Royal London Asset Management 13F: Cuts Merck (MRK) Stake by $39M

Royal London Asset Management Cuts Merck Exposure

Royal London Asset Management trimmed its investment in Merck & Co., Inc. (NYSE:MRK) according to a Form 13F filing with the SEC covering its holdings as of May 1, 2026. The institutional investor reduced its position by 300,997 shares, which translates to a 9.4% decrease from the previous quarter. This backward-looking filing reflects past positions and may not show current ownership.

Position Adjustments and Portfolio Value

Following the sale, the fund retained 2,896,154 shares of the pharmaceutical giant. Based on market pricing around the reporting period, those remaining shares carry an estimated value of $372.2 million. The reduction adjusts the fund's overall weight in the healthcare name while leaving it with a substantial multi-million dollar stake.

Merck & Co. Stock Background

The shares trade on the New York Stock Exchange under the ticker MRK. The stock changes hands well within its 52-week range, reflecting steady investor interest in major drug manufacturers.

Recent Earnings Performance

Merck posted trailing revenue of $66.57 billion alongside a revenue growth rate of 5.1%. The health company recorded earnings per share of $1.25, supported by a net margin of 4.8% and a return on equity of 7.0%. The corporation schedules its next earnings release for October 29, 2026.

Dividend Metrics

The company distributes an annual dividend rate of $3.40 per share, giving it a dividend yield of 2.3% based on current trading levels. That payout is backed by a dividend payout ratio of 2.7.

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

Company insiders recently added to their personal holdings in a series of transactions. On June 30, 2026, insider Karsanbhai Surendralal Lanca bought 127 shares at $128.50 each for a total of $16,319.50. On the same date, Christine Seidman acquired 63 shares at the same price valued at $8,095.50, and Mary Ellen Coe picked up 234 shares worth $30,069.00.

Wall Street Analyst Actions

Analyst firms maintain varied outlooks on the healthcare firm. On October 12, 2026, Citigroup maintained a neutral rating and raised its target to $145.00 from $125.00. On the same day, RBC Capital kept a sector perform rating while adjusting its target to $145.00 from $150.00. Cantor Fitzgerald maintained a neutral rating on October 8, 2026, lifting its target to $145.00 from $120.00. Morgan Stanley kept an overweight rating on October 7, 2026, moving its target to $177.00 from $179.00. JP Morgan maintained an overweight rating on October 5, 2026, setting a target of $165.00 from $150.00. Scotiabank maintained a sector outperform rating on September 29, 2026, raising its target to $180.00 from $155.00. HSBC maintained a buy rating on September 10, 2026, with a target of $172.00, and Leerink Partners maintained an outperform rating on September 9, 2026, raising its target to $161.00 from $127.00. Overall, analysts hold a consensus buy rating on the stock with a mean price target of $152.96 across 26 opinions.

Inside the Business

Headquartered in Rahway, New Jersey, Merck & Co. operates as a global healthcare company providing human health pharmaceuticals across oncology, vaccines, and veterinary products. The firm relies on major treatments like Keytruda and Gardasil alongside an extensive animal health portfolio to drive its worldwide business.

What to Watch at Merck & Co., Inc.

Market participants will look toward the company's upcoming earnings release on October 29, 2026, for further financial updates. Additional institutional filings will clarify whether other large investors follow Royal London's lead in trimming exposure.