Merck & Co., Inc. (NYSE:MRK) Sees Significant Increase in Short Interest

Merck & Co., Inc. (NYSE:MRK) was the target of a large growth in short interest in the month of February. As of February 28th, there was short interest totalling 40,940,000 shares, a growth of 27.1% from the February 13th total of 32,210,000 shares. Approximately 1.6% of the company’s shares are short sold. Based on an average daily trading volume, of 14,400,000 shares, the days-to-cover ratio is presently 2.8 days.

Merck & Co., Inc. Trading Down 0.1 %

Shares of NYSE:MRK opened at $94.69 on Wednesday. Merck & Co., Inc. has a 52-week low of $81.04 and a 52-week high of $134.63. The company has a market capitalization of $239.18 billion, a P/E ratio of 14.07, a price-to-earnings-growth ratio of 0.77 and a beta of 0.35. The company has a 50-day simple moving average of $93.34 and a 200 day simple moving average of $101.45. The company has a debt-to-equity ratio of 0.79, a quick ratio of 1.15 and a current ratio of 1.36.

Merck & Co., Inc. (NYSE:MRK) last issued its earnings results on Tuesday, February 4th. 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 26.67% and a return on equity of 45.35%. The firm had revenue of $15.62 billion during the quarter, compared to analyst estimates of $15.51 billion. During the same quarter last year, the business posted $0.03 earnings per share. The company’s revenue for the quarter was up 6.8% on a year-over-year basis. Sell-side analysts forecast that Merck & Co., Inc. will post 9.01 earnings per share for the current year.

Merck & Co., Inc. Announces Dividend

The business also recently disclosed 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 annualized dividend and a yield of 3.42%. Merck & Co., Inc.’s dividend payout ratio (DPR) is presently 48.14%.

Merck & Co., Inc. announced that its Board of Directors has initiated a stock buyback program on Tuesday, January 28th that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the company to repurchase up to 4.1% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling

In related news, insider Cristal N. Downing sold 2,361 shares of the firm’s stock in a transaction on Thursday, February 6th. The stock was sold at an average price of $88.76, for a total transaction of $209,562.36. Following the sale, the insider now owns 7,085 shares of the company’s stock, valued at approximately $628,864.60. This trade represents a 24.99 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Inge G. Thulin acquired 2,833 shares of the company’s stock in a transaction that occurred on Thursday, February 6th. The shares were acquired at an average cost of $88.25 per share, for a total transaction of $250,012.25. Following the purchase, the director now directly owns 2,933 shares in the company, valued at $258,837.25. This trade represents a 2,833.00 % increase in their position. The disclosure for this purchase can be found here. 0.09% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Merck & Co., Inc.

Hedge funds have recently bought and sold shares of the stock. Midwest Capital Advisors LLC acquired a new stake in Merck & Co., Inc. during the fourth quarter worth approximately $26,000. Darwin Wealth Management LLC acquired a new stake in Merck & Co., Inc. during the third quarter worth approximately $32,000. Financial Life Planners acquired a new stake in Merck & Co., Inc. during the fourth quarter worth approximately $28,000. Noble Wealth Management PBC acquired a new stake in Merck & Co., Inc. during the fourth quarter worth approximately $28,000. Finally, Halbert Hargrove Global Advisors LLC acquired a new stake in Merck & Co., Inc. during the fourth quarter worth approximately $28,000. 76.07% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities analysts have issued reports on the company. Hsbc Global Res upgraded Merck & Co., Inc. from a “hold” rating to a “strong-buy” rating in a report on Wednesday, December 4th. HSBC upgraded Merck & Co., Inc. from a “hold” rating to a “buy” rating and set a $130.00 target price for the company in a report on Wednesday, December 4th. Citigroup lowered their target price on Merck & Co., Inc. from $125.00 to $115.00 and set a “buy” rating for the company in a report on Wednesday, February 5th. Guggenheim lowered their target price on Merck & Co., Inc. from $122.00 to $115.00 and set a “buy” rating for the company in a report on Wednesday, February 12th. Finally, UBS Group lowered their target price on Merck & Co., Inc. from $125.00 to $120.00 and set a “buy” rating for the company in a report on Wednesday, January 8th. Eleven analysts have rated the stock with a hold rating, nine have given a buy rating and three have given a strong buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $117.12.

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.