Organon & Co. (NYSE:OGN) Shares Gap Up - Should You Buy?

Key Points

• Shares gapped up pre-market from $6.91 to an $8.01 open and were last quoted around $8.48 on volume of about 9.58 million shares, signaling a sharp intraday move.
• Analysts have mostly turned negative — one Strong Buy, one Hold and five Sells — leaving an average rating of "Reduce" and a consensus price target of $8.50 after recent downgrades from Wall Street Zen and Zacks.
• Organon missed Q4 estimates (EPS $0.63 vs. $0.73 expected) and saw revenue down 5.3% year‑over‑year; the company has a $2.24 billion market cap, P/E of 12.12, and pays a small quarterly dividend ($0.02, ~0.9% yield).

Organon & Co. (NYSE:OGN - Get Free Report) shares gapped up before the market opened on Friday . The stock had previously closed at $6.91, but opened at $8.01. Organon & Co. shares last traded at $8.4760, with a volume of 9,579,895 shares.

Analyst Ratings Changes

Several equities analysts recently weighed in on OGN shares. Wall Street Zen cut Organon & Co. from a "buy" rating to a "hold" rating in a research report on Saturday, January 31st. Zacks Research cut Organon & Co. from a "hold" rating to a "strong sell" rating in a research report on Thursday, January 29th. Finally, Barclays boosted their price objective on Organon & Co. from $7.50 to $8.00 and gave the stock an "underweight" rating in a research report on Tuesday, February 24th. One 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 company's stock. According to MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus price target of $8.50.

Organon & Co. Stock Performance

The company has a market capitalization of $2.24 billion, a P/E ratio of 12.12, a price-to-earnings-growth ratio of 0.54 and a beta of 0.67. The firm has a 50 day moving average price of $6.93 and a two-hundred day moving average price of $7.78. The company has a debt-to-equity ratio of 11.47, a quick ratio of 1.23 and a current ratio of 1.82.

Organon & Co. (NYSE:OGN - Get Free Report) last released its quarterly earnings data on Thursday, February 12th. The company reported $0.63 earnings per share for the quarter, missing the consensus estimate of $0.73 by ($0.10). Organon & Co. had a net margin of 3.01% and a return on equity of 122.01%. The company had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.52 billion. During the same quarter in the prior year, the company posted $0.90 earnings per share. The company's revenue for the quarter was down 5.3% on a year-over-year basis. On average, research analysts expect that Organon & Co. will post 3.68 earnings per share for the current fiscal year.

Organon & Co. Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, March 12th. Stockholders of record on Monday, February 23rd were paid a $0.02 dividend. This represents a $0.08 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Monday, February 23rd. Organon & Co.'s dividend payout ratio is currently 11.27%.

Institutional Investors Weigh In On Organon & Co.

A number of large investors have recently bought and sold shares of the business. GAMMA Investing LLC grew its position in Organon & Co. by 22.4% during the 3rd quarter. GAMMA Investing LLC now owns 6,910 shares of the company's stock worth $74,000 after acquiring an additional 1,265 shares during the last quarter. Rexford Capital Inc. grew its position in Organon & Co. by 14.9% during the 3rd quarter. Rexford Capital Inc. now owns 11,380 shares of the company's stock worth $122,000 after acquiring an additional 1,480 shares during the last quarter. Amalgamated Bank grew its position in Organon & Co. by 1.9% during the 3rd quarter. Amalgamated Bank now owns 79,805 shares of the company's stock worth $852,000 after acquiring an additional 1,514 shares during the last quarter. State of Alaska Department of Revenue grew its position in Organon & Co. by 0.6% during the 4th quarter. State of Alaska Department of Revenue now owns 278,379 shares of the company's stock worth $1,995,000 after acquiring an additional 1,570 shares during the last quarter. Finally, Integrated Wealth Concepts LLC grew its position in Organon & Co. by 2.8% during the 3rd quarter. Integrated Wealth Concepts LLC now owns 58,648 shares of the company's stock worth $626,000 after acquiring an additional 1,594 shares during the last quarter. 77.43% of the stock is currently owned by institutional investors.

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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