Transcend Capital Advisors LLC Sells Shares of Merck & Co., Inc.

Transcend Capital Advisors LLC has decreased its stake in Merck & Co., Inc. (NYSE: MRK) by 3.2% during the fourth quarter, as stated in its recent 13F filing with the Securities and Exchange Commission. Following the sale of 9,344 shares during this period, the institutional investor now holds 284,715 shares of Merck's stock. This position constitutes 2.0% of Transcend's overall investment portfolio, ranking as its sixth largest position. According to the latest filing, Transcend Capital Advisors LLC's holdings in Merck are valued at approximately $28,323,000.

A number of other institutional investors have also adjusted their positions in Merck recently. In the third quarter, AMF Tjanstepension AB increased its holdings by 114.2%, acquiring an additional 427,831 shares, bringing its total to 802,384 shares valued at $91,205,000. Similarly, Swedbank AB raised its position by 38.6%, now owning 7,530,111 shares worth $855,119,000 after a purchase of 2,095,694 shares. Stanley Laman Group Ltd. and Wallington Asset Management LLC also increased their stakes by 19.4% and 40.4%, respectively. Overall, institutional investors and hedge funds control about 76.07% of Merck's stock.

Merck & Co., Inc. Price Overview

As of Friday, shares of Merck & Co., Inc. opened at $87.64. The company has a debt-to-equity ratio of 0.79 and current and quick ratios of 1.36 and 1.15, respectively. Over the past year, Merck's stock has fluctuated between a low of $81.04 and a high of $134.63, with a total market capitalization of $221.70 billion. Its price-to-earnings ratio stands at 13.02, complemented by a PEG ratio of 0.73 and a beta of 0.38. The 50-day moving average is $95.71, and the 200-day moving average is $104.37.

In its latest quarterly earnings report released on February 4, Merck reported earnings per share (EPS) of $1.72, which fell short of the expected $1.85 by $0.13. The company's net margin was 26.67% with a return on equity of 45.35%. Revenue for the quarter reached $15.62 billion, surpassing analyst expectations of $15.51 billion, and was an increase of 6.8% compared to the same quarter last year.

Dividend Details from Merck & Co., Inc.

Merck & Co., Inc. has announced a quarterly dividend scheduled for payment on April 7. Shareholders recorded on March 17 will receive a dividend of $0.81, which translates to an annualized payout of $3.24 and a yield of 3.70%. Currently, the dividend payout ratio is at 48.14%.

The Board of Directors also approved a share buyback plan on January 28, allowing for the repurchase of up to $10.00 billion in stock, equivalent to approximately 4.1% of its shares. Such repurchase initiatives typically indicate management's confidence that the shares are undervalued.

Analysts' Ratings on Merck & Co., Inc.

Several analysts have recently provided updates on Merck stock. HSBC upgraded its rating from 'hold' to 'buy,' setting a price target of $130.00. In contrast, Morgan Stanley reduced its price target from $113.00 to $106.00 but maintained an 'equal weight' rating. Wolfe Research initiated a 'peer perform' rating, while Daiwa Capital Markets downgraded the rating from 'buy' to 'neutral'. Currently, one analyst rates the stock as 'sell', eleven as 'hold', nine as 'buy', and three as 'strong buy', yielding an overall consensus rating of 'Moderate Buy' with an average target price of $116.39.

Insider Activity in Merck & Co., Inc.

In recent insider transactions, Director Inge G. Thulin purchased 2,833 shares at approximately $88.25 each, totaling $250,012. Following this transaction, Thulin now owns 2,933 shares worth around $258,837, marking a significant increase in ownership. Conversely, insider Cristal N. Downing sold 2,361 shares for $88.76 each, amounting to about $209,562. After the sale, Downing's direct ownership was reduced to 7,085 shares valued at approximately $628,865.

Company Insights on Merck & Co., Inc.

Merck & Co., Inc. is a healthcare company providing health solutions through a variety of products, including prescription medications, vaccines, biologic therapies, animal health products, and consumer care items. It operates through distinct segments, primarily focusing on pharmaceuticals, animal health, and other healthcare solutions.

Merck, Investments, Stocks