17 Capital Partners LLC has increased its holdings in Merck & Co., Inc. (NYSE: MRK) by 13.9% during the second quarter of 2023. According to a recent filing with the Securities & Exchange Commission, the fund now owns 7,635 shares of Merck’s stock, having acquired an additional 930 shares during this period. The total value of their investment in Merck is approximately $604,000.
Several other institutional investors have also made adjustments to their positions in Merck. Notably, Winnow Wealth LLC initiated a new position valued at around $45,000 during the same quarter. Meanwhile, NFP Retirement Inc. increased its holdings by 5.1%, bringing their total to 7,230 shares, valued at $572,000. Additionally, Ensign Peak Advisors Inc. boosted its stake by 20.5%, now owning over 3.15 million shares worth $249.49 million.
Insider Transactions and Market Performance
In other news, Merck’s Executive Vice President, David Michael Williams, sold 8,614 shares on November 3, 2023, at an average price of $83.59, totaling approximately $720,044.26. Following this transaction, Williams’ remaining shares are valued at about $2.05 million, marking a 25.95% decrease in his holdings. Currently, insiders hold 0.13% of Merck’s stock.
On the trading front, shares of Merck opened at $95.16 on Thursday, reflecting a 1.3% decrease. The company’s financial indicators 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’s stock has fluctuated between a low of $73.31 and a high of $105.07. As of now, the company boasts a market capitalization of $236.20 billion and a price-to-earnings (P/E) ratio of 14.66.
Recent Earnings and Dividend Announcement
Merck reported its latest earnings results on October 30, 2023, posting earnings per share (EPS) of $2.58, surpassing analysts’ consensus estimate of $2.36 by $0.22. The company generated $17.28 billion in revenue, exceeding the expected $17 billion. This was a 3.7% increase in revenue year-over-year, compared to $1.57 EPS in the same quarter last year. Merck has also set its fiscal year 2025 EPS guidance between $8.930 and $8.980.
Looking ahead, Merck announced a quarterly dividend of $0.85, to be paid on January 8, 2025, to shareholders recorded by December 15, 2024. This reflects an annualized dividend of $3.40 and a yield of 3.6%, an increase from the previous quarterly dividend of $0.81. The company maintains a payout ratio of 42.80%.
Market analysts have provided varied assessments of Merck’s stock. Scotiabank recently issued a “sector outperform” rating with a price target of $105.00, while Morgan Stanley raised its target from $98.00 to $100.00. Conversely, Wells Fargo & Company lowered its price target from $97.00 to $90.00, assigning an “equal weight” rating. Overall, the consensus rating for Merck’s shares is currently a “Hold” with an average target price of $104.88.
Merck & Co., Inc. remains a key player in the healthcare sector, known for its extensive portfolio that includes prescription medicines, vaccines, and consumer care products. As it continues to navigate market dynamics, investor interest and institutional support appear robust.
