Merck & Co. Inc. [NYSE: MRK] plunged by -$0.03 during the normal trading session on Friday and reaching a high of $76.40 during the day while it closed the day at $75.89. The company report on May 28, 2021 that Organon Set to Join S&P 500; HollyFrontier to Join S&P MidCap 400; Service Properties Trust to Join S&P SmallCap 600.
Organon & Co. (NYSE: OGN) will be added to the S&P 500 prior to the open of trading on Thursday, June 3, replacing HollyFrontier, which will be removed from the S&P 500 effective prior to the open of trading on Friday, June 4.
HollyFrontier will replace Service Properties Trust (NASD:SVC) in the S&P MidCap 400, and Service Properties Trust will replace Lannett Co Inc. (NYSE:LCI) in the S&P SmallCap 600 also effective prior to the open on June 4. S&P 500 and 100 constituent Merck & Co (NYSE: MRK) is spinning off Organon (NYSE: OGN) in a transaction expected to be completed post close on Wednesday, June 2. Post spin-off, Merck will remain in the S&P 500 and 100 indices. HollyFrontier has a market capitalization more representative of the mid-cap market space. Lannett is no longer representative of the small-cap market space.
Merck & Co. Inc. stock has also loss -4.16% of its value over the past 7 days. However, MRK stock has inclined by 4.85% in the 3 months of the year. Over the past six months meanwhile, it has lost -5.21% and lost -7.22% year-on date.
The market cap for MRK stock reached $192.23 billion, with 2.53 billion shares outstanding and 2.53 billion shares in the current float. Compared to the average trading volume of 12.34M shares, MRK reached a trading volume of 13327170 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to 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 $94.39 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 2.00. 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.
Argus have made an estimate for Merck & Co. Inc. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on May 20, 2021. While these analysts kept the previous recommendation, RBC Capital Mkts raised their target price to Sector Perform. The new note on the price target was released on April 07, 2021, representing the official price target for Merck & Co. Inc. stock. Previously, the target price had yet another raise to $95, while Bernstein analysts kept a Outperform rating on MRK stock.
The Average True Range (ATR) for Merck & Co. Inc. is set at 1.27, 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 7.13. Price to Free Cash Flow for MRK in the course of the last twelve months was 980.79 with Quick ratio for the last quarter at 0.80.
MRK stock trade performance evaluation
Merck & Co. Inc. [MRK] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.16. With this latest performance, MRK shares gained by 3.00% in over the last four-week period, additionally sinking by -5.21% over the last 6 months – not to mention a drop of -5.98% 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 39.30, with the RSI for the last a single of trading hit 31.43, and the three-weeks RSI is set at 43.32 for Merck & Co. Inc. [MRK]. The present Moving Average for the last 50 days of trading for this stock 77.31, while it was recorded at 77.11 for the last single week of trading, and 79.44 for the last 200 days.
Merck & Co. Inc. [MRK]: An insightful look at the core 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 per share (EPS) analysis for Merck & Co. Inc. [MRK] stock
With the latest financial reports released by the company, Merck & Co. Inc. posted 1.37/share EPS, while the average EPS was predicted by analysts to be reported at 1.04/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 31.70%. 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 9.22%.
Merck & Co. Inc. [MRK]: Insider Ownership positions
There are presently around $141,103 million, or 75.30% of MRK stock, in the hands of institutional investors. The top three institutional holders of MRK stocks are: VANGUARD GROUP INC with ownership of 225,205,929, which is approximately 8.059% of the company’s market cap and around 0.10% of the total institutional ownership; BLACKROCK INC., holding 193,928,410 shares of the stock with an approximate value of $14.72 billion in MRK stocks shares; and STATE STREET CORP, currently with $8.55 billion in MRK stock with ownership of nearly -1.282% 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 1,419 institutional holders increased their position in Merck & Co. Inc. [NYSE:MRK] by around 93,093,000 shares. Additionally, 1,150 investors decreased positions by around 106,873,552 shares, while 268 investors held positions by with 1,659,343,405 shares. The mentioned changes placed institutional holdings at 1,859,309,957 shares, according to the latest SEC report filing. MRK stock had 142 new institutional investments in for a total of 6,362,528 shares, while 136 institutional investors sold positions of 6,860,482 shares during the same period.