Organon & Co. (NYSE:OGN) Shares Gap Up - Time to Buy?

Key Points

• Organon shares gapped up to $9.67 from $9.21 on Thursday (last at $9.31), but analysts have a consensus rating of "Reduce" with an average price target of $8.50 and a mix of one Strong Buy, two Hold and four Sell ratings.
• The company missed Q4 estimates—EPS $0.63 vs $0.73 and revenue $1.51B vs $1.52B, with revenue down 5.3% YoY—while trading at a PE of 13.1, paying a $0.02 quarterly dividend (0.9% yield) and holding roughly 77.4% institutional ownership.

Organon & Co. (NYSE:OGN - Get Free Report) gapped up before the market opened on Thursday . The stock had previously closed at $9.21, but opened at $9.67. Organon & Co. shares last traded at $9.3070, with a volume of 3,069,525 shares trading hands.

Analyst Ratings Changes

A number of equities analysts have weighed in on the company. Barclays lifted their price objective on Organon & Co. from $7.50 to $8.00 and gave the company an "underweight" rating in a research note on Tuesday, February 24th. Wall Street Zen lowered Organon & Co. from a "buy" rating to a "hold" rating in a research note on Saturday, January 31st. Finally, Zacks Research upgraded Organon & Co. from a "strong sell" rating to a "hold" rating in a research note on Tuesday. One research analyst has rated the stock with a Strong Buy rating, two have issued a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average target price of $8.50.

Organon & Co. Trading Up 0.9%

The company has a debt-to-equity ratio of 11.47, a quick ratio of 1.23 and a current ratio of 1.82. The company has a 50 day moving average of $6.97 and a two-hundred day moving average of $7.71. The stock has a market cap of $2.42 billion, a PE ratio of 13.12, a price-to-earnings-growth ratio of 0.80 and a beta of 0.67.

Organon & Co. (NYSE:OGN - Get Free Report) last announced its quarterly earnings results 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 business had revenue of $1.51 billion during the quarter, compared to analysts' expectations of $1.52 billion. During the same quarter in the prior year, the firm earned $0.90 EPS. Organon & Co.'s revenue for the quarter was down 5.3% on a year-over-year basis. Sell-side analysts anticipate that Organon & Co. will post 3.68 earnings per share for the current fiscal year.

Organon & Co. Dividend Announcement

The company also recently disclosed 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. This represents a $0.08 annualized dividend and a yield of 0.9%. The ex-dividend date was Monday, February 23rd. Organon & Co.'s payout ratio is 11.27%.

Institutional Investors Weigh In On Organon & Co.

Several large investors have recently bought and sold shares of OGN. Foster Dykema Cabot & Partners LLC purchased a new stake in Organon & Co. during the 3rd quarter worth approximately $29,000. Farther Finance Advisors LLC boosted its holdings in shares of 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 purchasing an additional 2,033 shares during the last quarter. Rothschild Investment LLC boosted its holdings in shares of 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 purchasing an additional 1,646 shares during the last quarter. Eurizon Capital SGR S.p.A. acquired a new position in shares of Organon & Co. during the 4th quarter worth approximately $44,000. Finally, Kestra Advisory Services LLC acquired a new stake in shares of Organon & Co. in the 4th quarter worth $47,000. 77.43% of the stock is currently owned by hedge funds and other 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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