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

Key Points

• Organon & Co. shares hit a new 52-week high, trading as high as $13.48 and ending the day slightly up. The stock has climbed well above its 50-day and 200-day moving averages.
• Analyst sentiment has improved, with several firms upgrading the stock or raising price targets. Even so, the overall consensus remains cautious, with an average rating of “Reduce” and an average price target of $11.40.
• The company recently reported mixed quarterly results, missing EPS and revenue estimates, while also announcing a small quarterly dividend. Insider buying and heavy institutional ownership were also noted as supportive signals.

Organon & Co. (NYSE:OGN - Get Free Report)'s stock price reached a new 52-week high during trading on Thursday . The stock traded as high as $13.48 and last traded at $13.4850, with a volume of 2868323 shares traded. The stock had previously closed at $13.38.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on OGN shares. Piper Sandler upgraded shares of Organon & Co. from an "underweight" rating to a "neutral" rating and upped their price target for the company from $5.00 to $14.00 in a research report on Tuesday, April 28th. 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. Weiss Ratings upgraded Organon & Co. from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, May 15th. Barclays raised their target price on Organon & Co. from $7.50 to $8.00 and gave the stock an "underweight" rating in a research report on Tuesday, February 24th. Finally, Zacks Research upgraded Organon & Co. from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 14th. Five analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Reduce" and an average price target of $11.40.

Organon & Co. Stock Up 0.7%

The stock's 50-day moving average price is $11.32 and its 200-day moving average price is $8.81. The company has a current ratio of 1.97, a quick ratio of 1.42 and a debt-to-equity ratio of 9.47. The stock has a market cap of $3.54 billion, a price-to-earnings ratio of 14.49, a P/E/G ratio of 1.24 and a beta of 1.55.

Organon & Co. (NYSE:OGN - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported $0.71 earnings per share 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 the consensus estimate of $1.49 billion. Organon & Co. had a return on equity of 99.95% and a net margin of 3.99%.Organon & Co.'s quarterly revenue was down 3.5% on a year-over-year basis. During the same period in the prior year, the business earned $1.02 EPS. On average, sell-side analysts expect that Organon & Co. will post 3.23 earnings per share for the current year.

Organon & Co. Dividend Announcement

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 $0.02 dividend. 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 payout ratio is currently 8.60%.

Insider Activity

In other Organon & Co. news, SVP Lynette Holzbaur bought 26,448 shares of the business's stock in a transaction that occurred on Wednesday, May 6th. The shares were bought 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 in the company, valued at approximately $705,560.85. This trade represents a 100.17% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.62% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Organon & Co.

Several institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its holdings in shares of Organon & Co. by 2.7% during the 4th quarter. Vanguard Group Inc. now owns 36,916,382 shares of the company's stock worth $264,690,000 after buying an additional 987,979 shares in the last quarter. State Street Corp increased its stake in shares of Organon & Co. by 2.8% in the 4th quarter. State Street Corp now owns 9,597,761 shares of the company's stock valued at $68,816,000 after acquiring an additional 262,185 shares in the last quarter. AQR Capital Management LLC lifted its position in shares of Organon & Co. by 105.2% during the 4th quarter. AQR Capital Management LLC now owns 8,570,958 shares of the company's stock valued at $61,282,000 after acquiring an additional 4,394,814 shares during the period. Private Management Group Inc. lifted its position in shares of Organon & Co. by 38.3% during the 4th quarter. Private Management Group Inc. now owns 4,347,073 shares of the company's stock valued at $31,169,000 after acquiring an additional 1,204,979 shares during the period. Finally, UBS Group AG boosted its stake in Organon & Co. by 55.2% during the fourth quarter. UBS Group AG now owns 4,295,002 shares of the company's stock worth $30,795,000 after acquiring an additional 1,527,492 shares in the last quarter. 77.43% of the stock is owned by institutional investors and hedge funds.

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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