Organon & Co. (NYSE:OGN) Shares Gap Up – Still a Buy?

Organon & Co. (NYSE:OGN)’s stock price gapped up prior to trading on Friday . The stock had previously closed at $8.60, but opened at $10.75. Organon & Co. shares last traded at $10.3770, with a volume of 7,262,680 shares changing hands.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the stock. Barclays raised their target price on shares of Organon & Co. from $7.50 to $8.00 and gave the company an “underweight” rating in a research note on Tuesday, February 24th. Zacks Research raised shares of Organon & Co. from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 14th. Finally, Wall Street Zen lowered shares of Organon & Co. from a “buy” rating to a “hold” rating in a research report on Saturday, January 31st. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus target price of $8.50.

Organon & Co. Price Performance

The stock’s 50-day moving average is $7.22 and its 200-day moving average is $7.65. The firm has a market cap of $2.95 billion, a P/E ratio of 15.97, a price-to-earnings-growth ratio of 0.79 and a beta of 0.67. The company has a quick ratio of 1.23, a current ratio of 1.82 and a debt-to-equity ratio of 11.47.

Organon & Co. (NYSE:OGN) last announced its earnings results on Thursday, February 12th. The company reported $0.63 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.73 by ($0.10). Organon & Co. had a return on equity of 122.01% and a net margin of 3.01%.The company had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.52 billion. During the same period last year, the firm posted $0.90 EPS. The company’s revenue was down 5.3% compared to the same quarter last year. As a group, equities analysts anticipate that Organon & Co. will post 3.23 EPS for the current fiscal year.

Organon & Co. Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, March 12th. Investors of record on Monday, February 23rd were given a dividend of $0.02 per share. The ex-dividend date of this dividend was Monday, February 23rd. This represents a $0.08 dividend on an annualized basis and a yield of 0.7%. Organon & Co.’s payout ratio is 11.27%.

Hedge Funds Weigh In On Organon & Co.

Institutional investors and hedge funds have recently bought and sold shares of the stock. Foster Dykema Cabot & Partners LLC bought a new position in Organon & Co. during the third quarter worth $29,000. Rothschild Investment LLC increased its holdings in Organon & Co. by 73.1% in the 3rd quarter. Rothschild Investment LLC now owns 3,899 shares of the company’s stock valued at $42,000 after buying an additional 1,646 shares during the period. Farther Finance Advisors LLC increased its holdings in Organon & Co. by 87.8% in the 4th quarter. Farther Finance Advisors LLC now owns 4,349 shares of the company’s stock valued at $31,000 after buying an additional 2,033 shares during the period. Smartleaf Asset Management LLC increased its holdings in Organon & Co. by 70.2% in the 3rd quarter. Smartleaf Asset Management LLC now owns 5,113 shares of the company’s stock valued at $53,000 after buying an additional 2,109 shares during the period. Finally, Eurizon Capital SGR S.p.A. bought a new stake in Organon & Co. in the 4th quarter valued at $44,000. Institutional investors own 77.43% of the company’s stock.

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.