Organon & Co. (NYSE:OGN) Sets New 1-Year High – Still a Buy?

Organon & Co. (NYSE:OGN)’s stock price reached a new 52-week high during trading on Thursday . The stock traded as high as $13.48 and last traded at $13.4850, with a volume of 2868323 shares traded. The stock had previously closed at $13.38.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on OGN shares. Piper Sandler upgraded shares of Organon & Co. from an “underweight” rating to a “neutral” rating and upped their price target for the company from $5.00 to $14.00 in a research report on Tuesday, April 28th. BNP Paribas Exane reissued a “neutral” rating and issued a $14.00 price objective (up from $12.00) on shares of Organon & Co. in a research note on Wednesday, April 29th. Weiss Ratings upgraded Organon & Co. from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, May 15th. Barclays raised their target price on Organon & Co. from $7.50 to $8.00 and gave the stock an “underweight” rating in a research report on Tuesday, February 24th. Finally, Zacks Research upgraded Organon & Co. from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 14th. Five analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Reduce” and an average price target of $11.40.

Organon & Co. Stock Up 0.7%

The stock’s 50-day moving average price is $11.32 and its 200-day moving average price is $8.81. The company has a current ratio of 1.97, a quick ratio of 1.42 and a debt-to-equity ratio of 9.47. The stock has a market cap of $3.54 billion, a price-to-earnings ratio of 14.49, a P/E/G ratio of 1.24 and a beta of 1.55.

Organon & Co. (NYSE:OGN) last announced its earnings results on Thursday, April 30th. The company reported $0.71 earnings per share for the quarter, missing analysts’ consensus estimates of $0.83 by ($0.12). The firm had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.49 billion. Organon & Co. had a return on equity of 99.95% and a net margin of 3.99%.Organon & Co.’s quarterly revenue was down 3.5% on a year-over-year basis. During the same period in the prior year, the business earned $1.02 EPS. On average, sell-side analysts expect that Organon & Co. will post 3.23 earnings per share for the current year.

Organon & Co. Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Monday, May 11th will be paid a $0.02 dividend. This represents a $0.08 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Monday, May 11th. Organon & Co.’s payout ratio is currently 8.60%.

Insider Activity

In other Organon & Co. news, SVP Lynette Holzbaur bought 26,448 shares of the business’s stock in a transaction that occurred on Wednesday, May 6th. The shares were bought at an average price of $13.35 per share, for a total transaction of $353,080.80. Following the transaction, the senior vice president directly owned 52,851 shares in the company, valued at approximately $705,560.85. This trade represents a 100.17% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.62% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Organon & Co.

Several institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its holdings in shares of Organon & Co. by 2.7% during the 4th quarter. Vanguard Group Inc. now owns 36,916,382 shares of the company’s stock worth $264,690,000 after buying an additional 987,979 shares in the last quarter. State Street Corp increased its stake in shares of Organon & Co. by 2.8% in the 4th quarter. State Street Corp now owns 9,597,761 shares of the company’s stock valued at $68,816,000 after acquiring an additional 262,185 shares in the last quarter. AQR Capital Management LLC lifted its position in shares of Organon & Co. by 105.2% during the 4th quarter. AQR Capital Management LLC now owns 8,570,958 shares of the company’s stock valued at $61,282,000 after acquiring an additional 4,394,814 shares during the period. Private Management Group Inc. lifted its position in shares of Organon & Co. by 38.3% during the 4th quarter. Private Management Group Inc. now owns 4,347,073 shares of the company’s stock valued at $31,169,000 after acquiring an additional 1,204,979 shares during the period. Finally, UBS Group AG boosted its stake in Organon & Co. by 55.2% during the fourth quarter. UBS Group AG now owns 4,295,002 shares of the company’s stock worth $30,795,000 after acquiring an additional 1,527,492 shares in the last quarter. 77.43% of the stock is owned by institutional investors and hedge funds.

Organon & Co. Company Profile

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.