Johnson & Johnson (JNJ) Downgraded by Zacks Investment Research to Sell
According to Zacks, “J&J’s Pharma segment is performing well. We believe J&J’s diversified business model, deep pipeline, lack of cyclicality and strong financial position will continue helping the company pave its way through tough situations. J&J has a deep and promising pipeline with a good new product launch record. However, challenges for the company remain in the form of generic competition, pricing pressure and pipeline setbacks. Quite a few products in the company’s portfolio including Invega and Ortho Tri-Cyclen Lo are facing generic competition. Moreover, biosimilar competition for Remicade entered several major EU markets in Feb 2015 while HCV sales continue to decline in the face of intense competition. Zytiga and Xarelto are also facing patent challenges in the U.S.”
A number of other equities research analysts have also weighed in on JNJ. BTIG Research restated a neutral rating on shares of Johnson & Johnson in a research note on Friday, June 3rd. Leerink Swann restated a buy rating on shares of Johnson & Johnson in a research note on Sunday, September 11th. Wells Fargo & Co. restated a buy rating on shares of Johnson & Johnson in a research note on Monday, June 6th. BMO Capital Markets restated an outperform rating and set a $132.00 price objective on shares of Johnson & Johnson in a research note on Wednesday, July 20th. Finally, Jefferies Group raised their price objective on Johnson & Johnson from $113.00 to $119.00 and gave the company a hold rating in a research note on Thursday, August 4th. Two equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and eleven have given a buy rating to the stock. The company currently has an average rating of Hold and a consensus target price of $120.19.
Johnson & Johnson (NYSE:JNJ) traded down 0.77% on Wednesday, hitting $118.47. The stock had a trading volume of 691,224 shares. The company’s 50 day moving average price is $119.56 and its 200-day moving average price is $116.58. The company has a market cap of $324.12 billion, a price-to-earnings ratio of 22.08 and a beta of 0.61. Johnson & Johnson has a 12-month low of $91.76 and a 12-month high of $126.07.
Johnson & Johnson (NYSE:JNJ) last issued its quarterly earnings data on Tuesday, July 19th. The company reported $1.74 earnings per share for the quarter, beating analysts’ consensus estimates of $1.68 by $0.06. Johnson & Johnson had a return on equity of 24.70% and a net margin of 20.97%. The firm earned $18.50 billion during the quarter, compared to analyst estimates of $17.98 billion. Equities research analysts anticipate that Johnson & Johnson will post $6.69 EPS for the current year.
The company also recently declared a quarterly dividend, which was paid on Tuesday, September 6th. Investors of record on Tuesday, August 23rd were paid a dividend of $0.80 per share. The ex-dividend date was Friday, August 19th. This represents a $3.20 annualized dividend and a yield of 2.68%. Johnson & Johnson’s dividend payout ratio is 60.15%.
In other news, VP Dominic J. Caruso sold 41,146 shares of the company’s stock in a transaction that occurred on Tuesday, July 26th. The stock was sold at an average price of $125.01, for a total value of $5,143,661.46. Following the sale, the vice president now directly owns 157,819 shares in the company, valued at approximately $19,728,953.19. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO Ronald A. Kapusta sold 2,935 shares of the company’s stock in a transaction that occurred on Friday, July 22nd. The shares were sold at an average price of $125.01, for a total value of $366,904.35. Following the completion of the sale, the chief accounting officer now owns 28,660 shares in the company, valued at $3,582,786.60. The disclosure for this sale can be found here. Corporate insiders own 0.11% of the company’s stock.
Several large investors have recently added to or reduced their stakes in the stock. Americafirst Capital Management LLC acquired a new position in shares of Johnson & Johnson during the second quarter valued at approximately $101,000. Tuttle Tactical Management LLC acquired a new position in shares of Johnson & Johnson during the second quarter valued at approximately $103,000. Lenox Wealth Management Inc. increased its position in shares of Johnson & Johnson by 24.3% in the second quarter. Lenox Wealth Management Inc. now owns 972 shares of the company’s stock valued at $118,000 after buying an additional 190 shares during the last quarter. Thomas J. Herzfeld Advisors Inc. increased its position in shares of Johnson & Johnson by 221.2% in the second quarter. Thomas J. Herzfeld Advisors Inc. now owns 1,002 shares of the company’s stock valued at $122,000 after buying an additional 690 shares during the last quarter. Finally, NCM Capital Management Group Inc. acquired a new position in shares of Johnson & Johnson during the second quarter valued at approximately $127,000. Institutional investors own 65.32% of the company’s stock.
Johnson & Johnson Company Profile
Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. The Company’s segments include Consumer, Pharmaceutical and Medical Devices. The Consumer segment includes a range of products used in the baby care, oral care, skin care, over-the-counter pharmaceutical, women’s health and wound care markets.
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