It’s an appealing income play to consider Merck & Co. Inc. (MRK)

The price of Merck & Co. Inc. (NYSE: MRK) closed at 84.53 in the last session, down -1.71% from day before closing price of $86.00. In other words, the price has decreased by $-1.47 from its previous closing price. On the day, 7144070 shares were traded. MRK reached its highest trading level at $86.50 during the session, while it also had its lowest trading level at $84.52.

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We take a closer look at MRK’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 20.91 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 27.90. For the most recent quarter (mrq), Quick Ratio is recorded 1.10 and its Current Ratio is at 1.40. In the meantime, Its Debt-to-Equity ratio is 0.73 whereas as Long-Term Debt/Eq ratio is at 0.66.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Berenberg on September 14, 2022, Upgraded its rating to Buy and sets its target price to $100 from $95 previously.

On July 06, 2022, Daiwa Securities Upgraded its rating to Buy which previously was Neutral and also upped its target price recommendation from $89 to $102.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Nov 09 when FRAZIER KENNETH C sold 663,881 shares for $82.26 per share. The transaction valued at 54,611,362 led to the insider holds 586,795 shares of the business.

DeLuca Richard R. sold 29,782 shares of MRK for $2,692,299 on Nov 04. The EVP&Pres, Merck Animal Heallth now owns 116,930 shares after completing the transaction at $90.40 per share. On Nov 04, another insider, Litchfield Caroline, who serves as the EVP & CFO of the company, sold 18,335 shares for $91.00 each. As a result, the insider received 1,668,503 and left with 24,114 shares of the company.

Valuation Measures:

As of this moment, Merck’s Price-to-Earnings (P/E) ratio for their current fiscal year is 12.89, and their Forward P/E ratio for the next fiscal year is 11.35. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 1.16. For the stock, the TTM Price-to-Sale (P/S) ratio is 3.70 while its Price-to-Book (P/B) ratio in mrq is 4.95.

Stock Price History:

Over the past 52 weeks, MRK has reached a high of $95.72, while it has fallen to a 52-week low of $71.50. The 50-Day Moving Average of the stock is 89.29, while the 200-Day Moving Average is calculated to be 84.54.

Shares Statistics:

According to the various share statistics, MRK traded on average about 9.00M shares per day over the past 3-months and 8.12M shares per day over the past 10 days. A total of 2.53B shares are outstanding, with a floating share count of 2.53B. Insiders hold about 0.10% of the company’s shares, while institutions hold 76.30% stake in the company. Shares short for MRK as of Jul 14, 2022 were 20.33M with a Short Ratio of 2.14, compared to 19.95M on Jun 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 0.80% and a Short% of Float of 0.80%.

Dividends & Splits

The forward annual dividend rate for MRK is 2.76, which was 2.48 in the trailing 12 months. Against a Trailing Annual Dividend Yield of 2.88%, it implies a Forward Annual Dividend Yield of 3.09%. The stock’s 5-year Average Dividend Yield is 2.99. The current Payout Ratio is 41.50% for MRK, which recently paid a dividend on Oct 06, 2022 with an ex-dividend date of Sep 13, 2022. Stock splits for the company last occurred on Jun 02, 2021 when the company split stock in a 1048:1000 ratio.

Earnings Estimates

The company has 15 analysts who recommend its stock at the moment. On average, analysts expect EPS of $1.86 for the current quarter, with a high estimate of $2.06 and a low estimate of $1.54, while EPS last year was $1.75. The consensus estimate for the next quarter is $1.62, with high estimates of $1.81 and low estimates of $1.43.

Analysts are recommending an EPS of between $7.61 and $7.24 for the fiscal current year, implying an average EPS of $7.37. EPS for the following year is $7.4, with 22 analysts recommending between $8.17 and $6.57.

Revenue Estimates

A total of 23 analysts have provided revenue estimates for MRK’s current fiscal year. The highest revenue estimate was $59.2B, while the lowest revenue estimate was $57.23B, resulting in an average revenue estimate of $58.21B. In the same quarter a year ago, actual revenue was $48.7B, up 19.50% from the average estimate. Based on 23 analysts’ estimates, the company’s revenue will be $56.98B in the next fiscal year. The high estimate is $59.49B and the low estimate is $53.92B. The average revenue growth estimate for next year is down -2.10% from the average revenue estimate for this year.