Organon & Co. (NYSE:OGN) Receives Average Rating of "Reduce" from Brokerages

Key Points

• Wall Street sentiment is cautious: Organon & Co. has a consensus analyst rating of “Reduce” from seven covering firms, with an average 12-month price target of $11.40.
• Recent earnings missed expectations: The company reported $0.71 EPS versus the expected $0.83, and revenue of $1.46 billion came in slightly below forecasts, while quarterly sales fell 3.5% year over year.
• Insiders and institutions are active: SVP Lynette Holzbaur bought 26,448 shares at $13.35 each, and several large institutional investors increased their stakes, with institutions and hedge funds owning 77.43% of the stock.

Organon & Co. (NYSE:OGN - Get Free Report) has earned a consensus recommendation of "Reduce" from the seven research firms that are currently covering the company, MarketBeat Ratings reports. Three research analysts have rated the stock with a sell recommendation and four have assigned a hold recommendation to the company. The average 12 month price target among analysts that have issued a report on the stock in the last year is $11.40.

Several research firms recently commented on OGN. Piper Sandler raised Organon & Co. from an "underweight" rating to a "neutral" rating and increased their price objective for the company from $5.00 to $14.00 in a research note on Tuesday, April 28th. Wall Street Zen downgraded Organon & Co. from a "buy" rating to a "hold" rating in a research note on Saturday, January 31st. BNP Paribas Exane reissued a "neutral" rating and issued a $14.00 price objective (up from $12.00) on shares of Organon & Co. in a research note on Wednesday, April 29th. Zacks Research raised Organon & Co. from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 14th. Finally, Barclays increased their price objective on Organon & Co. from $7.50 to $8.00 and gave the company an "underweight" rating in a research note on Tuesday, February 24th.

Insider Buying and Selling

In other news, SVP Lynette Holzbaur acquired 26,448 shares of Organon & Co. stock in a transaction that occurred on Wednesday, May 6th. The stock was purchased at an average cost of $13.35 per share, with a total value of $353,080.80. Following the purchase, the senior vice president owned 52,851 shares in the company, valued at $705,560.85. This trade represents a 100.17% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 1.62% of the company's stock.

Institutional Trading of Organon & Co.

A number of hedge funds and other institutional investors have recently modified their holdings of OGN. Royal Bank of Canada increased its stake in shares of Organon & Co. by 53.4% in the 1st quarter. Royal Bank of Canada now owns 360,862 shares of the company's stock worth $5,374,000 after acquiring an additional 125,648 shares during the last quarter. Goldman Sachs Group Inc. increased its stake in shares of Organon & Co. by 126.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,435,198 shares of the company's stock worth $21,370,000 after acquiring an additional 801,307 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Organon & Co. by 2.6% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,042,991 shares of the company's stock worth $15,530,000 after acquiring an additional 26,640 shares during the last quarter. Focus Partners Wealth increased its stake in shares of Organon & Co. by 33.2% in the 1st quarter. Focus Partners Wealth now owns 55,875 shares of the company's stock worth $832,000 after acquiring an additional 13,925 shares during the last quarter. Finally, XTX Topco Ltd acquired a new stake in shares of Organon & Co. in the 2nd quarter worth $107,000. 77.43% of the stock is owned by institutional investors and hedge funds.

Organon & Co. Trading Up 0.3%

Shares of NYSE:OGN opened at $13.40 on Friday. Organon & Co. has a 1 year low of $5.69 and a 1 year high of $13.44. The firm has a market capitalization of $3.52 billion, a price-to-earnings ratio of 14.40, a price-to-earnings-growth ratio of 1.24 and a beta of 1.57. The company has a debt-to-equity ratio of 9.47, a current ratio of 1.97 and a quick ratio of 1.42. The business's 50 day moving average price is $8.74 and its 200-day moving average price is $8.01.

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

Organon & Co. Announces Dividend

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

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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