Organon & Co. (NYSE:OGN) Shares Gap Down After Earnings Miss

Organon & Co. (NYSE:OGN)’s stock price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $7.69, but opened at $6.70. Organon & Co. shares last traded at $6.5850, with a volume of 2,174,853 shares trading hands.

The company reported $0.63 EPS for the quarter, missing the consensus estimate of $0.74 by ($0.11). The firm had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.52 billion. Organon & Co. had a return on equity of 143.47% and a net margin of 7.95%.The company’s revenue was down 5.3% compared to the same quarter last year. During the same quarter last year, the firm earned $0.90 EPS.

Analysts Set New Price Targets

OGN has been the topic of several recent analyst reports. Barclays started coverage on Organon & Co. in a research report on Tuesday, December 9th. They set an “underweight” rating and a $7.50 target price on the stock. Zacks Research lowered Organon & Co. from a “hold” rating to a “strong sell” rating in a research note on Thursday, January 29th. Piper Sandler lowered shares of Organon & Co. from an “overweight” rating to an “underweight” rating and set a $5.00 price objective for the company. in a research report on Monday, October 27th. Wall Street Zen cut shares of Organon & Co. from a “buy” rating to a “hold” rating in a research note on Saturday, January 31st. Finally, JPMorgan Chase & Co. cut their price target on shares of Organon & Co. from $14.00 to $12.00 and set an “underweight” rating on the stock in a research note on Tuesday, November 11th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Reduce” and an average price target of $8.38.

Hedge Funds Weigh In On Organon & Co.

Institutional investors have recently bought and sold shares of the business. State of New Jersey Common Pension Fund D raised its position in Organon & Co. by 69.0% during the second quarter. State of New Jersey Common Pension Fund D now owns 216,737 shares of the company’s stock worth $2,098,000 after acquiring an additional 88,454 shares during the period. Sector Gamma AS purchased a new stake in shares of Organon & Co. during the third quarter worth about $5,807,000. Bryce Point Capital LLC acquired a new position in shares of Organon & Co. during the 2nd quarter worth about $465,000. Coldstream Capital Management Inc. lifted its stake in Organon & Co. by 61.6% in the 2nd quarter. Coldstream Capital Management Inc. now owns 22,686 shares of the company’s stock valued at $220,000 after buying an additional 8,644 shares in the last quarter. Finally, American Century Companies Inc. lifted its stake in Organon & Co. by 1,205.1% in the 2nd quarter. American Century Companies Inc. now owns 522,013 shares of the company’s stock valued at $5,053,000 after buying an additional 482,016 shares in the last quarter. 77.43% of the stock is owned by hedge funds and other institutional investors.

Organon & Co. Trading Down 13.6%

The company has a fifty day moving average of $7.88 and a 200-day moving average of $8.62. The company has a current ratio of 1.75, a quick ratio of 1.20 and a debt-to-equity ratio of 9.69. The company has a market capitalization of $1.73 billion, a price-to-earnings ratio of 3.43, a PEG ratio of 1.67 and a beta of 0.58.

About Organon & Co.

Organon & Co is a global healthcare company that was established as an independent, publicly traded entity following its spin-off from Merck & Co in June 2021. Headquartered in Jersey City, New Jersey, Organon focuses on delivering therapeutic solutions across women’s health, biosimilars, and established brands. The company’s creation reflected a strategic effort to concentrate on specialty pharmaceuticals and legacy products with proven patient impact.

In women’s health, Organon provides a broad portfolio of products addressing reproductive and gynecological conditions, including fertility treatments, contraception, and hormone replacement therapies.