Merck & Co., Inc. (NYSE:MRK) Hits New 1-Year High – Should You Buy?

Merck & Co., Inc. (NYSE:MRK)’s share price hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $125.36 and last traded at $125.5010, with a volume of 6550201 shares traded. The stock had previously closed at $120.60.

Key Stories Impacting Merck & Co., Inc.

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

• Positive Sentiment: The European Commission approved Keytruda plus Padcev for adults with resectable muscle-invasive bladder cancer who are ineligible for cisplatin-based chemotherapy, expanding Merck’s oncology footprint in Europe and adding another label expansion for a major growth drug. European Commission Approves KEYTRUDA Plus Padcev
• Positive Sentiment: The U.S. FDA also approved Keytruda and Keytruda Qlex in combination with Gilead’s Trodelvy for first-line treatment of PD-L1+ advanced triple-negative breast cancer, reinforcing Merck’s ability to keep extending Keytruda into new cancer settings. FDA Approves KEYTRUDA and KEYTRUDA QLEX with Trodelvy
• Positive Sentiment: Merck’s experimental tulisokibart also hit its goal in a late-stage ulcerative colitis study, helping investors see progress beyond Keytruda and strengthening the company’s immunology pipeline. Merck’s Anti-TL1A Antibody Meets Goal in Ulcerative Colitis Study
• Positive Sentiment: Analyst coverage has been constructive, with CICC Research initiating coverage with an outperform rating and a $138 price target, suggesting additional upside from current levels. CICC Research coverage note
• Neutral Sentiment: Other recent analyst notes were mixed, with Citi reiterating Hold and Scotiabank reaffirming Buy, which adds commentary but does not materially change the main investment story. Citi keeps hold rating Scotiabank reaffirms buy rating

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on MRK shares. UBS Group upped their price target on Merck & Co., Inc. from $130.00 to $145.00 and gave the stock a “buy” rating in a research report on Monday, April 13th. Wall Street Zen upgraded Merck & Co., Inc. from a “hold” rating to a “buy” rating in a research note on Saturday, June 6th. JPMorgan Chase & Co. upped their target price on Merck & Co., Inc. from $125.00 to $135.00 and gave the company an “overweight” rating in a research report on Monday, April 6th. Weiss Ratings cut Merck & Co., Inc. from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, May 15th. Finally, Zacks Research raised Merck & Co., Inc. from a “strong sell” rating to a “hold” rating in a report on Tuesday, March 17th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $128.72.

Merck & Co., Inc. Stock Up 4.3%

The business has a fifty day moving average price of $115.77 and a two-hundred day moving average price of $114.05. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.30 and a quick ratio of 1.06. The firm has a market capitalization of $310.64 billion, a price-to-earnings ratio of 35.43, a price-to-earnings-growth ratio of 2.69 and a beta of 0.21.

Merck & Co., Inc. (NYSE:MRK) last issued its earnings results on Thursday, April 30th. The company reported ($1.28) EPS for the quarter, beating analysts’ consensus estimates of ($1.47) by $0.19. Merck & Co., Inc. had a return on equity of 27.55% and a net margin of 13.59%.The firm had revenue of $16.29 billion for the quarter, compared to analyst estimates of $15.85 billion. During the same quarter in the prior year, the firm earned $2.22 earnings per share. Merck & Co., Inc.’s revenue for the quarter was up 4.9% on a year-over-year basis. Merck & Co., Inc. has set its FY 2026 guidance at 5.040-5.160 EPS. On average, equities analysts expect that Merck & Co., Inc. will post 5.17 earnings per share for the current year.

Merck & Co., Inc. Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 8th. Investors of record on Monday, June 15th will be issued a dividend of $0.85 per share. This represents a $3.40 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Monday, June 15th. Merck & Co., Inc.’s dividend payout ratio (DPR) is 95.77%.

Institutional Investors Weigh In On Merck & Co., Inc.

Hedge funds have recently added to or reduced their stakes in the business. Brighton Jones LLC lifted its stake in shares of Merck & Co., Inc. by 29.5% in the 4th quarter. Brighton Jones LLC now owns 38,278 shares of the company’s stock valued at $3,808,000 after purchasing an additional 8,710 shares during the period. Sivia Capital Partners LLC increased its holdings in Merck & Co., Inc. by 52.2% in the second quarter. Sivia Capital Partners LLC now owns 11,494 shares of the company’s stock valued at $910,000 after buying an additional 3,941 shares in the last quarter. Diversify Advisory Services LLC raised its position in shares of Merck & Co., Inc. by 94.1% in the second quarter. Diversify Advisory Services LLC now owns 32,256 shares of the company’s stock worth $2,590,000 after acquiring an additional 15,636 shares during the period. Diversify Wealth Management LLC boosted its stake in shares of Merck & Co., Inc. by 22.2% during the 2nd quarter. Diversify Wealth Management LLC now owns 38,031 shares of the company’s stock worth $3,054,000 after acquiring an additional 6,897 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Merck & Co., Inc. by 111.7% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 681,128 shares of the company’s stock worth $53,918,000 after acquiring an additional 359,356 shares in the last quarter. 76.07% of the stock is owned by hedge funds and other institutional investors.

Merck & Co., Inc. Company Profile

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.