Warren Buffett Is Selling These 5 Stocks

4. Merck & Co., Inc. (NYSE: MRK)

Number of Hedge Fund Holders: 79

Percentage Decline in Stake in Q2: 49%

Merck & Co., Inc. (NYSE: MRK) is a New Jersey-based healthcare firm. It is placed fourth on our list of 10 stocks Warren Buffett is selling. According to the latest data, Berkshire Hathaway owned more than 9 million shares in the firm at the end of the second quarter of 2021, representing 0.24% of the portfolio. The shares are valued at more than $712 million. The Buffett-led firm has trimmed stake in the healthcare company by 49% compared to the first quarter of 2021. 

On July 26, investment advisory Truist assumed coverage of Merck & Co., Inc. (NYSE: MRK) stock with a Buy rating and a price target of $92, underlining that the stock could trade at 15-times expected earnings per share in 2022. 

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Merck & Co., Inc. (NYSE: MRK) with 10.3 million shares worth more than $802 million. 

In its Q1 2021 investor letter, Artisan Partners highlighted a few stocks and Merck & Co., Inc. (NYSE: MRK)  was one of them. Here is what the fund said:

“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.”