Organon & Co. (NYSE:OGN) Upgraded by Zacks Research to "Hold" Rating

Key Points

• Zacks Research upgraded Organon & Co. from a "strong sell" to a "hold," but the analyst consensus remains negative with a MarketBeat "Reduce" rating and an average target price of $8.50.
• Shares jumped about 6.4% to open at $9.26, giving Organon a market cap of $2.41 billion; the stock trades at a PE of 13.04 and has a 52-week range of $5.69 to $13.24.
• Organon reported Q4 EPS of $0.63 (vs. $0.73 expected) and revenue of $1.51 billion (slightly below estimates), with revenue down 5.3% year-over-year and a net margin of 3.01%; analysts forecast 3.68 EPS for the current year.

Organon & Co. (NYSE:OGN - Get Free Report) was upgraded by research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Several other brokerages have also issued reports on OGN. Barclays raised their target price on shares of 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 shares of Organon & Co. from a "buy" rating to a "hold" rating in a research note on Saturday, January 31st. One 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 stock. According to MarketBeat, the company has a consensus rating of "Reduce" and an average target price of $8.50.

Organon & Co. Stock Up 6.4%

Shares of NYSE OGN opened at $9.26 on Tuesday. The firm has a market capitalization of $2.41 billion, a PE ratio of 13.04, a price-to-earnings-growth ratio of 0.80 and a beta of 0.67. 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. has a 1 year low of $5.69 and a 1 year high of $13.24. The firm's 50-day moving average is $6.97 and its 200-day moving average is $7.71.

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Hsbc Holdings PLC boosted its stake in Organon & Co. by 17.2% during the 4th quarter. Hsbc Holdings PLC now owns 22,953 shares of the company's stock worth $165,000 after acquiring an additional 3,373 shares during the last quarter. Corient Private Wealth LLC lifted its stake in Organon & Co. by 57.3% in the fourth quarter. Corient Private Wealth LLC now owns 35,727 shares of the company's stock valued at $256,000 after buying an additional 13,019 shares in the last quarter. Alpine Global Management LLC bought a new position in Organon & Co. in the fourth quarter valued at approximately $180,000. Invesco Ltd. lifted its stake in Organon & Co. by 38.1% in the fourth quarter. Invesco Ltd. now owns 2,222,248 shares of the company's stock valued at $15,934,000 after buying an additional 613,352 shares in the last quarter. Finally, Mercer Global Advisors Inc. ADV lifted its stake in Organon & Co. by 8.7% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 53,577 shares of the company's stock valued at $384,000 after buying an additional 4,308 shares in the last quarter. Institutional investors own 77.43% of the company's stock.

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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