Bray Capital Advisors Reduces Stake in Merck & Co., Inc.

Bray Capital Advisors has reduced its investment in Merck & Co., Inc. (NYSE:MRK) by 15.4% during the fourth quarter, based on the latest filing with the Securities and Exchange Commission. After selling 6,091 shares, Bray Capital Advisors now holds a total of 33,515 shares of Merck's stock, which were valued at approximately $3,334,000 at the close of the most recent quarter.

Changes by Other Institutional Investors

Additionally, other institutional investors have also adjusted their positions in Merck & Co. Massachusetts Wealth Management increased its stake in the company by 0.4% in the third quarter, now owning 22,474 shares valued at $2,552,000 after purchasing 100 more shares. Shayne & Jacobs LLC raised its position by 1.8%, holding 5,611 shares valued at $637,000 after acquiring an additional 100 shares. Similarly, Alan B Lancz & Associates Inc. boosted its holdings by 0.7% in the third quarter, now owning 13,834 shares worth $1,571,000 after buying 100 extra shares.

First Bank & Trust expanded its stake by 1.1%, now possessing 8,995 shares valued at $1,021,000 after acquiring 101 shares in the latest quarter. Finally, Source Financial Advisors LLC increased its position by 3.3% during the third quarter, owning 3,185 shares valued at $362,000 after adding 101 shares. Overall, institutional investors hold 76.07% of Merck’s shares.

Analysts Offer Insights on Merck's Growth

Recent analyst reports have provided various insights on Merck’s stock. Leerink Partners downgraded their target price from $136.00 to $119.00 while maintaining an "outperform" rating. Daiwa America also lowered the rating from "strong-buy" to "hold". TD Cowen reduced their price objective from $121.00 to $100.00, and Truist Financial decreased their target from $130.00 to $110.00.

Finally, Deutsche Bank downgraded Merck from a "buy" to "hold" and set a new price target of $105.00, down from $128.00. Overall, the common consensus among analysts is a "Moderate Buy" with an average price target of $116.39, while one analyst has issued a "sell" rating, eleven have said "hold", nine have assigned a "buy" rating, and three have given a "strong buy" rating.

Merck’s Market Performance

As of the latest trading session, Merck's shares (NYSE: MRK) opened at $87.64 with a market capitalization of $221.70 billion. The company possesses a P/E ratio of 13.02 and a PEG ratio of 0.73. The stock has fluctuated within a twelve-month range of $81.04 and $134.63. Merck has a quick ratio of 1.15 and a current ratio of 1.36, along with a debt-to-equity ratio of 0.79. The 50-day moving average for the stock stands at $95.71, while the 200-day moving average is $104.37.

Recent Earnings Report

On February 4th, Merck & Co. announced its latest earnings results. The company reported earnings of $1.72 per share, falling short of analysts' expectations of $1.85 by $0.13. Merck's revenue for the quarter reached $15.62 billion, slightly surpassing the expected $15.51 billion, showing an annual revenue increase of 6.8% compared to the previous year.

Dividend Announcement

Merck & Co. recently declared a quarterly dividend, scheduled for payment on April 7th. Shareholders on record by March 17th will receive a dividend of $0.81. This translates to an annual dividend of $3.24 with a yield of 3.70%. The ex-dividend date is also March 17th. The company’s dividend payout ratio is noted at 48.14%.

Stock Buyback Program

The Board of Directors of Merck & Co. announced on January 28th a stock buyback program valued at $10.00 billion. This program allows the company to repurchase up to 4.1% of its shares, a move that suggests confidence in the stock’s current valuation being understated.

Insider Transactions

In recent insider trading activity, Cristal N. Downing sold 2,361 shares of Merck on February 6th for approximately $209,562 at an average price of $88.76 per share, marking a decrease in her ownership. Conversely, Director Inge G. Thulin purchased 2,833 shares in the same period at an average price of $88.25, indicating a significant increase in his stake in the company.

Company Overview

Merck & Co., Inc. is a healthcare organization that focuses on delivering health solutions via its range of prescription medications, vaccines, biologic therapies, animal health products, and consumer care items. The company operates in several segments, primarily the Pharmaceutical segment, which encompasses human health pharmaceutical products and vaccines.

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