Cadinha & Co. LLC Reduces Stake in Merck & Co., Inc.

Cadinha & Co. LLC has significantly reduced its investment in Merck & Co., Inc. (NYSE:MRK) by an impressive 85.6% during the fourth quarter. According to their most recent filing with the Securities and Exchange Commission, the firm sold 129,532 shares, leaving them with a total of 21,838 shares at the end of the quarter. This adjustment brings the value of their Merck holdings to approximately $2,172,000.

Recent Changes by Other Investors

In addition to Cadinha & Co. LLC, other notable institutional investors have also adjusted their positions in Merck. For instance, State Street Corp increased its stake by 1.3% in the previous quarter, now owning around 119,026,412 shares valued at about $13.6 billion after buying an additional 1,536,474 shares. Similarly, Wellington Management Group LLP has grown its holdings by 4.6% and currently owns about 75,809,383 shares, valued at approximately $8.6 billion after acquiring an extra 3,327,404 shares. Geode Capital Management LLC raised its stake by 3.7% during the same period, while Charles Schwab Investment Management Inc. and UBS Asset Management Americas LLC also incremented their positions by 2.8% and 1.8%, respectively. Collectively, approximately 76.07% of Merck’s stock is held by institutional investors.

Analysts' Predictions for Merck

Analysts have recently shared their views on Merck & Co. stock. Sanford C. Bernstein began covering the stock with a "market perform" rating and set a target price of $115.00. Wolfe Research followed suit with a "peer perform" rating. However, Leerink Partners downgraded their target from $136.00 to $119.00 while maintaining an "outperform" call. On the other hand, HSBC Global Research recently improved its rating from "hold" to a "strong buy." Currently, there is a mix of ratings on Merck, with some analysts suggesting a hold, while others favor a buy or strong buy option. The average rating for Merck is deemed as "Moderate Buy" with a consensus price target of $123.67.

Merck's Recent Stock Performance

On Friday, Merck shares opened at $98.00, marking a decline of 2.7%. The company’s stock has a 50-day moving average of $100.01 and a 200-day moving average of $109.85. In the past year, the stock hit a low of $94.48 and a high of $134.63. Merck currently holds a market capitalization of $247.91 billion, with a P/E ratio of 20.55.

Financial Results

Merck recently announced its earnings, revealing earnings of $1.57 per share for the latest quarter, surpassing the consensus estimate of $1.50. With a net margin of 19.23% and a return on equity of 36.42%, the company reported revenue of $16.66 billion, exceeding projections of $16.47 billion. This is a notable increase of 4.4% from last year's quarter.

Dividend Announcement

Furthermore, Merck announced an increase in its quarterly dividend recently. Shareholders received a dividend of $0.81 per share, a rise from the previous $0.77 per share. This translates to an annual dividend of $3.24, providing a yield of 3.31%, with a dividend payout ratio of 67.92%.

About Merck & Co., Inc.

Merck & Co., Inc. is a healthcare firm that offers a range of health solutions including prescription medications, vaccines, biologic therapies, and products for consumer care and animal health. The company operates through various segments, with a primary focus on pharmaceuticals and vaccines for human health.

Merck, investment, stocks