Organon & Co. (NYSE:OGN) Reaches New 1-Year High - Time to Buy?

Key Points

• Organon shares hit a new 52-week high of $13.39, but the analyst consensus remains a Reduce rating with a $11.40 target despite several recent upgrades.
• The company missed Q1 estimates, reporting $0.71 EPS versus $0.83 expected and $1.46B revenue versus $1.49B expected, with revenue down 3.5% year-over-year.
• Organon declared a $0.02 quarterly dividend (0.6% yield) and has a $3.52B market cap, while carrying substantial leverage with a debt-to-equity ratio of 9.47 and over 77% institutional ownership.

Organon & Co. (NYSE:OGN - Get Free Report)'s share price hit a new 52-week high on Wednesday . The company traded as high as $13.39 and last traded at $13.3750, with a volume of 1771894 shares. The stock had previously closed at $13.35.

Analyst Ratings Changes

A number of brokerages have recently commented on OGN. Piper Sandler raised Organon & Co. from an "underweight" rating to a "neutral" rating and lifted their price objective for the company from $5.00 to $14.00 in a research report on Tuesday, April 28th. Zacks Research upgraded Organon & Co. from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 14th. Barclays raised their price target on Organon & Co. from $7.50 to $8.00 and gave the stock an "underweight" rating in a research note on Tuesday, February 24th. BNP Paribas Exane restated a "neutral" rating and issued a $14.00 price target (up from $12.00) on shares of Organon & Co. in a report on Wednesday, April 29th. Finally, Wall Street Zen downgraded shares of Organon & Co. from a "buy" rating to a "hold" rating in a research note on Saturday, January 31st. Four research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $11.40.

Organon & Co. Stock Performance

The stock's fifty day simple moving average is $7.79 and its two-hundred day simple moving average is $7.76. The company has a market cap of $3.52 billion, a price-to-earnings ratio of 14.41, a price-to-earnings-growth ratio of 1.23 and a beta of 1.57. The company has a debt-to-equity ratio of 9.47, a quick ratio of 1.23 and a current ratio of 1.97.

Organon & Co. (NYSE:OGN - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The company reported $0.71 EPS 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 analyst estimates of $1.49 billion. Organon & Co. had a return on equity of 99.95% and a net margin of 3.99%.The company's quarterly revenue was down 3.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.02 earnings per share. Equities research analysts anticipate that Organon & Co. will post 3.23 EPS for the current year.

Organon & Co. Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders 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 yield of 0.6%. Organon & Co.'s dividend payout ratio is currently 8.60%.

Hedge Funds Weigh In On Organon & Co.

A number of large investors have recently modified their holdings of OGN. Amalgamated Bank grew its holdings in shares of Organon & Co. by 1.9% during the 3rd quarter. Amalgamated Bank now owns 79,805 shares of the company's stock worth $852,000 after purchasing an additional 1,514 shares during the period. State of Alaska Department of Revenue increased its position in Organon & Co. by 0.6% during the 4th quarter. State of Alaska Department of Revenue now owns 278,379 shares of the company's stock worth $1,995,000 after purchasing an additional 1,570 shares in the last quarter. Integrated Wealth Concepts LLC raised its holdings in Organon & Co. by 2.8% in the third quarter. Integrated Wealth Concepts LLC now owns 58,648 shares of the company's stock valued at $626,000 after buying an additional 1,594 shares during the period. Arizona State Retirement System raised its holdings in Organon & Co. by 2.2% in the third quarter. Arizona State Retirement System now owns 76,924 shares of the company's stock valued at $822,000 after buying an additional 1,644 shares during the period. Finally, Rothschild Investment LLC lifted its position in Organon & Co. by 73.1% during the third quarter. Rothschild Investment LLC now owns 3,899 shares of the company's stock valued at $42,000 after buying an additional 1,646 shares in the last quarter. 77.43% of the stock is currently owned by hedge funds and other institutional investors.

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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