Johnson & Johnson (JNJ) Stock Rating Lowered by Zacks Investment Research
Zacks Investment Research downgraded shares of Johnson & Johnson (NYSE:JNJ) from a buy rating to a hold rating in a report published on Tuesday.
According to Zacks, “J&J’s Pharma segment is performing better than the market in 2018 despite the impact of biosimilars on Remicade sales. Also, the Medical Devices and Consumer units are seeing improving organic growth trends. J&J has raised its full-year organic sales growth outlook thrice this year. Though quite a few key products in J&J’s portfolio like Remicade and Concerta are facing generic competition, we believe that new products in all segments, successful label expansion of cancer drugs like Imbruvica and Darzalex and contribution from recent acquisitions will continue to drive top-line growth. J&J enjoys a robust multi-year pipeline of new drugs and line extensions. Meanwhile, share buybacks and restructuring initiatives should provide bottom-line support. J&J’s shares have outperformed the industry in the past six months. Headwinds like generics, pricing pressure and soft global market conditions remain.”
Several other analysts also recently issued reports on JNJ. Wells Fargo & Co reiterated an outperform rating and set a $160.00 price target (up previously from $155.00) on shares of Johnson & Johnson in a research note on Wednesday, October 17th. HC Wainwright reiterated a buy rating on shares of Johnson & Johnson in a research note on Wednesday, October 17th. Raymond James increased their target price on Johnson & Johnson from $144.00 to $149.00 and gave the company an outperform rating in a research note on Wednesday, October 17th. Credit Suisse Group set a $149.00 target price on Johnson & Johnson and gave the company a buy rating in a research note on Sunday, October 14th. Finally, Citigroup increased their target price on Johnson & Johnson from $137.00 to $148.00 and gave the company a neutral rating in a research note on Monday, October 22nd. Two investment analysts have rated the stock with a sell rating, seven have given a hold rating and ten have assigned a buy rating to the company’s stock. The company has a consensus rating of Hold and an average price target of $143.90.
Johnson & Johnson (NYSE:JNJ) last released its quarterly earnings results on Tuesday, October 16th. The company reported $2.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.03 by $0.02. The company had revenue of $20.35 billion during the quarter, compared to the consensus estimate of $20.05 billion. Johnson & Johnson had a return on equity of 34.62% and a net margin of 1.89%. The firm’s revenue was up 3.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.90 EPS. On average, equities research analysts forecast that Johnson & Johnson will post 8.16 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 11th. Investors of record on Tuesday, November 27th will be paid a dividend of $0.90 per share. The ex-dividend date of this dividend is Monday, November 26th. This represents a $3.60 annualized dividend and a yield of 2.48%. Johnson & Johnson’s payout ratio is 49.32%.
In other Johnson & Johnson news, CAO Ronald A. Kapusta sold 8,441 shares of the company’s stock in a transaction that occurred on Thursday, November 8th. The stock was sold at an average price of $145.15, for a total value of $1,225,211.15. Following the completion of the transaction, the chief accounting officer now owns 17,284 shares of the company’s stock, valued at approximately $2,508,772.60. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Alex Gorsky sold 264,465 shares of the company’s stock in a transaction that occurred on Friday, November 16th. The shares were sold at an average price of $145.96, for a total value of $38,601,311.40. Following the completion of the transaction, the chief executive officer now directly owns 481,254 shares of the company’s stock, valued at approximately $70,243,833.84. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 510,544 shares of company stock valued at $74,414,877. 0.22% of the stock is owned by corporate insiders.
A number of institutional investors have recently bought and sold shares of JNJ. Gagnon Securities LLC raised its holdings in shares of Johnson & Johnson by 86.1% in the 1st quarter. Gagnon Securities LLC now owns 5,250 shares of the company’s stock worth $673,000 after buying an additional 2,429 shares in the last quarter. Signature Financial Management Inc. raised its holdings in shares of Johnson & Johnson by 209.5% in the 1st quarter. Signature Financial Management Inc. now owns 33,642 shares of the company’s stock worth $4,316,000 after buying an additional 22,773 shares in the last quarter. LexAurum Advisors LLC raised its holdings in shares of Johnson & Johnson by 1,152.4% in the 1st quarter. LexAurum Advisors LLC now owns 46,538 shares of the company’s stock worth $5,964,000 after buying an additional 42,822 shares in the last quarter. Personal Capital Advisors Corp raised its holdings in shares of Johnson & Johnson by 15.1% in the 1st quarter. Personal Capital Advisors Corp now owns 221,698 shares of the company’s stock worth $28,411,000 after buying an additional 29,043 shares in the last quarter. Finally, Chicago Capital LLC acquired a new position in shares of Johnson & Johnson in the 1st quarter worth approximately $6,092,000. 66.51% of the stock is owned by hedge funds and other institutional investors.
About Johnson & Johnson
Johnson & Johnson is a holding company, which engages in the research and development, manufacture and sale of products in the health care field. It operates through the following segments: Consumer, Pharmaceutical, and Medical Devices. The Consumer segment includes products used in the baby care, oral care, beauty, over-the-counter pharmaceutical, women’s health, and wound care markets.
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