1. Merck & Co., Inc. (NYSE:MRK)
Citadel Investment Group’s Stake Value: $231,980,000
Percentage of Citadel Investment Group’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 77
Merck & Co., Inc. (NYSE:MRK) is the top pharmaceutical stock based on billionaire Ken Griffin’s Q3 portfolio, with his hedge fund holding over 3 million shares of Merck & Co., Inc. (NYSE:MRK) in the third quarter, worth $231.98 million, accounting for 0.04% of the fund’s total Q3 portfolio. Merck & Co., Inc. (NYSE:MRK) is an American pharmaceutical company working to prevent and treat diseases that affect people and animals, including cancer, infectious diseases like HIV and Ebola, and emerging animal diseases.
Merck & Co., Inc. (NYSE:MRK) reported Q3 results on October 28. EPS for the period amounted to $1.75, beating estimates by $0.20. The quarterly revenue equaled $13.15 billion, up 4.80% from the preceding year quarter, exceeding estimates by $833.53 million.
On December 7, Guggenheim analyst Seamus Fernandez downgraded Merck & Co., Inc. (NYSE:MRK) to Neutral from Buy and removed his prior $98 price target on the shares, observing low pipeline visibility.
Fisher Asset Management is the biggest Merck & Co., Inc. (NYSE:MRK) stakeholder from Q3, with 10.63 million shares worth $798.66 million. Overall, 77 hedge funds reported owning stakes worth $4.55 billion in Merck & Co., Inc. (NYSE:MRK) in the third quarter, down from 79 funds in the preceding quarter, holding stakes valued at $5.29 billion.
Here is what Artisan Partners has to say about Merck & Co., Inc. (NYSE:MRK) in its Q1 2021 investor letter:
“In Q1, we initiated a position in Merck, a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. We purchased Merck when the stock came under pressure in part on concerns that the newly minted Biden administration could implement regulatory changes and lower drug costs in the pharmaceutical industry. Recent, but anticipated changes to Merck’s management team have also weighed on shares, as have concerns over the company’s heavy reliance on immunotherapy treatment Keytruda. Notably, Merck is not getting much credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions. While Merck is undergoing a period of transition, we think the company’s fundamentals are strong and believe changes to management should be a catalyst for improvement.”
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