Fintel reports that on October 2, 2023, Cantor Fitzgerald reiterated coverage of Merck (NYSE:MRK) with a Overweight recommendation.
Analyst Price Forecast Suggests 23.13% Upside
As of August 31, 2023, the average one-year price target for Merck is 126.29. The forecasts range from a low of 104.03 to a high of $141.75. The average price target represents an increase of 23.13% from its latest reported closing price of 102.56.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Merck is 58,663MM, an increase of 0.60%. The projected annual non-GAAP EPS is 7.63.
Merck Declares $0.73 Dividend
On July 25, 2023 the company declared a regular quarterly dividend of $0.73 per share ($2.92 annualized). Shareholders of record as of September 15, 2023 will receive the payment on October 6, 2023. Previously, the company paid $0.73 per share.
At the current share price of $102.56 / share, the stock's dividend yield is 2.85%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.98%, the lowest has been 2.42%, and the highest has been 3.76%. The standard deviation of yields is 0.33 (n=237).
The current dividend yield is 0.39 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 2.38. 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's 3-Year dividend growth rate is 0.20%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 5052 funds or institutions reporting positions in Merck. This is a decrease of 19 owner(s) or 0.37% in the last quarter. Average portfolio weight of all funds dedicated to MRK is 0.84%, a decrease of 2.26%. Total shares owned by institutions decreased in the last three months by 2.85% to 2,117,687K shares. 
The put/call ratio of MRK is 0.75, indicating a bullish outlook.
What are Other Shareholders Doing?
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 79,156K shares representing 3.12% ownership of the company. In it's prior filing, the firm reported owning 78,490K shares, representing an increase of 0.84%. The firm increased its portfolio allocation in MRK by 0.92% over the last quarter.
Wellington Management Group Llp holds 77,246K shares representing 3.04% ownership of the company. In it's prior filing, the firm reported owning 68,564K shares, representing an increase of 11.24%. The firm increased its portfolio allocation in MRK by 16.61% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 60,415K shares representing 2.38% ownership of the company. In it's prior filing, the firm reported owning 59,161K shares, representing an increase of 2.08%. The firm increased its portfolio allocation in MRK by 0.31% over the last quarter.
Geode Capital Management holds 52,723K shares representing 2.08% ownership of the company. In it's prior filing, the firm reported owning 51,219K shares, representing an increase of 2.85%. The firm increased its portfolio allocation in MRK by 0.99% over the last quarter.
Bank Of America holds 37,332K shares representing 1.47% ownership of the company. In it's prior filing, the firm reported owning 40,002K shares, representing a decrease of 7.15%. The firm increased its portfolio allocation in MRK by 305.00% over the last quarter.
Merck Background Information
(This description is provided by the company.)
For 130 years, Merck, known as MSD outside of the United States and Canada, has been inventing for life, bringing forward medicines and vaccines for many of the world's most challenging diseases in pursuit of its mission to save and improve lives. It demonstrates its commitment to patients and population health by increasing access to health care through far-reaching policies, programs and partnerships. Today, Merck continues to be at the forefront of research to prevent and treat diseases that threaten people and animals - including cancer, infectious diseases such as HIV and Ebola, and emerging animal diseases - as we aspire to be the premier research-intensive biopharmaceutical company in the world.
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This story originally appeared on Fintel.
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