Organon & Co. (NYSE:OGN) Trading Down 5% - Here's What Happened

Key Points

• Organon shares fell about 5% mid-day to $9.275 (low of $9.21), with ~5.13 million shares traded—about 10% below average session volume.
• Analyst sentiment is weak: the stock has an average rating of "Reduce" and a consensus target of $8.50 after recent downgrades and an "underweight" view from Barclays.
• The company missed Q4 expectations, reporting EPS of $0.63 vs. $0.73 estimated and revenue of $1.51B (down 5.3% YoY), and pays a small quarterly dividend of $0.02 (annualized yield ~0.9%).

Organon & Co. (NYSE:OGN - Get Free Report) shares traded down 5% during mid-day trading on Monday . The stock traded as low as $9.21 and last traded at $9.2750. 5,129,393 shares were traded during trading, a decline of 10% from the average session volume of 5,724,295 shares. The stock had previously closed at $9.76.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on the company. Wall Street Zen downgraded Organon & Co. from a "buy" rating to a "hold" rating in a research note on Saturday, January 31st. Barclays upped their price target on Organon & Co. from $7.50 to $8.00 and gave the stock an "underweight" rating in a research note on Tuesday, February 24th. Finally, Zacks Research upgraded shares of Organon & Co. from a "strong sell" rating to a "hold" rating in a report on Tuesday, April 14th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus target price of $8.50.

Organon & Co. Price Performance

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 stock's fifty day simple moving average is $7.03 and its 200-day simple moving average is $7.68. The company has a market capitalization of $2.42 billion, a P/E ratio of 13.07, a PEG ratio of 0.90 and a beta of 0.67.

Organon & Co. (NYSE:OGN - Get Free Report) last released its quarterly 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). 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 the consensus estimate of $1.52 billion. During the same quarter last year, the company earned $0.90 earnings per share. The firm's revenue was down 5.3% on a year-over-year basis. On average, equities analysts forecast that Organon & Co. will post 3.68 earnings per share for the current fiscal year.

Organon & Co. Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, March 12th. Shareholders of record on Monday, February 23rd were issued 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 yield of 0.9%. Organon & Co.'s dividend payout ratio is 11.27%.

Institutional Trading of Organon & Co.

A number of hedge funds have recently bought and sold shares of the stock. GAMMA Investing LLC boosted its holdings in Organon & Co. by 22.4% in the 3rd quarter. GAMMA Investing LLC now owns 6,910 shares of the company's stock valued at $74,000 after purchasing an additional 1,265 shares during the period. Rexford Capital Inc. increased its stake in Organon & Co. by 14.9% during the third quarter. Rexford Capital Inc. now owns 11,380 shares of the company's stock valued at $122,000 after acquiring an additional 1,480 shares during the period. Amalgamated Bank increased its stake in Organon & Co. by 1.9% during the third quarter. Amalgamated Bank now owns 79,805 shares of the company's stock valued at $852,000 after acquiring an additional 1,514 shares during the period. State of Alaska Department of Revenue increased its stake in Organon & Co. by 0.6% during the fourth quarter. State of Alaska Department of Revenue now owns 278,379 shares of the company's stock valued at $1,995,000 after acquiring an additional 1,570 shares during the period. Finally, Integrated Wealth Concepts LLC increased its stake in Organon & Co. by 2.8% during the third quarter. Integrated Wealth Concepts LLC now owns 58,648 shares of the company's stock valued at $626,000 after acquiring an additional 1,594 shares during the period. 77.43% of the stock is 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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