Traders Buy Large Volume of Merck & Co., Inc. Call Options (NYSE:MRK)

Key Points

• Merck & Co., Inc. saw a significant increase in options trading, with investors purchasing 68,419 call options, an increase of 68% from the usual volume.
• The company's stock rose 6.8%, reaching $83.96, with a trading volume of over 21 million shares compared to its average of around 15 million.
• Merck recently announced a quarterly dividend of $0.81 per share, reflecting a 3.9% annual yield and a payout ratio of about 49.92%.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) was the target of some unusual options trading on Tuesday. Investors purchased 68,419 call options on the stock. This represents an increase of 68% compared to the typical daily volume of 40,831 call options.

Merck & Co., Inc. Stock Up 6.8%

NYSE:MRK traded up $5.38 during trading hours on Tuesday, hitting $83.96. The company's stock had a trading volume of 21,624,017 shares, compared to its average volume of 15,028,813. The stock has a market capitalization of $209.71 billion, a P/E ratio of 12.94, a price-to-earnings-growth ratio of 0.81 and a beta of 0.37. The stock has a fifty day moving average of $82.51 and a 200-day moving average of $81.69. The company has a current ratio of 1.42, a quick ratio of 1.17 and a debt-to-equity ratio of 0.69. Merck & Co., Inc. has a 52-week low of $73.31 and a 52-week high of $114.79.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The company reported $2.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.03 by $0.10. The company had revenue of $15.81 billion for the quarter, compared to analyst estimates of $15.92 billion. Merck & Co., Inc. had a return on equity of 41.05% and a net margin of 25.79%. Merck & Co., Inc. has set its FY 2025 guidance at 8.870-8.970 EPS. On average, equities analysts forecast that Merck & Co., Inc. will post 9.01 earnings per share for the current year.

Merck & Co., Inc. Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 7th. Shareholders of record on Monday, September 15th will be issued a dividend of $0.81 per share. The ex-dividend date of this dividend is Monday, September 15th. This represents a $3.24 annualized dividend and a dividend yield of 3.9%. Merck & Co., Inc.'s dividend payout ratio (DPR) is presently 49.92%.

Analyst Ratings Changes

Several analysts have recently issued reports on MRK shares. Wells Fargo & Company reduced their price objective on Merck & Co., Inc. from $97.00 to $90.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 30th. Berenberg Bank cut Merck & Co., Inc. from a "buy" rating to a "hold" rating and reduced their price objective for the company from $100.00 to $90.00 in a research note on Wednesday, September 17th. Finally, Morgan Stanley reduced their price objective on Merck & Co., Inc. from $99.00 to $98.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 10th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $106.41.

Hedge Funds Weigh In On Merck & Co., Inc.

Several hedge funds have recently made changes to their positions in MRK. Legend Financial Advisors Inc. purchased a new position in shares of Merck & Co., Inc. during the second quarter worth about $25,000. Barnes Dennig Private Wealth Management LLC purchased a new position in shares of Merck & Co., Inc. during the first quarter worth about $27,000. Kilter Group LLC purchased a new position in shares of Merck & Co., Inc. during the second quarter worth about $27,000. Bare Financial Services Inc grew its holdings in shares of Merck & Co., Inc. by 51.9% during the second quarter. Bare Financial Services Inc now owns 366 shares of the company's stock worth $29,000 after buying an additional 125 shares during the last quarter. Finally, Evolution Wealth Management Inc. purchased a new position in shares of Merck & Co., Inc. during the second quarter worth about $31,000. Hedge funds and other institutional investors own 76.07% of the company's stock.

About Merck & Co., Inc.

Merck & Co, Inc is a health care company, which engages in the provision of health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. It operates through the following segments: Pharmaceutical, Animal Health, and Other. The Pharmaceutical segment includes human health pharmaceutical and vaccine products.

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