Zacks Investment Management Increases Stake in Merck & Co., Inc.

Zacks Investment Management has raised its investment in Merck & Co., Inc. (NYSE:MRK - Free Report) by 10.8% during the third quarter, as reported in its latest filing with the Securities and Exchange Commission. The firm now holds a total of 1,191,718 shares of Merck after acquiring an additional 115,880 shares during this period. Merck represents approximately 1.2% of Zacks Investment Management's overall portfolio, making it the firm’s 22nd largest stock position. At the conclusion of the most recent reporting period, the value of Zacks Investment Management’s holdings in Merck was estimated at $135,332,000.

Other notable institutional investors have also been active in buying and selling shares of Merck & Co., Inc. For example, China Universal Asset Management Co. Ltd. increased its stake in the company by 16.6% during the third quarter, acquiring 8,985 additional shares to reach a total of 63,101 shares, valued at approximately $7,211,000. Charles Schwab Investment Management Inc. also raised its holdings by 2.8%, currently owning 18,807,293 shares worth about $2,135,785,000 after adding 514,060 shares. Additionally, Thrivent Financial for Lutherans boosted its stake by 3.5%, now owning 1,837,354 shares valued at $208,649,000, and Captrust Financial Advisors increased their holdings by 3.3% to own 1,102,540 shares valued at $125,204,000. Crossmark Global Holdings Inc. made a significant investment as well, increasing its stake by 30.2%, bringing its total to 246,414 shares valued at $27,983,000. In total, 76.07% of Merck's shares are owned by hedge funds and other institutional investors.

Recent Analyst Ratings

Several brokerage firms have provided updates on Merck recently. Morgan Stanley has adjusted its target price from $130.00 to $123.00 and maintained an "equal weight" rating on the stock. Wells Fargo also lowered its target from $125.00 to $110.00, keeping an "equal weight" rating. Citigroup cut its target price from $140.00 to $130.00 while maintaining a "buy" rating. On the other hand, HSBC upgraded its assessment from a "hold" to a "buy" and set a target price of $130.00. Truist Financial has decreased its price objective for Merck from $132.00 to $130.00, reiterating a "buy" rating. To date, the stock has been rated with one sell recommendation, six holds, eleven buys, and four strong buys, earning an average rating of "Moderate Buy" with an average price target of $130.80 according to MarketBeat.com.

Current Performance of Merck & Co., Inc.

As of this Friday, Merck's stock was trading at $103.07. The company has seen a 52-week low of $94.48 and a high of $134.63, and currently boasts a market capitalization of $260.73 billion. The price-to-earnings ratio stands at 21.61, its PEG ratio is 1.46, and it has a beta of 0.39. Financial ratios reveal a debt-to-equity ratio of 0.79, a quick ratio of 1.15, and a current ratio of 1.36. The stock's 50-day moving average is $104.52, while the 200-day moving average is $116.16.

Recent Earnings Announcement and Dividend Increase

Merck recently released its quarterly earnings report on October 31st, announcing earnings of $1.57 per share. This exceeded analysts' expectations of $1.50 by a margin of $0.07. The company reported a return on equity of 36.42% and a net margin of 19.23%, with revenue recorded at $16.66 billion for the quarter, surpassing estimates of $16.47 billion. This revenue marked a year-over-year increase of 4.4%. Analysts estimate that Merck will achieve earnings of 7.73 per share for the current fiscal year. Furthermore, Merck also announced an increase in its quarterly dividend. The upcoming dividend of $0.81 will be paid on January 8th, with the record date set for December 16th. This translates to an annualized dividend of $3.24 and a yield of 3.14%, improving from the previous quarterly dividend of $0.77. Merck’s current dividend payout ratio stands at 64.57%.

About Merck & Co., Inc.

Merck & Co., Inc. operates globally as a healthcare company, divided into two primary segments: Pharmaceutical and Animal Health. The Pharmaceutical segment specializes in a variety of health products in oncology, acute care, immunology, neuroscience, virology, cardiovascular provisions, and diabetes, under renowned brands like Keytruda, Bridion, and Januvia. They also manufacture vaccines for preventive care.

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