Merck & Co., Inc. (NYSE:MRK) Upgraded at Morgan Stanley

Morgan Stanley upgraded shares of Merck & Co., Inc. (NYSE:MRK) from an equal weight rating to an overweight rating in a research report released on Thursday morning, Marketbeat Ratings reports. They currently have $179.00 price objective on the stock, up from their prior price objective of $116.00.

MRK has been the subject of several other research reports. Daiwa Securities Group raised Merck & Co., Inc. from a “neutral” rating to an “outperform” rating and set a $143.00 price objective for the company in a research report on Wednesday, August 12th. CICC Research started coverage on shares of Merck & Co., Inc. in a research report on Wednesday, June 24th. They issued an “outperform” rating and a $138.00 target price on the stock. Barclays increased their price target on shares of Merck & Co., Inc. from $140.00 to $150.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 29th. Cantor Fitzgerald reissued a “neutral” rating and set a $120.00 price target on shares of Merck & Co., Inc. in a research report on Monday, July 6th. Finally, Argus boosted their price objective on shares of Merck & Co., Inc. from $130.00 to $145.00 and gave the stock a “buy” rating in a research note on Tuesday, August 11th. Fifteen equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $144.10.

Merck & Co., Inc. Stock Up 2.3%

Shares of NYSE:MRK opened at $152.43 on Thursday. Merck & Co., Inc. has a 52-week low of $77.58 and a 52-week high of $154.49. The firm has a market capitalization of $376.07 billion, a P/E ratio of 121.94, a P/E/G ratio of 6.58 and a beta of 0.19. The stock has a 50 day moving average price of $128.09 and a 200-day moving average price of $121.23. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.10 and a current ratio of 1.32.

Merck & Co., Inc. (NYSE:MRK) last released its earnings results on Tuesday, August 4th. The company reported ($0.13) EPS for the quarter, beating analysts’ consensus estimates of ($0.26) by $0.13. Merck & Co., Inc. had a return on equity of 16.73% and a net margin of 4.77%.The company had revenue of $16.61 billion during the quarter, compared to analysts’ expectations of $16.37 billion. During the same quarter last year, the business posted $2.13 EPS. The firm’s revenue for the quarter was up 5.1% compared to the same quarter last year. Merck & Co., Inc. has set its FY 2026 guidance at 2.660-2.760 EPS. As a group, equities research analysts anticipate that Merck & Co., Inc. will post 2.76 EPS for the current fiscal year.

Merck & Co., Inc. Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Tuesday, September 15th will be paid a $0.85 dividend. This represents a $3.40 annualized dividend and a dividend yield of 2.2%. The ex-dividend date is Tuesday, September 15th. Merck & Co., Inc.’s dividend payout ratio is currently 272.00%.

Insider Buying and Selling

In related news, EVP Chirfi Guindo sold 15,000 shares of the stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $131.00, for a total transaction of $1,965,000.00. Following the sale, the executive vice president directly owned 46,613 shares of the company’s stock, valued at $6,106,303. This trade represents a 24.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Jennifer Zachary sold 80,315 shares of the business’s stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $133.46, for a total value of $10,718,839.90. Following the completion of the transaction, the executive vice president directly owned 45,509 shares of the company’s stock, valued at approximately $6,073,631.14. This trade represents a 63.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 228,238 shares of company stock worth $29,977,783 over the last 90 days. 0.17% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the stock. Kingdom Financial Group LLC. purchased a new stake in Merck & Co., Inc. during the 4th quarter valued at $25,000. Abound Financial LLC purchased a new position in shares of Merck & Co., Inc. in the 4th quarter worth $26,000. Prosperity Bancshares Inc purchased a new position in shares of Merck & Co., Inc. in the 4th quarter worth $26,000. High Note Wealth LLC grew its holdings in shares of Merck & Co., Inc. by 58.9% in the fourth quarter. High Note Wealth LLC now owns 294 shares of the company’s stock worth $31,000 after acquiring an additional 109 shares during the period. Finally, IFC & Insurance Marketing Inc. bought a new stake in shares of Merck & Co., Inc. in the fourth quarter worth $31,000. 76.07% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Merck & Co., Inc.

Here are the key news stories impacting Merck & Co., Inc. this week:

• Positive Sentiment: Merck and Moderna reported that their personalized cancer therapy met key Phase 3 goals, improving recurrence-free and distant metastasis-free survival for high-risk melanoma patients when added to Keytruda. The result is the first major late-stage win for an mRNA cancer vaccine and strengthens the potential for regulatory approval and broader oncology applications. MRK/MRNA’s Personalized Cancer Therapy Delivers First Phase III Win
• Positive Sentiment: Several Wall Street firms raised their outlooks for MRK: Goldman Sachs increased its price target to $160 and kept a Buy rating, while BMO raised its target to $170 and UBS lifted its target to $175. Morgan Stanley also upgraded the shares to Overweight with a $179 target after the cancer-trial success.
• Positive Sentiment: Investors see Merck’s newer products, acquired assets and pipeline programs as a potential growth cushion against Keytruda’s eventual patent expiration. The company’s expanding portfolio could help diversify revenue beyond its flagship drug. Can Merck’s New Drugs Offer Growth Cushion Ahead of Keytruda LOE?
• Neutral Sentiment: Unusually high options activity indicates heightened investor interest and potential volatility, but it does not by itself establish the direction of the stock.
• Negative Sentiment: RBC Capital Markets downgraded Merck to Sector Perform and set a $150 target, arguing that execution risks and the 2028 Keytruda loss of exclusivity are being underestimated. RBC said near-term catalysts are attractive, but the stock’s valuation leaves limited room for additional gains. Merck upgraded at Morgan Stanley after cancer trial win; RBC downgrades
• Negative Sentiment: Jefferies separately moved Merck from Strong Buy to Hold. The central concern is that the shares have already rallied substantially on the trial news, making the current valuation appear demanding relative to the remaining patent and execution risks.

About Merck & Co., Inc.

Merck & Co, Inc is a global biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines, vaccines, biologic therapies and animal health products. Its portfolio spans multiple therapeutic areas with a particular emphasis on oncology, vaccines and infectious disease, as well as therapies for metabolic and chronic conditions. Among its well-known products are the cancer immunotherapy Keytruda (pembrolizumab) and the human papillomavirus vaccine Gardasil; the company also markets a range of medicines and vaccines for veterinary use through Merck Animal Health.

Founded in the late 19th century as the U.S.