Wayfinding Financial LLC Acquires Stake in Merck & Co., Inc.

Wayfinding Financial LLC has made a significant investment in Merck & Co., Inc. (NYSE:MRK - Free Report) by purchasing a new stake during the fourth quarter of the fiscal year. This information comes from the company’s latest 13F filing with the Securities & Exchange Commission. Wayfinding Financial acquired a total of 4,287 shares of Merck, with the total investment amounting to approximately $429,000.

In addition to Wayfinding Financial, several other institutional investors have also adjusted their holdings in Merck. For example, Bank of New York Mellon Corp increased its stake in Merck by 29.7% in the last quarter, now owning 24,213,537 shares worth about $2.41 billion. Similarly, Wellington Management Group LLP raised its position in Merck by 4.6%, bringing its total shares to 75,809,383, valued at around $8.61 billion after acquiring 3,327,404 additional shares.

Van ECK Associates Corp made a notable increase in their holdings, boosting their position by an impressive 748% in the fourth quarter, resulting in ownership of 3,149,841 shares worth approximately $313.35 million after purchasing an additional 2,778,388 shares. Moreover, Two Sigma Advisers LP expanded its stake by 157.9% during the third quarter, acquiring 2,610,800 shares to reach a total of 4,264,100 shares, valued at about $484.23 million. Lastly, Caisse DE Depot ET Placement DU Quebec raised its position by 68.7% during the same period, now holding 5,388,551 shares valued at around $611.92 million. Overall, institutional investors currently own about 76.07% of Merck's stock.

Recent Analyst Ratings

Recent analyses from several brokerages have provided updated perspectives on Merck. HSBC upgraded the company from a "hold" to a "buy" rating, setting a target price of $130.00. Conversely, BMO Capital Markets decreased their price target from $105.00 to $96.00 while maintaining a "market perform" rating. UBS Group also adjusted their target price from $125.00 to $120.00, upholding a "buy" rating. HSBC Global Research similarly upgraded Merck from a "hold" to a "strong-buy" rating.

TD Securities took a different approach and downgraded Merck from a "buy" to a "hold" rating, adjusting their target price down to $100.00 from $121.00. Collectively, eleven analysts have issued a hold rating, nine have given a buy rating, and three have assigned a strong buy rating to the stock, resulting in an average rating of "Moderate Buy" with a target price of $117.12, according to MarketBeat.com.

Insider Transactions

Additionally, some insider trading activities have been reported. Cristal N. Downing, an insider, sold 2,361 shares on February 6th at an average price of $88.76, totaling approximately $209,562. Following this sale, Downing now holds 7,085 shares valued at around $628,864. This transaction represented a 24.99% decrease in her position. On the other hand, Director Inge G. Thulin bought 2,833 shares on the same day for an average cost of $88.25 per share, amounting to $250,012.25. Thulin’s acquisition increased their holdings to 2,933 shares, valued at about $258,837. This was a substantial increase of 2,833.00% in their position. The information regarding these transactions is disclosed in filings with the SEC.

Market Performance

As of Friday, Merck shares opened at $94.72, with a 12-month low of $81.04 and a high of $134.63. The company’s market capitalization stands at approximately $239.26 billion, with a price-to-earnings ratio of 14.07. Merck reported a quarterly revenue of $15.62 billion, surpassing analysts' expectations, yet the reported EPS missed consensus estimates. Analysts project Merck will deliver 9.01 earnings per share for the current fiscal year.

Dividend Announcement

Recently, Merck announced a quarterly dividend set to be paid on April 7th. Investors on record by March 17th will receive a dividend payment of $0.81 per share, reflecting an annualized dividend of $3.24 and a yield of 3.42%. The company’s payout ratio is approximately 48.14%. Moreover, Merck's board initiated a stock buyback plan allowing the purchase of up to $10.00 billion in shares, indicating the board's belief that the stock is undervalued.

About Merck & Co., Inc.

Merck & Co., Inc. is a health care company dedicated to providing comprehensive health solutions, including prescription medications, vaccines, biologic therapies, animal health products, and consumer care. The company’s operations are divided into segments: Pharmaceutical, Animal Health, and Other, with a focus on human health pharmaceutical and vaccine products.

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