OMERS Boosts Stake in Merck as Institutional Investors Rally

OMERS ADMINISTRATION Corp has increased its investment in Merck & Co., Inc. (NYSE:MRK) by 5.4% during the second quarter of 2023. This decision reflects a broader trend among institutional investors adjusting their holdings in the pharmaceutical giant. Following the acquisition of an additional 13,764 shares, OMERS now holds a total of 270,845 shares, valued at approximately $21,440,000 at the end of June.

Several other institutional investors have also modified their positions in Merck. Capital Counsel LLC NY raised its stake by 1.8%, bringing its total to 63,228 shares, worth $5,005,000. Fisher Asset Management LLC increased its holdings by 2.3%, now owning 25,013,697 shares valued at $1,980,084,000 after purchasing an additional 567,900 shares. Claret Asset Management Corp significantly boosted its stake by 567.3%, acquiring 44,357 shares to reach a total of 52,176 shares, valued at $4,130,000.

TradeLink Capital LLC entered a new position in Merck worth $950,000, while Edgestream Partners L.P. increased its stake by 16.7%, owning 35,207 shares valued at $2,787,000. Overall, institutional investors and hedge funds hold 76.07% of Merck’s stock.

Merck’s Financial Performance and Dividend Announcement

On Monday, shares of Merck opened at $104.63. The company reports a debt-to-equity ratio of 0.69, a current ratio of 1.42, and a quick ratio of 1.17. With a market capitalization of $259.69 billion, Merck has a price-to-earnings ratio of 16.12 and a price-to-earnings-growth ratio of 0.95. The stock’s moving averages indicate a 50-day average of $88.66 and a 200-day average of $83.81. Over the past year, shares have fluctuated between a low of $73.31 and a high of $105.84.

In addition to these investment changes, Merck also announced a quarterly dividend of $0.85 per share, set to be paid on January 8, 2024. Shareholders on record as of December 15, 2023, will receive this dividend, representing an increase from the previous quarterly dividend of $0.81. The annualized dividend totals $3.40, reflecting a yield of 3.2%. Currently, Merck’s dividend payout ratio stands at 44.91%.

Analyst Ratings and Insider Activity

Recent reports from equities analysts indicate a mixed outlook on Merck’s stock. Weiss Ratings reaffirmed a “hold” rating, while Wall Street Zen upgraded its rating from “hold” to “strong-buy.” Scotiabank initiated coverage with a “sector outperform” rating and a price target of $105.00. Meanwhile, Wells Fargo & Company increased its rating from “equal weight” to “overweight,” raising its price target from $90.00 to $125.00. Deutsche Bank Aktiengesellschaft also adjusted its price objective from $110.00 to $111.00 while maintaining a “hold” rating.

The consensus from investment analysts shows two ratings for “Strong Buy,” six for “Buy,” nine for “Hold,” and one for “Sell.” According to MarketBeat.com data, Merck’s stock holds an average rating of “Moderate Buy” with a target price of $107.06.

In related news, Merck’s Executive Vice President, David Michael Williams, sold 8,614 shares of the company’s stock on November 3, 2023, at an average price of $83.59. This sale, totaling approximately $720,044, reduced his holdings to 24,578 shares, valued at about $2,054,475, indicating a 25.95% decrease in his position.

Merck & Co., Inc. continues to be a key player in the healthcare sector, providing essential health solutions through its diverse range of prescription medicines, vaccines, and animal health products. The company’s operations span several segments, including Pharmaceuticals, Animal Health, and Other health-related products.