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

Key Points

• Organon shares jumped about 28.1% premarket, gapping from $8.60 to a $10.75 open and last trading near $10.38 on roughly 7.26 million shares, putting the stock above the consensus $8.50 target.
• Analyst sentiment is negative overall — MarketBeat shows a consensus rating of "Reduce" with more sell and hold ratings than buys (4 Sells, 2 Holds, 1 Strong Buy).
• Fundamentals recently disappointed: Q4 EPS missed at $0.63 versus $0.73 expected and revenue fell 5.3% year-over-year to $1.51 billion; the company pays a small quarterly dividend ($0.08 annualized, ~0.7% yield).

Organon & Co. (NYSE:OGN - Get Free Report)'s stock price gapped up prior to trading on Friday . The stock had previously closed at $8.60, but opened at $10.75. Organon & Co. shares last traded at $10.3770, with a volume of 7,262,680 shares traded.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on OGN shares. Zacks Research raised shares of Organon & Co. from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 14th. Wall Street Zen downgraded shares of Organon & Co. from a "buy" rating to a "hold" rating in a research report on Saturday, January 31st. Finally, Barclays increased their price objective on shares of Organon & Co. from $7.50 to $8.00 and gave the company an "underweight" rating in a research report on Tuesday, February 24th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, Organon & Co. currently has a consensus rating of "Reduce" and a consensus target price of $8.50.

Organon & Co. Stock Up 28.1%

The company's 50-day moving average is $7.14 and its 200 day moving average is $7.67. The company has a market capitalization of $2.87 billion, a PE ratio of 15.77, a P/E/G ratio of 0.84 and a beta of 0.67. 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 announced its quarterly earnings data on Thursday, February 12th. The company reported $0.63 EPS 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 firm had revenue of $1.51 billion for the quarter, compared to analysts' expectations of $1.52 billion. During the same period last year, the company posted $0.90 earnings per share. The business's revenue for the quarter was down 5.3% compared to the same quarter last year. As a group, analysts anticipate that Organon & Co. will post 3.24 EPS for the current year.

Organon & Co. Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, March 12th. Shareholders of record on Monday, February 23rd were paid a dividend of $0.02 per share. The ex-dividend date was Monday, February 23rd. This represents a $0.08 annualized dividend and a yield of 0.7%. Organon & Co.'s dividend payout ratio is currently 11.27%.

Hedge Funds Weigh In On Organon & Co.

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Sector Gamma AS bought a new position in Organon & Co. during the 3rd quarter valued at about $5,807,000. Gotham Asset Management LLC lifted its stake in Organon & Co. by 37.2% during the 3rd quarter. Gotham Asset Management LLC now owns 3,713,204 shares of the company's stock valued at $39,657,000 after acquiring an additional 1,007,691 shares during the period. Vanguard Group Inc. lifted its stake in Organon & Co. by 11.3% during the 3rd quarter. Vanguard Group Inc. now owns 35,928,403 shares of the company's stock valued at $383,715,000 after acquiring an additional 3,650,860 shares during the period. Y Intercept Hong Kong Ltd bought a new position in Organon & Co. during the 3rd quarter valued at about $2,000,000. Finally, Poehling Capital Management INC. lifted its stake in Organon & Co. by 57.7% during the 3rd quarter. Poehling Capital Management INC. now owns 317,748 shares of the company's stock valued at $3,394,000 after acquiring an additional 116,289 shares during the period. Institutional investors own 77.43% of the company's stock.

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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