Fintel reports that on September 21, 2023, Barclays initiated coverage of Organon (NYSE:OGN) with a Overweight recommendation.
Analyst Price Forecast Suggests 70.18% Upside
As of August 31, 2023, the average one-year price target for Organon is 31.62. The forecasts range from a low of 23.23 to a high of $45.15. The average price target represents an increase of 70.18% from its latest reported closing price of 18.58.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Organon is 6,376MM, an increase of 3.37%. The projected annual non-GAAP EPS is 4.89.
Organon Declares $0.28 Dividend
On August 8, 2023 the company declared a regular quarterly dividend of $0.28 per share ($1.12 annualized). Shareholders of record as of August 18, 2023 received the payment on September 14, 2023. Previously, the company paid $0.28 per share.
At the current share price of $18.58 / share, the stock's dividend yield is 6.03%.
Looking back five years and taking a sample every week, the average dividend yield has been 4.33%, the lowest has been 2.95%, and the highest has been 6.87%. The standard deviation of yields is 1.03 (n=81).
The current dividend yield is 1.64 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.38. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company has not increased its dividend in the last three years.
What is the Fund Sentiment?
There are 1274 funds or institutions reporting positions in Organon. This is a decrease of 84 owner(s) or 6.19% in the last quarter. Average portfolio weight of all funds dedicated to OGN is 0.15%, a decrease of 11.80%. Total shares owned by institutions decreased in the last three months by 3.02% to 229,416K shares. 
The put/call ratio of OGN is 1.12, indicating a bearish outlook.
What are Other Shareholders Doing?
Mawer Investment Management holds 13,194K shares representing 5.16% ownership of the company. In it's prior filing, the firm reported owning 13,275K shares, representing a decrease of 0.61%. The firm decreased its portfolio allocation in OGN by 15.70% over the last quarter.
Massachusetts Financial Services holds 8,844K shares representing 3.46% ownership of the company. In it's prior filing, the firm reported owning 8,362K shares, representing an increase of 5.45%. The firm decreased its portfolio allocation in OGN by 9.88% over the last quarter.
Invesco holds 8,277K shares representing 3.24% ownership of the company. In it's prior filing, the firm reported owning 7,015K shares, representing an increase of 15.25%. The firm increased its portfolio allocation in OGN by 959.94% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,930K shares representing 3.10% ownership of the company. In it's prior filing, the firm reported owning 7,882K shares, representing an increase of 0.61%. The firm decreased its portfolio allocation in OGN by 17.87% over the last quarter.
NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 6,585K shares representing 2.58% ownership of the company. In it's prior filing, the firm reported owning 6,657K shares, representing a decrease of 1.10%. The firm decreased its portfolio allocation in OGN by 16.74% over the last quarter.
Organon Background Information
(This description is provided by the company.)
Organon is a global healthcare company formed through a spinoff from Merck, known as MSD outside of the United States and Canada, to focus on improving the health of women throughout their lives. Here for her health, the company has a portfolio of more than 60 medicines and products across a range of therapeutic areas. Led by the reproductive health portfolio coupled with an expanding biosimilars business and stable franchise of established medicines, Organon’s products produce strong cash flows that will support investments in future growth opportunities in women’s health, including business development. In addition, Organon is pursuing opportunities to collaborate with biopharmaceutical innovators looking to commercialize their products by leveraging its scale and presence in fast growing international markets. Organon has a global footprint with significant scale and geographic reach, world-class commercial capabilities, and approximately 9,000 employees with headquarters located in Jersey City, New Jersey.
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