Organon & Co. (NYSE:OGN) Trading Up 13.1% - Still a Buy?

Key Points

• Shares jumped 13.1% midday to about $6.63 on Thursday, with roughly 2.95 million shares traded (about 39% below the stock's average daily volume).
• Wall Street sentiment is weak: Organon has an average rating of “Reduce” with a consensus price target of $8.50, based on 1 Strong Buy, 1 Hold and 5 Sell ratings.
• The company missed Q4 estimates (EPS $0.63 vs. $0.73 expected; revenue $1.51B vs. $1.52B, down 5.3% YoY); Organon has a $1.79B market cap, a PE of 9.67 and pays a $0.02 quarterly dividend (≈1.2% yield).

Shares of Organon & Co. (NYSE:OGN - Get Free Report) were up 13.1% during mid-day trading on Thursday . The company traded as high as $6.55 and last traded at $6.6250. Approximately 2,951,357 shares traded hands during mid-day trading, a decline of 39% from the average daily volume of 4,814,001 shares. The stock had previously closed at $5.86.

Wall Street Analyst Weigh In

OGN has been the topic of a number of recent analyst reports. Zacks Research lowered Organon & Co. from a "hold" rating to a "strong sell" rating in a research note on Thursday, January 29th. Barclays increased 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, Wall Street Zen lowered Organon & Co. from a "buy" rating to a "hold" rating in a research note on Saturday, January 31st. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat.com, Organon & Co. presently has an average rating of "Reduce" and a consensus price target of $8.50.

Organon & Co. Trading Up 17.0%

The company has a market cap of $1.79 billion, a PE ratio of 9.67, a price-to-earnings-growth ratio of 0.59 and a beta of 0.67. The business has a 50 day simple moving average of $6.96 and a two-hundred day simple moving average of $7.78. The company has a current ratio of 1.82, a quick ratio of 1.23 and a debt-to-equity ratio of 11.47.

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

Organon & Co. Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 12th. Stockholders of record on Monday, February 23rd were issued a dividend of $0.02 per share. This represents a $0.08 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date was Monday, February 23rd. Organon & Co.'s dividend payout ratio is presently 11.27%.

Institutional Trading of Organon & Co.

Institutional investors and hedge funds have recently made changes to their positions in the company. Foster Dykema Cabot & Partners LLC acquired a new stake in shares of Organon & Co. during the 3rd quarter worth $29,000. Rothschild Investment LLC increased 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 buying an additional 1,646 shares during the last quarter. Farther Finance Advisors LLC increased its holdings in Organon & Co. by 87.8% in the 4th quarter. Farther Finance Advisors LLC now owns 4,349 shares of the company's stock valued at $31,000 after purchasing an additional 2,033 shares in the last quarter. Smartleaf Asset Management LLC increased its holdings in Organon & Co. by 70.2% in the 3rd quarter. Smartleaf Asset Management LLC now owns 5,113 shares of the company's stock valued at $53,000 after purchasing an additional 2,109 shares in the last quarter. Finally, Eurizon Capital SGR S.p.A. acquired a new stake in Organon & Co. in the 4th quarter valued at $44,000. 77.43% of the stock is currently 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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