Morgan Stanley Reduces Price Target for Organon & Co. to $16.00

Organon & Co. (NYSE:OGN) recently saw its target price lowered by analysts at Morgan Stanley from $17.00 to $16.00. This adjustment was shared in a research report issued to investors on Friday, which also maintained an "equal weight" rating on the stock. Morgan Stanley's updated price target reflects a potential upside of about 0.45% based on the company’s current stock price.

In a separate note, TD Cowen has upgraded Organon & Co. to a "hold" rating. Current ratings from analysts reveal that one has rated the stock as a sell, three as hold, one as buy, and one as a strong buy. The consensus rating stands at "Hold," with an average target price of $20.00, according to MarketBeat.com.

Recent Trading Activity

On Friday, shares of Organon & Co. traded down by 2.4%, decreasing by $0.39 during midday trading to reach a price of $15.93. The trading volume for the day hit approximately 306,014 shares, which is significantly lower than the average volume of 2,685,254 shares. The company shows a current ratio of 1.70, a quick ratio of 1.21, and a debt-to-equity ratio of 17.73. Notably, the 50-day and 200-day moving averages stand at $15.34 and $17.53, respectively. Over the past year, Organon & Co. has recorded a low of $13.87 and a high of $23.10. With a market cap of $4.10 billion, the company’s price-to-earnings (P/E) ratio is 3.20, demonstrating a price-to-earnings-growth (PEG) ratio of 0.83 and a beta of 0.76.

In its latest quarterly earnings released on Thursday, Organon & Co. reported earnings per share (EPS) of $0.83, which fell short of the consensus estimate of $0.92 by $0.09. The company recorded an impressive return on equity of 644.70%, alongside a net margin of 20.30%. Analysts predict that Organon & Co. will achieve an EPS of 3.82 for the current year.

Investment Activity

Recent investment activity indicates that various hedge funds and institutional investors are actively trading shares of Organon & Co. Among notable transactions, Barclays PLC increased its stake in the company by 238.0% during the third quarter, now holding 119,483 shares valued at approximately $2,285,000 after buying an additional 84,136 shares. Another major investor, Weiss Asset Management LP, invested in a new stake during the same quarter valued at $32,966,000. Cerity Partners LLC also raised its position by 94.0% in that period, now owning 667,340 shares worth about $12,766,000. Foundry Partners LLC and Beddow Capital Management Inc. also made significant investments, bringing institutional ownership in Organon & Co. to approximately 77.43%.

About Organon & Co.

Organon & Co. is a global pharmaceutical company founded on March 11, 2020, and headquartered in Jersey City, NJ. The company focuses on providing innovative health solutions through a diverse portfolio, concentrating on women's health, biosimilars, and established brands.

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