Merck & Co., Inc. (NYSE:MRK) Hits New 12-Month Low Following Weak Earnings

Merck & Co., Inc. (NYSE:MRK)’s share price reached a new 52-week low during trading on Tuesday following a dissappointing earnings announcement. The stock traded as low as $91.35 and last traded at $88.92, with a volume of 3855597 shares. The stock had previously closed at $99.79.

The company reported $1.72 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.85 by ($0.13). Merck & Co., Inc. had a net margin of 19.23% and a return on equity of 36.42%.

Merck & Co., Inc. Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, April 7th. Shareholders of record on Monday, March 17th will be given a dividend of $0.81 per share. The ex-dividend date of this dividend is Monday, March 17th. This represents a $3.24 dividend on an annualized basis and a yield of 3.66%. Merck & Co., Inc.’s dividend payout ratio is presently 67.92%.

Merck & Co., Inc. announced that its Board of Directors has approved a share buyback plan on Tuesday, January 28th that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the company to purchase up to 4.1% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on MRK. UBS Group lowered their target price on shares of Merck & Co., Inc. from $125.00 to $120.00 and set a “buy” rating on the stock in a report on Wednesday, January 8th. Citigroup dropped their price objective on Merck & Co., Inc. from $130.00 to $125.00 and set a “buy” rating on the stock in a report on Tuesday, January 28th. Bank of America reaffirmed a “buy” rating and set a $121.00 target price on shares of Merck & Co., Inc. in a report on Tuesday, December 10th. Daiwa America lowered shares of Merck & Co., Inc. from a “strong-buy” rating to a “hold” rating in a research report on Monday, November 11th. Finally, Daiwa Capital Markets lowered shares of Merck & Co., Inc. from a “buy” rating to a “neutral” rating in a report on Monday, November 11th. One research analyst has rated the stock with a sell rating, eight have given a hold rating, nine have issued a buy rating and three have given a strong buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $122.67.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Financial Life Planners bought a new position in Merck & Co., Inc. in the fourth quarter worth $28,000. Darwin Wealth Management LLC purchased a new position in shares of Merck & Co., Inc. in the 3rd quarter worth about $32,000. AM Squared Ltd bought a new position in Merck & Co., Inc. in the 3rd quarter valued at approximately $34,000. Safe Harbor Fiduciary LLC purchased a new stake in shares of Merck & Co., Inc. during the third quarter valued at $34,000. Finally, Peterson Financial Group Inc. bought a new stake in shares of Merck & Co., Inc. in the third quarter worth approximately $36,000. 76.07% of the stock is currently owned by institutional investors.

Merck & Co., Inc. Stock Performance

The business’s 50 day simple moving average is $99.83 and its two-hundred day simple moving average is $107.54. The company has a current ratio of 1.36, a quick ratio of 1.15 and a debt-to-equity ratio of 0.79. The firm has a market capitalization of $224.09 billion, a PE ratio of 18.58, a price-to-earnings-growth ratio of 1.20 and a beta of 0.38.

Merck & Co., Inc. Company Profile

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.