MRK last reported earnings on February 01, 2019 when it released Dec-18 results that exceeded expectations. The company raked in $1.04 per share, 70.49% change on the same period last year. That was better than consensus for $1.03. Revenue for the recent quarter stood at $11 billion, up 5% on last year and below the $10.99 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $10.08 billion to $10.69 billion, which should be compared with $10.05 billion generated last year. EPS is seen in a range of $0.98 to $1.11, against the $1 reported a year ago.
MRK’s 50 day simple moving average (SMA 50) price is $75.67 and its 200-day simple moving average (SMA 200) price is $68.65. The company’s stock currently has a total float of 2.6B shares. Its weekly volatility is hovering around 1.58% and felt 1.78% volatility in price over a month. On the upside, the share price will test short term resistance at around $77.63. On a downside, the stock is likely to find some support, which begins at $76. The failure to get near-term support could push it to $75.29.
Separately, it has been reported that multiple insider activity took place at Merck & Co., Inc. (MRK). Director Brun Leslie A sold 3,052 shares for $1,948 in transaction occurred on 2019/02/08. After making this transaction, the Director owns a direct stake of 235,675 shares, worth $149,431, as per the last closing price. On 2019/02/05 Frazier Kenneth C, Chairman, President & CEO at MRK, dumped 231,566 shares at an average price of $78.08 per share. The selling total is valued at $53,387,092.
Director, Glocer Thomas H had divested 10,000 shares for $5,100 through a trade on 2019/02/04. Following this activity, the insider holds 759,600 shares worth $391,221 as of recent close. Wall Street’s most bullish Merck & Co., Inc. (NYSE:MRK) analysts are predicting the share price to blow past $95 per share during the next 12 months. The current median share price forecast by them is $84, suggesting that the stock could increase 9.5% in that time frame. The average price target of $84.75 calls for a nearly 10.48% increase in the stock price.
It had seen a change in price target from analysts at Citigroup, who reiterated the stock at Buy on October 16 but moved PT from $70 to $79. Analysts at Guggenheim, started covering the stock on October 09 with a Buy rating. The stock won favor of Goldman analysts who expressed their confidence in it using an upgrade from Neutral to Buy on April 23.
When looking at valuations, Merck & Co., Inc. (MRK) has a pricey P/E of 32.97x as compared to industry average of 32.17x. Moreover, it trades for 14.68 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 6.3x price/book and 4.83x price/sales. Compared to others, Merck & Co., Inc. is in a different league with regards to profitability, having net margins of 3.2%. To put some perspective around this, the industry’s average net margin is 5.98%. MRK’s ROE is 4%, which is also considerably worse than the industry’s ROE of 14.33%. It’s also very liquid in the near term, with a current ratio of 1.4. The stock has a debt/capital of 0.73.
Merck & Co., Inc. (NYSE:MRK) recently claimed $204.2B as the price has approached $76.71. There came a -1.04% decline with the closing bell on Monday. The stock remained range bound between $76.21 and $77.84. Trading activity significantly weakened as the volume at ready counter decreased to 12,684,427 shares versus 13,114,735 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 13,198,222 shares. The stock is now 45.2% above against its bear-market low of $52.83 on April 03, 2018. It has retreated -4.54% since it’s 52-week high of $80.19 reached in December. Now the market price is up 40.16% on the year and up 0.39% YTD.