Zacks Investment Research Lowers Johnson & Johnson (JNJ) to Hold
Zacks Investment Research cut shares of Johnson & Johnson (NYSE:JNJ) from a buy rating to a hold rating in a report published on Monday morning.
According to Zacks, “J&J reported mixed Q2 results, beating on earnings but missing on sales. Sales in J&J’s domestic Pharma segment have decelerated this year as a number of key growth drivers like Remicade and Concerta are facing competition. However, J&J is optimistic that sales growth will accelerate in 2H17. We believe that new products including Xarelto, Stelara, Darzalex, and Imbruvica remain the key to growth. Meanwhile, share buybacks and the restructuring initiative should provide bottom-line support. J&J is also making rapid progress with its pipeline and line extensions. The Actelion buy adds an attractive new therapeutic area – PAH. J&J’s shares have outperformed the large-cap pharma industry this year so far. However, headwinds like negative currency movement, generics, pricing pressure and soft global market conditions remain. Sluggish growth in the Consumer segment due to category slowdown is also a concern.”
JNJ has been the topic of several other reports. Morgan Stanley raised their price target on shares of Johnson & Johnson from $135.00 to $140.00 and gave the stock an overweight rating in a research report on Wednesday, July 5th. BidaskClub lowered shares of Johnson & Johnson from a strong-buy rating to a buy rating in a research report on Saturday, July 1st. Vetr lowered shares of Johnson & Johnson from a buy rating to a hold rating and set a $128.54 price target on the stock. in a research report on Monday, May 1st. Jefferies Group LLC reiterated a hold rating and set a $140.00 target price on shares of Johnson & Johnson in a research report on Friday, June 16th. Finally, Credit Suisse Group initiated coverage on shares of Johnson & Johnson in a research report on Thursday, July 20th. They set an outperform rating and a $148.00 target price on the stock. Three research analysts have rated the stock with a sell rating, nine have given a hold rating and eleven have assigned a buy rating to the company. Johnson & Johnson currently has an average rating of Hold and a consensus target price of $133.72.
Shares of Johnson & Johnson (NYSE:JNJ) traded down 0.26% during trading on Monday, hitting $133.00. 2,165,425 shares of the stock traded hands. The company has a market cap of $358.28 billion, a PE ratio of 22.50 and a beta of 0.78. Johnson & Johnson has a one year low of $109.32 and a one year high of $137.08. The firm has a 50 day moving average price of $133.33 and a 200-day moving average price of $125.48.
Johnson & Johnson (NYSE:JNJ) last posted its quarterly earnings results on Tuesday, July 18th. The company reported $1.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.79 by $0.04. The company had revenue of $18.84 billion for the quarter, compared to analyst estimates of $18.94 billion. Johnson & Johnson had a net margin of 22.52% and a return on equity of 26.83%. The business’s quarterly revenue was up 1.9% on a year-over-year basis. During the same period last year, the business posted $1.74 EPS. Analysts anticipate that Johnson & Johnson will post $7.18 earnings per share for the current fiscal year.
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The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 12th. Shareholders of record on Tuesday, August 29th will be paid a $0.84 dividend. This represents a $3.36 dividend on an annualized basis and a dividend yield of 2.52%. The ex-dividend date is Friday, August 25th. Johnson & Johnson’s dividend payout ratio is presently 56.76%.
In other Johnson & Johnson news, VP Paulus Stoffels sold 102,692 shares of the business’s stock in a transaction dated Monday, July 24th. The shares were sold at an average price of $133.14, for a total value of $13,672,412.88. Following the completion of the transaction, the vice president now directly owns 230,342 shares of the company’s stock, valued at $30,667,733.88. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Dominic J. Caruso sold 82,591 shares of the business’s stock in a transaction dated Thursday, July 20th. The stock was sold at an average price of $136.72, for a total transaction of $11,291,841.52. Following the completion of the transaction, the vice president now directly owns 226,693 shares of the company’s stock, valued at $30,993,466.96. The disclosure for this sale can be found here. Insiders own 0.19% of the company’s stock.
Several institutional investors have recently made changes to their positions in JNJ. Norges Bank bought a new position in shares of Johnson & Johnson during the fourth quarter worth $3,220,322,000. State Street Corp increased its position in shares of Johnson & Johnson by 4.3% in the first quarter. State Street Corp now owns 160,223,321 shares of the company’s stock worth $19,955,806,000 after buying an additional 6,656,371 shares in the last quarter. Asset Management One Co. Ltd. increased its position in shares of Johnson & Johnson by 1,147.4% in the fourth quarter. Asset Management One Co. Ltd. now owns 4,946,229 shares of the company’s stock worth $569,967,000 after buying an additional 4,549,711 shares in the last quarter. Harbour Capital Advisors LLC increased its position in shares of Johnson & Johnson by 13,327.8% in the second quarter. Harbour Capital Advisors LLC now owns 2,501,472 shares of the company’s stock worth $18,909,000 after buying an additional 2,482,843 shares in the last quarter. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main bought a new position in shares of Johnson & Johnson during the fourth quarter worth $277,294,000. 66.01% of the stock is owned by institutional investors.
About Johnson & Johnson
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. It operates through three segments: Consumer, Pharmaceutical and Medical Devices. Its primary focus is products related to human health and well-being.
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