Organon & Co. (NYSE:OGN) Posts Earnings Results, Beats Estimates By $0.06 EPS

Key Points

• Organon & Co. reported earnings of $1.00 per share, exceeding estimates by $0.06, with quarterly revenue reaching $1.59 billion.
• The company's stock price fell 12.8% to $8.43 following the earnings report, and analysts have recently adjusted price targets, resulting in a consensus target price of $18.00.
• Institutional ownership of Organon & Co. remains high at 77.43%, with significant investment increases from firms such as Goldman Sachs and Royal Bank of Canada.

Organon & Co. (NYSE:OGN - Get Free Report) issued its quarterly earnings results on Tuesday. The company reported $1.00 EPS for the quarter, beating analysts' consensus estimates of $0.94 by $0.06, Briefing.com reports. Organon & Co. had a net margin of 11.15% and a return on equity of 182.69%. The business had revenue of $1.59 billion for the quarter, compared to analysts' expectations of $1.55 billion. During the same period last year, the business earned $1.12 earnings per share. The business's quarterly revenue was down .8% on a year-over-year basis. Organon & Co. updated its FY 2025 guidance to EPS.

Organon & Co. Stock Up 3.9%

Organon & Co. stock traded up $0.34 during mid-day trading on Thursday, reaching $9.06. The company's stock had a trading volume of 2,722,394 shares, compared to its average volume of 4,503,667. The company has a debt-to-equity ratio of 16.49, a quick ratio of 1.15 and a current ratio of 1.67. The business's 50 day simple moving average is $9.77 and its 200 day simple moving average is $11.99. The company has a market capitalization of $2.35 billion, a price-to-earnings ratio of 3.36, a price-to-earnings-growth ratio of 0.87 and a beta of 0.60. Organon & Co. has a 12 month low of $8.01 and a 12 month high of $23.10.

Organon & Co. Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Friday, August 15th will be paid a dividend of $0.02 per share. This represents a $0.08 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Friday, August 15th. Organon & Co.'s dividend payout ratio is presently 2.78%.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on OGN shares. Morgan Stanley reduced their target price on Organon & Co. from $15.00 to $10.00 and set an "equal weight" rating on the stock in a research note on Monday, May 5th. Evercore ISI lowered Organon & Co. from an "outperform" rating to an "inline" rating in a research report on Friday, May 2nd. Piper Sandler cut their target price on shares of Organon & Co. from $24.00 to $18.00 and set an "overweight" rating for the company in a report on Thursday, May 15th. Finally, BNP Paribas raised shares of Organon & Co. to a "strong-buy" rating in a research note on Thursday, May 22nd. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $18.00.

Institutional Trading of Organon & Co.

Several institutional investors and hedge funds have recently modified their holdings of the business. Focus Partners Wealth raised its holdings 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 purchasing an additional 13,925 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Organon & Co. by 2.6% during 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 valued at $15,530,000 after purchasing an additional 26,640 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in Organon & Co. by 126.4% during the first quarter. Goldman Sachs Group Inc. now owns 1,435,198 shares of the company's stock valued at $21,370,000 after buying an additional 801,307 shares during the period. Finally, Royal Bank of Canada boosted its position in Organon & Co. by 53.4% during the 1st quarter. Royal Bank of Canada now owns 360,862 shares of the company's stock valued at $5,374,000 after buying an additional 125,648 shares during the period. 77.43% of the stock is currently owned by institutional investors.

Organon & Co. Company Profile

Organon & Co is a science based global pharmaceutical company, which develops and delivers innovative health solutions through a portfolio of prescription therapies within women's health, biosimilars and established brands. The company was founded on March 11, 2020, and is headquartered in Jersey City, NJ.