Organon & Co. (NYSE:OGN) Shares Gap Down Following Weak Earnings

Shares of Organon & Co. (NYSE:OGN) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $7.69, but opened at $6.70. Organon & Co. shares last traded at $6.5850, with a volume of 2,174,853 shares changing hands.

The company reported $0.63 EPS for the quarter, missing the consensus estimate of $0.74 by ($0.11). The business had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.52 billion. Organon & Co. had a net margin of 7.95% and a return on equity of 143.47%. Organon & Co.’s revenue for the quarter was down 5.3% compared to the same quarter last year. During the same quarter last year, the business earned $0.90 EPS.

Analyst Ratings Changes

Several brokerages have issued reports on OGN. Piper Sandler downgraded shares of Organon & Co. from an “overweight” rating to an “underweight” rating and set a $5.00 price objective for the company. in a research note on Monday, October 27th. Barclays began coverage on Organon & Co. in a report on Tuesday, December 9th. They set an “underweight” rating and a $7.50 price objective for the company. Wall Street Zen lowered Organon & Co. from a “buy” rating to a “hold” rating in a research note on Saturday, January 31st. Zacks Research downgraded Organon & Co. from a “hold” rating to a “strong sell” rating in a research report on Thursday, January 29th. Finally, Morgan Stanley cut their price target on shares of Organon & Co. from $10.00 to $9.00 and set an “equal weight” rating on the stock in a report on Tuesday, November 11th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat, Organon & Co. has an average rating of “Reduce” and a consensus target price of $8.38.

Institutional Trading of Organon & Co.

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Hantz Financial Services Inc. raised its position in shares of Organon & Co. by 293.8% in the 2nd quarter. Hantz Financial Services Inc. now owns 2,674 shares of the company’s stock worth $26,000 after acquiring an additional 1,995 shares in the last quarter. Foster Dykema Cabot & Partners LLC bought a new stake in Organon & Co. during the third quarter valued at about $29,000. Rothschild Investment LLC grew its stake in Organon & Co. by 73.1% in the third quarter. Rothschild Investment LLC now owns 3,899 shares of the company’s stock valued at $42,000 after purchasing an additional 1,646 shares during the last quarter. SouthState Corp raised its holdings in Organon & Co. by 1,857.0% in the second quarter. SouthState Corp now owns 3,914 shares of the company’s stock worth $38,000 after purchasing an additional 3,714 shares in the last quarter. Finally, Farther Finance Advisors LLC raised its holdings in Organon & Co. by 87.8% in the fourth quarter. Farther Finance Advisors LLC now owns 4,349 shares of the company’s stock worth $31,000 after purchasing an additional 2,033 shares in the last quarter. Institutional investors own 77.43% of the company’s stock.

Organon & Co. Trading Down 13.6%

The firm has a market capitalization of $1.73 billion, a PE ratio of 3.43, a price-to-earnings-growth ratio of 1.67 and a beta of 0.58. The company’s 50-day simple moving average is $7.88 and its 200 day simple moving average is $8.62. The company has a quick ratio of 1.20, a current ratio of 1.75 and a debt-to-equity ratio of 9.69.

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.