Aristotle Capital Management 13F: Cuts Merck (MRK) Stake by $50M

Aristotle Capital Management recently trimmed its holdings in Merck & Co., Inc. (NYSE: MRK) by 386,461 shares, according to its latest Form 13F filing with the SEC. As of the filing, this reduction brought Aristotle's stake down to 6,894,432 shares, representing a 5.3% decrease. The value of the firm's position in Merck is approximately $820.8 million, based on the stock's recent trading price.

What Changed in Aristotle Capital's Merck Position

Aristotle Capital Management reduced its investment in Merck from 7,280,893 shares to 6,894,432 shares. This change reflects a decrease of 386,461 shares, or 5.3%. Despite this reduction, the firm's remaining shares in Merck are valued at about $820.8 million.

Other Institutional Activity in Merck

Other major funds have also been active in Merck. BlackRock, Inc. increased its position by 6,734,865 shares, holding a total of 225,830,330 shares worth approximately $27.2 billion. Vanguard Capital Management LLC added to its holdings significantly, now holding 160,987,624 shares valued at $19.4 billion. State Street Corp, however, reduced its position by 714,495 shares, now holding 119,325,673 shares valued at $14.5 billion. Wellington Management Group LLP also trimmed its holdings by 2,120,487 shares, ending with 84,314,971 shares worth about $10.1 billion.

Merck & Co., Inc. Stock Down 11.5%

Shares of Merck & Co., Inc. (NYSE: MRK) are trading near $119.05. The company boasts a market capitalization of roughly $294 billion. It has a P/E ratio of 33.54 and a forward P/E of 12.45, suggesting expectations of earnings growth. Merck's stock has a 52-week low of $76.66 and a high of $125.14. The stock's 50-day moving average is $116.18, while the 200-day moving average is $104.78. Merck has a current ratio of 1.30 and a quick ratio of 0.70, with a debt-to-equity ratio of 106.94.

Recent Earnings

In its most recent earnings report, Merck reported revenue of $65.8 billion, with a revenue growth rate of 4.9%. The company achieved a net margin of 13.6% and a return on equity of 18.9%. Earnings per share (EPS) stood at $3.55. Merck is expected to release its next earnings report on August 4, 2026.

Dividend

Merck offers a dividend rate of $3.40 per share, yielding 2.86% annually. The company's dividend payout ratio is 93.52%, indicating that a large portion of its earnings is returned to shareholders as dividends.

Insider Buying and Selling at Merck & Co., Inc.

Recent insider activity at Merck includes purchases by several insiders, each acquiring 1,853 shares at an average price of $118.72 on May 29, 2026. These transactions were not conducted under a pre-planned trading plan.

Analysts Set New Price Targets

Analysts remain bullish on Merck. On May 1, 2026, Wells Fargo maintained its 'buy' rating with a price target of $145. UBS also maintained a 'buy' rating with the same target price earlier in April. JP Morgan upheld its 'buy' rating with a $135 target on April 6. The consensus among 27 analysts is a 'buy' rating, with an average target price of $129.74.

About Merck & Co., Inc.

Merck & Co., Inc. is a global healthcare company based in Rahway, New Jersey. It provides a wide range of pharmaceuticals for human health, including treatments for various medical conditions under brands like Keytruda and Gardasil. Merck also offers veterinary health products for livestock and companion animals. The company, led by CEO Robert M. Davis, employs approximately 73,000 people worldwide.

Bottom Line

Aristotle Capital's decision to trim its stake in Merck reflects a strategic portfolio adjustment. Despite this, Merck remains a significant holding with a substantial market value. Investors keep a close eye on Merck due to its strong market position and ongoing developments in the healthcare sector. The 13F filings offer a snapshot of past holdings and may not reflect current positions.