of Organon & Co. from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, July 13th. Piper Sandler raised shares of Organon & Co. from an "underweight" rating to a "neutral" rating and lifted their target price for the stock from $5.00 to $14.00 in a report on Tuesday, April 28th. Finally, Zacks Research upgraded shares of Organon & Co. from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 14th. Five equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Reduce" and an average price target of $11.40.

Insider Buying and Selling

In other news, SVP Lynette Holzbaur acquired 26,448 shares of the stock in a transaction on Wednesday, May 6th. The shares were purchased at an average price of $13.35 per share, for a total transaction of $353,080.80. Following the transaction, the senior vice president directly owned 52,851 shares of the company's stock, valued at approximately $705,560.85. This 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 link. 1.62% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Organon & Co.

A number of institutional investors have recently modified their holdings of the business. Kestra Advisory Services LLC bought a new position in Organon & Co. during the fourth quarter worth about $47,000. Empowered Funds LLC bought a new stake in Organon & Co. in the 4th quarter valued at about $74,000. Oxford Asset Management LLP bought a new stake in Organon & Co. in the 4th quarter valued at about $74,000. NorthRock Partners LLC acquired a new position in shares of Organon & Co. during the 3rd quarter worth approximately $115,000. Finally, Quadrant Capital Group LLC acquired a new position in shares of Organon & Co. during the 3rd quarter worth approximately $116,000. Institutional investors own 77.43% of the company's stock.

Organon & Co. Company Profile

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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