Analysts’ Views On Merck & Co. Inc. (MRK)

Merck & Co. Inc. (NYSE:MRK) finished Tuesday with a subtraction of -$1.5 to close at $81.60, a downside of -1.81 percent. An average of 43,466,777 shares of common stock have been traded in the last five days. There was a gain of $8.28 in the past week. The last 20 days have seen an average of 21,677,051 shares traded, while the 50-day average volume stands at 13,907,636.

MRK stock has increased by 5.62% in the last month. The company shares reached their 1-month lowest point of $70.89 on 09/17/21. With the stock rallying to its 52-week high on 01/11/21, shares of the company touched a low of $68.38 and a high of $84.56 in 52 weeks. In spite of this, the price is down -3.50% from the 52-week high.


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Insider Transactions

149 days have passed since Merck & Co. Inc. (MRK) last reported insider trading activity. Clyburn Frank, who is EVP & Pres ? Human Health, most recently acquired $19,324 shares at $78.32 per share on May 10. In this transaction, the insider spent $1,513,440. Chairman, President & CEO, FRAZIER KENNETH C, disposed of 280,000 shares at a price of $81.42 on Nov 09. The insider now owns more than $22,797,011 worth of shares.

Valuation Metrics

Merck & Co. Inc. (MRK) has a trailing price-to-earnings (P/E) ratio of 43.20, which compares with the 23.00 for the broader industry and 31.87 for the sector. This means investors are optimistic about the stock’s future prospects. In the last five years, Merck & Co. Inc.’s PE ratio has ranged between 127.73 and 16.64. The stock’s beta is 0.42. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.05, the price-to-book (PB) ratio at 6.21.

Merck & Co. Inc. will next go ex-dividend on 15-Dec. The next dividend payment Merck & Co. Inc. will make is expected to be $0.65.

The quick ratio of Merck & Co. Inc. for the three months ended June 29 was 1.10, and the current ratio was 1.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.72 and a total debt to equity ratio of 0.80 for the quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 68.30% against a 5-year average of 67.6%. Merck & Co. Inc.’s EBITDA margin for the year ending June 29 is 33.71%, while its operating margin for the same period stands at 10.60%. Its gross profit as reported stood at $32.51 billion compared to revenue of $47.99 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Merck & Co. Inc.’s return on assets was 6.10%, compared to 6.7% over the last five years. In the past year, the return on investment has been 10.80%, and the 5-year average is 11.2%. Meanwhile, the return on equity (ROE) for the past 12 months has been 19.40% and the 5-year average holds at 20.2%. For the broader industry, ROE averaged -15.50 over the past year.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Merck & Co. Inc. (MRK) price momentum. RSI 9-day as of the close on 05 October was 76.25%, suggesting the stock is Overbought, with historical volatility in this time frame at 40.56%.

As of today, MRK’s price is $79.26 +11.29% or $8.28 from its 5-day moving average. MRK is currently trading +7.40% higher than its 20-day SMA and +3.70% higher than its 100-day SMA. However, the stock’s current price level is +5.64% above the SMA50 and +2.23% above the SMA200.

The stochastic %K and %D were 81.94% and 80.58%, respectively, and the average true range (ATR) was 2.31. With the 14-day stochastic at 78.35% and the average true range at 1.95, the RSI (14) stands at 71.31%. The stock has reached 5.41 on the 9-day MACD Oscillator while the 14-day reading was at 7.09.

Analyst Ratings

Morgan Stanley downgraded Merck & Co. Inc. (NYSE: MRK) to a an Equal-weight rating in its most recent analyst report. Previously, the stock was rated as a an Overweight.The consensus rating for Merck & Co. Inc. (MRK) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell MRK, while 6 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 4 analysts, while 11 others rate it as a “buy”.

What is MRK’s price target for the next 12 months?

Analysts predict a range of price targets between $80.00 and $107.00, with a median target of $93.50. Taking a look at these predictions, the average price target given by analysts for Merck & Co. Inc. (MRK) stock is $94.00.

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