Organon & Co. (NYSE:OGN) Sets New 1-Year High - Still a Buy?

Key Points

• Organon & Co. shares hit a new 52-week high on Monday, reaching as much as $13.47 before closing near $13.46.
• Analyst sentiment remains cautious: multiple firms have recently adjusted ratings, and the stock now carries a consensus “Reduce” rating with an average price target of $11.40.
• Recent fundamentals were mixed, as the company missed quarterly EPS and revenue estimates in its latest report, even as it announced a quarterly dividend and saw an insider purchase of shares.

Organon & Co. (NYSE:OGN - Get Free Report)'s stock price reached a new 52-week high during trading on Monday . The company traded as high as $13.47 and last traded at $13.4550, with a volume of 536582 shares traded. The stock had previously closed at $13.40.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on OGN. Wall Street Zen lowered Organon & Co. from a "buy" rating to a "hold" rating in a research report on Saturday, January 31st. Weiss Ratings raised Organon & Co. from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday. Barclays raised 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. Piper Sandler upgraded shares of Organon & Co. from an "underweight" rating to a "neutral" rating and increased their target price for the stock from $5.00 to $14.00 in a research note 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 investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Organon & Co. has a consensus rating of "Reduce" and an average target price of $11.40.

Organon & Co. Stock Performance

The company has a quick ratio of 1.42, a current ratio of 1.97 and a debt-to-equity ratio of 9.47. The company has a market capitalization of $3.53 billion, a PE ratio of 14.45, a PEG ratio of 1.24 and a beta of 1.57. The stock's fifty day simple moving average is $8.74 and its 200-day simple moving average is $8.01.

Organon & Co. (NYSE:OGN - Get Free Report) last issued 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 company had revenue of $1.46 billion during the quarter, compared to analysts' expectations of $1.49 billion. During the same period last year, the business posted $1.02 earnings per share. The company's quarterly revenue was down 3.5% on a year-over-year basis. On average, research analysts predict that Organon & Co. will post 3.23 earnings per share for the current fiscal year.

Organon & Co. Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Monday, May 11th will be paid a dividend of $0.02 per share. This represents a $0.08 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Monday, May 11th. Organon & Co.'s dividend payout ratio (DPR) is 8.60%.

Insider Buying and Selling at Organon & Co.

In other Organon & Co. news, SVP Lynette Holzbaur acquired 26,448 shares of the company's stock in a transaction dated Wednesday, May 6th. The stock was acquired at an average cost of $13.35 per share, with a total value of $353,080.80. Following the purchase, the senior vice president directly owned 52,851 shares in the company, valued at approximately $705,560.85. This trade represents a 100.17% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. 1.62% of the stock is currently owned by company insiders.

Institutional Trading of Organon & Co.

Several hedge funds and other institutional investors have recently bought and sold shares of OGN. AQR Capital Management LLC boosted its holdings in shares of Organon & Co. by 105.2% in the 4th quarter. AQR Capital Management LLC now owns 8,570,958 shares of the company's stock valued at $61,282,000 after purchasing an additional 4,394,814 shares during the last quarter. Vanguard Group Inc. raised its holdings in Organon & Co. by 11.3% in the third quarter. Vanguard Group Inc. now owns 35,928,403 shares of the company's stock valued at $383,715,000 after buying an additional 3,650,860 shares during the period. UBS Group AG raised its holdings in Organon & Co. by 55.2% in the fourth quarter. UBS Group AG now owns 4,295,002 shares of the company's stock valued at $30,795,000 after buying an additional 1,527,492 shares during the period. First Trust Advisors LP raised its holdings in Organon & Co. by 78.1% in the first quarter. First Trust Advisors LP now owns 3,227,320 shares of the company's stock valued at $19,332,000 after buying an additional 1,415,239 shares during the period. Finally, Private Management Group Inc. raised its holdings in Organon & Co. by 38.3% in the fourth quarter. Private Management Group Inc. now owns 4,347,073 shares of the company's stock valued at $31,169,000 after buying an additional 1,204,979 shares during the period. 77.43% of the stock is 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.