Quadrature Capital Reduces Merck Holdings by 87.8% Amid Market Shifts

Quadrature Capital Ltd significantly reduced its holdings in Merck & Co., Inc. by 87.8% during the second quarter of 2023, as detailed in its latest 13F filing with the United States Securities and Exchange Commission. The institutional investor now owns 18,537 shares of Merck after selling 133,728 shares, bringing the total value of its remaining investment to approximately $1,466,000.

Several other institutional investors have also adjusted their positions in Merck recently. For instance, Brighton Jones LLC increased its holdings by 29.5% in the fourth quarter, acquiring an additional 8,710 shares to reach a total of 38,278 shares, valued at $3,808,000. Similarly, Baker Avenue Asset Management LP enhanced its stake by 12.0% during the first quarter, now owning 13,861 shares worth $1,244,000 after purchasing an additional 1,490 shares.

Another notable adjustment came from IFG Advisory LLC, which grew its position by 2.2% to own 19,804 shares, valued at $1,778,000, following a purchase of 422 shares. United Super Pty Ltd also entered the market by acquiring a new position worth around $341,000 in the first quarter. Liberty Wealth Management LLC made a substantial move, increasing its holdings by 1,617.5%, resulting in ownership of 59,065 shares valued at $5,302,000 after acquiring 55,626 shares.

Currently, institutional investors hold 76.07% of Merck’s stock, reflecting a significant trend in investment activity surrounding the company.

Merck’s Financial Performance and Dividend Announcement

On Monday, Merck & Co., Inc. shares opened at $104.63. The company boasts a market capitalization of $259.69 billion, a price-to-earnings (P/E) ratio of 16.12, and a P/E growth (P/E/G) ratio of 0.95. Merck’s financial health is further illustrated by a quick ratio of 1.17, a current ratio of 1.42, and a debt-to-equity ratio of 0.69. The stock has shown resilience, with a 52-week high of $105.84 and a low of $73.31.

In a positive move for shareholders, Merck recently announced an increase in its quarterly dividend, which will be distributed on January 8, 2024. Shareholders on record as of December 15, 2023 will receive $0.85 per share, marking an annualized dividend of $3.40 and a yield of 3.2%. This increase from the previous dividend of $0.81 reflects the company’s commitment to returning value to its investors, with a current dividend payout ratio of 44.91%.

Analysts’ Perspectives and Insider Trades

Recent analyses of Merck’s stock have produced varied opinions. Weiss Ratings reaffirmed a “hold” rating, while Deutsche Bank Aktiengesellschaft raised its price target from $110.00 to $111.00, maintaining a “hold” rating. Wall Street Zen upgraded Merck from a “hold” to a “strong-buy” rating, reflecting growing confidence among analysts. Wells Fargo & Company also elevated its rating from “equal weight” to “overweight” with a new target of $125.00. Berenberg Bank, however, downgraded the stock from “buy” to “hold,” reducing its price target from $100.00 to $90.00.

The consensus among analysts indicates a “Moderate Buy” rating, with an average target price of $107.06.

In insider trading news, David Michael Williams, Executive Vice President of Merck, sold 8,614 shares on November 3 at an average price of $83.59, totaling about $720,044.26. Following this transaction, Williams holds 24,578 shares valued at approximately $2,054,475.02, representing a 25.95% decrease in his position.

Merck & Co., Inc. continues to be a key player in the healthcare sector, providing a range of health solutions through its pharmaceuticals, vaccines, and consumer care products. With ongoing adjustments in institutional holdings and a focus on shareholder returns, the company’s future performance will be closely monitored by analysts and investors alike.