Merck & Co. Inc. [NYSE: MRK] slipped around -1.21 points on Tuesday, while shares priced at $75.79 at the close of the session, down -1.57%. The company report on April 7, 2021 that Organon Announces Proposed Senior Notes Offering.
Merck (NYSE: MRK), known as MSD outside the United States and Canada, announced that Organon Finance 1 LLC plans to offer, subject to market conditions, euro-denominated senior secured notes due 2028, U.S. dollar-denominated senior secured notes due 2028 and U.S. dollar-denominated senior unsecured notes due 2031 (collectively, the “notes”), in connection with the previously announced spinoff of Organon & Co. (“Organon”) from Merck. As part of the spinoff, the notes will be assumed by Organon and a Dutch private limited company and wholly owned subsidiary of Organon which will act as co-issuer of the notes.
Organon intends to use the net proceeds from the notes offering, together with available cash on its balance sheet and borrowings under senior secured credit facilities which Organon anticipates entering into, to repay one or more intercompany loans or notes owed by Organon to a Merck affiliate and to pay fees and expenses related to the spinoff. The proceeds of the notes offering will be held in escrow until satisfaction of the conditions precedent to the spinoff and certain other escrow release conditions.
Merck & Co. Inc. stock is now -7.35% down from its year-to-date (YTD) trading value. MRK Stock saw the intraday high of $76.94 and lowest of $75.64 per share. The company’s 52-week high price is 87.80, which means current price is +5.68% above from all time high which was touched on 01/11/21.
Compared to the average trading volume of 12.09M shares, MRK reached a trading volume of 12761996 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Merck & Co. Inc. [MRK]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for MRK shares is $96.10 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on MRK stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Bernstein have made an estimate for Merck & Co. Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on November 10, 2020. While these analysts kept the previous recommendation, Berenberg raised their target price to Hold. The new note on the price target was released on September 29, 2020, representing the official price target for Merck & Co. Inc. stock. Previously, the target price had yet another raise from $91 to $105, while Goldman kept a Buy rating on MRK stock.
The Average True Range (ATR) for Merck & Co. Inc. is set at 1.35, with the Price to Sales ratio for MRK stock in the period of the last 12 months amounting to 4.00. The Price to Book ratio for the last quarter was 7.57, with the Price to Cash per share for the same quarter was set at 3.19.
How has MRK stock performed recently?
Merck & Co. Inc. [MRK] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -3.21. With this latest performance, MRK shares gained by 3.64% in over the last four-week period, additionally sinking by -6.20% over the last 6 months – not to mention a drop of -0.60% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for MRK stock in for the last two-week period is set at 46.46, with the RSI for the last a single of trading hit 42.33, and the three-weeks RSI is set at 47.14 for Merck & Co. Inc. [MRK]. The present Moving Average for the last 50 days of trading for this stock 75.80, while it was recorded at 76.79 for the last single week of trading, and 79.71 for the last 200 days.
Merck & Co. Inc. [MRK]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Merck & Co. Inc. [MRK] shares currently have an operating margin of +26.16 and a Gross Margin at +73.77. Merck & Co. Inc.’s Net Margin is presently recorded at +14.72.
Return on Total Capital for MRK is now 22.39, given the latest momentum, and Return on Invested Capital for the company is 13.93. Return on Equity for this stock inclined to 27.59, with Return on Assets sitting at 8.03. When it comes to the capital structure of this company, Merck & Co. Inc. [MRK] has a Total Debt to Total Equity ratio set at 132.14. Additionally, MRK Total Debt to Total Capital is recorded at 56.92, with Total Debt to Total Assets ending up at 36.53. Long-Term Debt to Equity for the company is recorded at 105.55, with the Long-Term Debt to Total Capital now at 45.47.
Reflecting on the efficiency of the workforce at the company, Merck & Co. Inc. [MRK] managed to generate an average of $95,500 per employee. Receivables Turnover for the company is 6.56 with a Total Asset Turnover recorded at a value of 0.55.Merck & Co. Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.80 and a Current Ratio set at 1.00.
Earnings analysis for Merck & Co. Inc. [MRK]
With the latest financial reports released by the company, Merck & Co. Inc. posted 1.5/share EPS, while the average EPS was predicted by analysts to be reported at 1.34/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 11.90%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for MRK. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Merck & Co. Inc. go to 8.70%.
Insider trade positions for Merck & Co. Inc. [MRK]
There are presently around $141,851 million, or 75.70% of MRK stock, in the hands of institutional investors. The top three institutional holders of MRK stocks are: VANGUARD GROUP INC with ownership of 208,410,644, which is approximately -0.693% of the company’s market cap and around 0.10% of the total institutional ownership; BLACKROCK INC., holding 195,017,904 shares of the stock with an approximate value of $14.78 billion in MRK stocks shares; and STATE STREET CORP, currently with $8.65 billion in MRK stock with ownership of nearly -2.459% of the company’s market capitalization.
Positions in Merck & Co. Inc. stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 1,499 institutional holders increased their position in Merck & Co. Inc. [NYSE:MRK] by around 80,119,740 shares. Additionally, 1,022 investors decreased positions by around 89,821,599 shares, while 284 investors held positions by with 1,701,688,178 shares. The mentioned changes placed institutional holdings at 1,871,629,517 shares, according to the latest SEC report filing. MRK stock had 275 new institutional investments in for a total of 7,926,076 shares, while 116 institutional investors sold positions of 5,677,364 shares during the same period.