Organon & Co. (NYSE:OGN) Shares Down 6.4% - Time to Sell?

Key Points

• Shares dropped 6.4% to $8.27 on Monday with volume up ~25% versus average, leaving the stock trading roughly in line with the consensus price target of $8.50.
• Analysts have been cutting ratings recently (Wall Street Zen and Zacks downgraded; Barclays is underweight), and the street consensus is a "Reduce" rating (five Sells, one Hold, one Strong Buy).
• Latest results showed an EPS miss ($0.63 vs. $0.73 expected) and revenue down 5.3% year-over-year, while the company carries a very high debt-to-equity ratio (11.47) and offers a modest 1.0% dividend yield.

Organon & Co. (NYSE:OGN - Get Free Report)'s stock price fell 6.4% during trading on Monday . The company traded as low as $8.26 and last traded at $8.2650. 6,793,980 shares traded hands during mid-day trading, an increase of 25% from the average session volume of 5,446,752 shares. The stock had previously closed at $8.83.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on OGN. Wall Street Zen downgraded Organon & Co. from a "buy" rating to a "hold" rating in a report on Saturday, January 31st. Zacks Research downgraded Organon & Co. from a "hold" rating to a "strong sell" rating in a report on Thursday, January 29th. Finally, Barclays boosted their price objective on Organon & Co. from $7.50 to $8.00 and gave the company an "underweight" rating in a report on Tuesday, February 24th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Reduce" and a consensus price target of $8.50.

Organon & Co. Price Performance

The company has a market capitalization of $2.18 billion, a PE ratio of 11.80, a price-to-earnings-growth ratio of 0.81 and a beta of 0.67. The company has a debt-to-equity ratio of 11.47, a current ratio of 1.82 and a quick ratio of 1.23. The company's 50 day simple moving average is $6.93 and its 200 day simple moving average is $7.73.

Organon & Co. (NYSE:OGN - Get Free Report) last announced its earnings results on Thursday, February 12th. The company reported $0.63 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.73 by ($0.10). The firm had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.52 billion. Organon & Co. had a net margin of 3.01% and a return on equity of 122.01%. The firm's revenue for the quarter was down 5.3% compared to the same quarter last year. During the same period last year, the company earned $0.90 earnings per share. As a group, sell-side analysts predict that Organon & Co. will post 3.68 earnings per share for the current year.

Organon & Co. Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 12th. Investors of record on Monday, February 23rd were given a $0.02 dividend. The ex-dividend date of this dividend was Monday, February 23rd. This represents a $0.08 dividend on an annualized basis and a dividend yield of 1.0%. Organon & Co.'s dividend payout ratio is 11.27%.

Institutional Trading of Organon & Co.

Hedge funds have recently added to or reduced their stakes in the stock. Foster Dykema Cabot & Partners LLC acquired a new stake in Organon & Co. during the 3rd quarter worth approximately $29,000. Rothschild Investment LLC lifted its position in Organon & Co. by 73.1% during the 3rd quarter. Rothschild Investment LLC now owns 3,899 shares of the company's stock worth $42,000 after acquiring an additional 1,646 shares during the period. Farther Finance Advisors LLC lifted its position in Organon & Co. by 87.8% during the 4th quarter. Farther Finance Advisors LLC now owns 4,349 shares of the company's stock worth $31,000 after acquiring an additional 2,033 shares during the period. Smartleaf Asset Management LLC lifted its position in Organon & Co. by 70.2% during the 3rd quarter. Smartleaf Asset Management LLC now owns 5,113 shares of the company's stock worth $53,000 after acquiring an additional 2,109 shares during the period. Finally, Eurizon Capital SGR S.p.A. acquired a new stake in Organon & Co. during the 4th quarter worth approximately $44,000. 77.43% of the stock is owned by institutional investors and hedge funds.

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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