Traders Buy Large Volume of Call Options on Merck & Co., Inc. (NYSE:MRK)

Merck & Co., Inc. (NYSE:MRK) saw some unusual options trading on Monday. Investors bought 74,214 call options on the company. This is an increase of 112% compared to the typical volume of 34,994 call options.

Merck & Co., Inc. Stock Up 1.0 %

Shares of MRK stock traded up $0.97 during trading on Monday, reaching $99.79. The company’s stock had a trading volume of 13,321,827 shares, compared to its average volume of 11,097,958. Merck & Co., Inc. has a one year low of $94.48 and a one year high of $134.63. The business has a fifty day moving average price of $99.83 and a 200-day moving average price of $107.54. The company has a market cap of $252.42 billion, a price-to-earnings ratio of 20.92, a price-to-earnings-growth ratio of 1.20 and a beta of 0.38. The company has a quick ratio of 1.15, a current ratio of 1.36 and a debt-to-equity ratio of 0.79.

Merck & Co., Inc. (NYSE:MRK) last issued its quarterly earnings results on Thursday, October 31st. The company reported $1.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.50 by $0.07. Merck & Co., Inc. had a net margin of 19.23% and a return on equity of 36.42%. The firm had revenue of $16.66 billion for the quarter, compared to analyst estimates of $16.47 billion. During the same period in the previous year, the business earned $2.13 EPS. The company’s revenue was up 4.4% compared to the same quarter last year. Analysts anticipate that Merck & Co., Inc. will post 7.62 earnings per share for the current year.

Merck & Co., Inc. Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, April 7th. Investors of record on Monday, March 17th will be given a $0.81 dividend. This represents a $3.24 dividend on an annualized basis and a dividend yield of 3.25%. The ex-dividend date is Monday, March 17th. Merck & Co., Inc.’s dividend payout ratio is currently 67.92%.

Merck & Co., Inc. declared that its Board of Directors has approved a stock repurchase plan on Tuesday, January 28th that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the company to purchase up to 4.1% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board believes its stock is undervalued.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Financial Life Planners bought a new position in Merck & Co., Inc. during the fourth quarter worth about $28,000. Darwin Wealth Management LLC acquired a new stake in shares of Merck & Co., Inc. in the third quarter valued at approximately $32,000. AM Squared Ltd acquired a new stake in shares of Merck & Co., Inc. in the third quarter valued at approximately $34,000. Safe Harbor Fiduciary LLC bought a new position in shares of Merck & Co., Inc. during the 3rd quarter worth approximately $34,000. Finally, Peterson Financial Group Inc. acquired a new position in shares of Merck & Co., Inc. during the 3rd quarter worth approximately $36,000. 76.07% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several equities research analysts have weighed in on the stock. HSBC upgraded shares of Merck & Co., Inc. from a “hold” rating to a “buy” rating and set a $130.00 target price on the stock in a report on Wednesday, December 4th. BMO Capital Markets downgraded Merck & Co., Inc. from an “outperform” rating to a “market perform” rating and dropped their price objective for the stock from $136.00 to $105.00 in a research note on Friday, December 20th. Daiwa Capital Markets lowered Merck & Co., Inc. from a “buy” rating to a “neutral” rating in a report on Monday, November 11th. Guggenheim lowered their price target on Merck & Co., Inc. from $137.00 to $130.00 and set a “buy” rating for the company in a report on Wednesday, November 6th. Finally, Barclays dropped their price target on Merck & Co., Inc. from $142.00 to $140.00 and set an “overweight” rating on the stock in a research report on Monday, October 7th. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating, nine have issued a buy rating and three have assigned a strong buy rating to the company. According to MarketBeat.com, Merck & Co., Inc. currently has a consensus rating of “Moderate Buy” and a consensus target price of $122.67.

Merck & Co., Inc. Company Profile

Merck & Co, Inc is a health care company, which engages in the provision of health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. It operates through the following segments: Pharmaceutical, Animal Health, and Other. The Pharmaceutical segment includes human health pharmaceutical and vaccine products.