Investment firm 17 Capital Partners LLC has raised its holdings in Merck & Co., Inc. (NYSE: MRK) by 13.9% during the second quarter, as detailed in its latest filing with the U.S. Securities and Exchange Commission. The firm now owns 7,635 shares of the pharmaceutical giant, having acquired an additional 930 shares during this period, bringing the total value of its holdings to approximately $604,000.
Several other institutional investors have also made adjustments to their positions in Merck recently. Winnow Wealth LLC purchased a new stake valued at around $45,000 in the second quarter. Additionally, NFP Retirement Inc. increased its investment in Merck by 5.1%, now holding 7,230 shares valued at $572,000. Ensign Peak Advisors Inc. has also boosted its stake by 20.5%, acquiring 536,384 shares for a total value of approximately $249.49 million.
In a similar vein, TRUE Private Wealth Advisors raised its holdings in Merck by 12.2%, now owning 6,955 shares worth $551,000. Overall, institutional investors hold 76.07% of Merck’s stock, reflecting strong interest in the company.
Executive Sale and Market Performance
In other news concerning Merck, executive vice president David Michael Williams sold 8,614 shares of the company on November 3, 2023. The shares were sold at an average price of $83.59, amounting to a total transaction of about $720,044.26. Following this sale, Williams retains 24,578 shares, valued at approximately $2.05 million, which reflects a reduction of 25.95% in his holdings. Insider ownership currently accounts for just 0.13% of Merck’s stock.
As of Thursday, shares of Merck opened at $95.16, reflecting a decline of 1.3% from previous trading sessions. The company’s financial metrics include a current ratio of 1.42, a quick ratio of 1.17, and a debt-to-equity ratio of 0.69. Over the past year, Merck shares have fluctuated between a low of $73.31 and a high of $105.07. The firm boasts a market capitalization of $236.20 billion, a price-to-earnings ratio of 14.66, and a beta of 0.34.
Recently, Merck reported its earnings results for the third quarter on October 30, 2023. The company achieved earnings per share of $2.58, surpassing analysts’ expectations of $2.36 by $0.22. Revenues for the quarter reached $17.28 billion, exceeding the consensus estimate of $17 billion, contributing to a year-over-year revenue increase of 3.7%. In the same quarter last year, Merck recorded earnings of $1.57 per share.
Dividend Announcement and Analyst Ratings
Merck has also announced a quarterly dividend of $0.85, scheduled for payment on January 8, 2024. Shareholders on record as of December 15, 2023, will receive this dividend, equating to an annualized amount of $3.40 and a yield of 3.6%. This marks an increase from the previous quarterly dividend of $0.81. The company currently maintains a payout ratio of 42.80%.
Analysts have shown varied perspectives on Merck’s stock. Scotiabank recently initiated coverage, recommending a “sector outperform” rating with a price target of $105.00. Conversely, Wells Fargo & Company reduced its target price from $97.00 to $90.00 while maintaining an “equal weight” rating. According to MarketBeat, the consensus rating for Merck is currently “Hold” with an average price target of $104.88.
In summary, as institutional interest continues to grow in Merck & Co., Inc., the company’s solid financial performance and dividend increase signal its ongoing stability in the pharmaceutical market.
