Mead Johnson Nutrition Co. (MJN) Downgraded by Zacks Investment Research to Sell
Mead Johnson Nutrition Co. (NYSE:MJN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.
According to Zacks, “Mead Johnson in last reported second-quarter 2016 witnessed a tough competitive scenario in the pediatric nutrition market which continues to be a major headwind. In emerging markets, macroeconomic turmoil in Brazil, Venezuela and Argentina spoiled whatever growth the company had achieved in Mexico and Columbia. Currency translation also remained a major challenge for the company across all regions. However Mead Johnson improved its gross margin because of lower dairy input costs. The company’s Fuel for Growth project also played a major role in improving its profitability. “
MJN has been the topic of a number of other research reports. Goldman Sachs Group Inc. reduced their price target on Mead Johnson Nutrition from $96.00 to $85.00 and set a “neutral” rating on the stock in a research report on Tuesday, September 27th. Credit Agricole SA raised Mead Johnson Nutrition from an “underperform” rating to an “outperform” rating and set a $96.00 price target on the stock in a research report on Wednesday, August 3rd. Deutsche Bank AG set a $88.00 price target on Mead Johnson Nutrition and gave the company a “hold” rating in a research report on Sunday, July 24th. BMO Capital Markets reaffirmed an “outperform” rating and issued a $97.00 price target on shares of Mead Johnson Nutrition in a research report on Monday, August 1st. Finally, Susquehanna reaffirmed a “hold” rating and issued a $95.00 price target on shares of Mead Johnson Nutrition in a research report on Monday, August 29th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and six have issued a buy rating to the company’s stock. Mead Johnson Nutrition presently has an average rating of “Hold” and a consensus price target of $94.83.
Mead Johnson Nutrition (NYSE:MJN) traded down 0.39% during midday trading on Tuesday, hitting $78.77. The company had a trading volume of 1,006,097 shares. The firm has a 50-day moving average price of $81.27 and a 200-day moving average price of $84.81. The company has a market cap of $14.55 billion, a price-to-earnings ratio of 29.64 and a beta of 1.26. Mead Johnson Nutrition has a 12 month low of $65.53 and a 12 month high of $94.40.
Mead Johnson Nutrition (NYSE:MJN) last posted its earnings results on Thursday, July 28th. The company reported $0.88 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.78 by $0.10. Mead Johnson Nutrition had a negative return on equity of 194.30% and a net margin of 13.28%. The firm had revenue of $941.50 million for the quarter, compared to analyst estimates of $967.25 million. During the same quarter in the prior year, the company earned $0.76 EPS. Mead Johnson Nutrition’s revenue was down 8.8% on a year-over-year basis. Equities analysts anticipate that Mead Johnson Nutrition will post $3.48 EPS for the current year.
The company also recently declared a quarterly dividend, which was paid on Monday, October 3rd. Investors of record on Monday, September 19th were paid a dividend of $0.4125 per share. The ex-dividend date was Thursday, September 15th. This represents a $1.65 dividend on an annualized basis and a yield of 2.09%. Mead Johnson Nutrition’s dividend payout ratio is presently 62.03%.
In related news, Director Kimberly A. Casiano sold 710 shares of the firm’s stock in a transaction that occurred on Monday, August 15th. The stock was sold at an average price of $89.75, for a total transaction of $63,722.50. Following the transaction, the director now owns 7,110 shares in the company, valued at approximately $638,122.50. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Graciela Monteagudo sold 45,873 shares of the firm’s stock in a transaction that occurred on Friday, August 5th. The stock was sold at an average price of $87.64, for a total value of $4,020,309.72. Following the transaction, the senior vice president now owns 13,800 shares in the company, valued at approximately $1,209,432. The disclosure for this sale can be found here. Corporate insiders own 0.50% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. William Blair Investment Management LLC purchased a new position in Mead Johnson Nutrition during the second quarter worth about $142,077,000. FMR LLC increased its position in Mead Johnson Nutrition by 11.8% in the second quarter. FMR LLC now owns 13,045,067 shares of the company’s stock worth $1,183,840,000 after buying an additional 1,378,877 shares in the last quarter. Waddell & Reed Financial Inc. boosted its stake in Mead Johnson Nutrition by 47.0% in the second quarter. Waddell & Reed Financial Inc. now owns 4,274,094 shares of the company’s stock worth $387,874,000 after buying an additional 1,367,163 shares during the last quarter. Bank of Montreal Can bought a new stake in Mead Johnson Nutrition during the second quarter worth $101,332,000. Finally, American Century Companies Inc. boosted its stake in Mead Johnson Nutrition by 15.2% in the second quarter. American Century Companies Inc. now owns 5,544,545 shares of the company’s stock worth $503,167,000 after buying an additional 732,011 shares during the last quarter. Hedge funds and other institutional investors own 96.93% of the company’s stock.
Mead Johnson Nutrition Company Profile
Mead Johnson Nutrition Company (Mead Johnson) is a pediatric nutrition company. The Company manufactures, distributes and sells infant formulas, children’s nutrition and other nutritional products. The Company operates through three segments: Asia, North America/Europe and Latin America. Its product portfolio includes routine and specialty infant formulas, children’s milks and milk modifiers, dietary supplements for pregnant and breastfeeding mothers, pediatric vitamins, and products for pediatric metabolic disorders.
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