Organon & Co. (OGN) Shares: Are They Risky Or Cheap?

Organon & Co. (NYSE:OGN) finished Friday with an addition of $0.25 to close at $21.86, an upside of 1.16 percent. An average of 1,256,600 shares of common stock have been traded in the last five days. There was a fall of -$0.63 in the past week, and it reached a new high 6 times over the past 12 months. The last 20 days have seen an average of 2,296,765 shares traded, while the 50-day average volume stands at 2,110,406.

OGN stock has decreased by -0.09% in the last month. The company shares reached their 1-month lowest point of $21.28 on 08/02/23. With the stock rallying to its 52-week high on 01/18/23, shares of the company touched a low of $18.87 and a high of $32.43 in 52 weeks. It has reached a new high 10 times so far this year and lost -21.73% or -$6.07 in price. In spite of this, the price is down -32.59% from the 52-week high.

Top 5 AI Stocks to Buy for 2023

The artificial intelligence (AI) revolution is already here. And it's about to change everything we know about everything. According to Grand View Research, the global AI boom could grow from about $137 billion in 2022 to more than $1.81 trillion by 2030. And investors like you always want to get in on the hottest stocks of tomorrow. Here are five of the best ways to profit from the AI boom.

Click Here to Download the FREE Report.

Sponsored

Valuation Metrics

Organon & Co. (OGN) has a trailing price-to-earnings (P/E) ratio of 7.41. The stock’s beta is 0.75. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.90, and the price-to-cash flow ratio at 14.86.

Financial Health

The quick ratio of Organon & Co. for the three months ended June 29 was 1.20, and the current ratio was 1.70, indicating that the company is able to meet its debt obligations. Organon & Co.’s EBITDA margin for the year ending June 29 is 31.28%, while its operating margin for the same period stands at 14.30%. Its gross profit as reported stood at $3.88 billion compared to revenue of $6.17 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, Organon & Co.’s return on assets was 7.00%.

Earnings Surprise

For the three-month period that ended June 29, Organon & Co. had $8.72 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $242.0 million in the quarter, while revenues were grew 3.31%. The analyst consensus anticipated Organon & Co.’s latest quarter earnings to come in at $1.01 per share, but it turned out to be $1.31, a 29.70% surprise. For the quarter, EBITDA amounted to $446.0 million. Shareholders own equity worth $255.57 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Organon & Co. (OGN) price momentum. RSI 9-day as of the close on 25 August was 42.34%, suggesting the stock is Neutral, with historical volatility in this time frame at 15.95%.

As of today, OGN’s price is $21.99 -2.80% or -$0.63 from its 5-day moving average. OGN is currently trading -1.44% lower than its 20-day SMA and -7.10% lower than its 100-day SMA. However, the stock’s current price level is +7.74% above the SMA50 and -8.92% below the SMA200.

The stochastic %K and %D were 12.52% and 19.81%, respectively, and the average true range (ATR) was 0.54. With the 14-day stochastic at 13.79% and the average true range at 0.56, the RSI (14) stands at 47.35%. The stock has reached -0.54 on the 9-day MACD Oscillator while the 14-day reading was at -0.90.

Analyst Ratings

Raymond James launched coverage on Organon & Co. (NYSE: OGN) in its analyst report released on March 16, 2023. The firm assigned the stock an Outperform rating. The consensus rating for Organon & Co. (OGN) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell OGN, while 4 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 3 others rate it as a “buy”.

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

Analysts predict a range of price targets between $23.00 and $43.00, with a median target of $27.00. Taking a look at these predictions, the average price target given by analysts for Organon & Co. (OGN) stock is $30.00.

Most Popular

Related Posts