1834 Investment Advisors Increases Stake in Merck & Co. by 10.1%
Investment firm 1834 Investment Advisors Co. has increased its stake in Merck & Co., Inc. by 10.1% during the second quarter, according to a recent filing with the Securities & Exchange Commission. The firm now owns 77,194 shares of Merck’s stock, valued at approximately $6.1 million, following the acquisition of an additional 7,088 shares during this period.
A range of other institutional investors have also adjusted their positions in Merck, reflecting growing confidence in the company. For instance, Little House Capital LLC raised its stake by 1.2%, bringing its total to 25,236 shares, worth about $1.998 million. Similarly, Semus Wealth Partners LLC increased its holdings by 8.2%, now owning 5,039 shares valued at $452,000.
Major Increases in Shareholder Stakes
Other notable changes include Longfellow Investment Management Co. LLC, which boosted its stake by 20.4%, acquiring 19,376 shares worth $1.739 million. Quilter Plc also increased its holdings by 5.6%, now owning 1,180,797 shares valued at approximately $105.988 million. Furthermore, Simplicity Wealth LLC made a significant leap, raising its stake by an extraordinary 991.7%, resulting in ownership of 33,394 shares worth nearly $2.997 million.
Overall, institutional investors and hedge funds now own 76.07% of Merck’s outstanding shares, indicating strong institutional confidence in the company.
Stock Performance and Dividend Announcement
On October 6, 2023, Merck shares opened at $78.51. The company boasts a market capitalization of approximately $196.1 billion, with a price-to-earnings (P/E) ratio of 12.10 and a PEG ratio of 0.80. Merck’s stock has fluctuated between a one-year low of $73.31 and a high of $114.79. The company’s quick ratio stands at 1.17, while the current ratio is 1.42.
In a recent announcement, Merck disclosed a quarterly dividend of $0.81 per share, payable on October 7, 2023. Shareholders of record as of September 15, 2023 will receive this dividend, which translates to an annualized payment of $3.24 and a yield of 4.1%. The company’s dividend payout ratio is 49.92%.
Analyst Ratings and Price Targets
Several analysts have recently revised their ratings and price targets for Merck. Berenberg Bank downgraded the stock from a “buy” to a “hold” and lowered their price target from $100.00 to $90.00 on September 17, 2023. Wells Fargo & Company also adjusted its price target from $97.00 to $90.00, maintaining an “equal weight” rating. In a similar move, Morgan Stanley set its price target at $98.00, down from $99.00.
Currently, one analyst rates Merck as a Strong Buy, six as Buy, thirteen as Hold, and one as Sell. According to MarketBeat.com, the consensus rating is “Hold,” with an average target price of $106.41.
Merck & Co., Inc. operates as a global healthcare company, providing health solutions through its range of prescription medicines, vaccines, biologic therapies, and consumer care products. The company segments include Pharmaceutical, Animal Health, and Other, with a strong focus on human health pharmaceutical and vaccine products.
