Johnson & Johnson (NYSE:JNJ – Get Rating) was the target of some unusual options trading activity on Friday. Stock traders purchased 36,050 call options on the company. This is an increase of approximately 31% from the average daily volume of 27,550 call options.
Johnson & Johnson Trading up 0.9%
JNJ rose $1.54 during Friday trading to hit $166.62. 272,258 shares of the Company were exchanged compared to an average volume of 6,235,801. Johnson & Johnson has a yearly low of $155.72 and a yearly high of $186.69. The company has a current ratio of 1.42, a quick ratio of 1.17 and a debt-to-equity ratio of 0.37. The stock has a market cap of $438.07 billion, a P/E of 24.03, a price-to-earnings-to-growth ratio of 2.94, and a beta of 0.61. The company has a 50-day moving average price of $169.17 and a 200-day moving average price of $174.20.
Johnson & Johnson (NYSE:JNJ – Get Rating) last released its earnings results on Tuesday, July 19th. The company reported earnings per share (EPS) of $2.59 for the quarter, beating analyst consensus estimates of $2.57 by $0.02. Johnson & Johnson had a 19.21% net margin and a 36.14% return on equity. The company had revenue of $24.02 billion for the quarter, compared to the consensus estimate of $23.85 billion. In the same quarter last year, the company earned $2.48 per share. Johnson & Johnson’s quarterly sales increased 3.0% compared to the year-ago quarter. As a group, equities analysts are forecasting that Johnson & Johnson will post earnings per share of 10.7 for the current fiscal year.
Johnson & Johnson announces dividend
The company also recently announced a quarterly dividend, which was paid on Tuesday, September 6th. Investors of record were paid a dividend of $1.13 on Tuesday, August 23rd. That equates to a dividend of $4.52 on an annualized basis and a yield of 2.71%. The ex-dividend date was Monday 22nd August. Johnson & Johnson’s payout ratio is currently 65.79%.
Johnson & Johnson announced that its board of directors approved a share repurchase plan on Wednesday, September 14, authorizing the company to repurchase $5.00 billion of outstanding shares. This buyback authorization authorizes the company to acquire up to 1.2% of its shares through purchases on the open market. Stock buyback plans are usually an indication that the company’s management believes its stock is undervalued.
Hedge funds rely on Johnson & Johnson
Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Advisor Resource Council increased its stake in Johnson & Johnson by 807.8% in the fourth quarter. Advisor Resource Council now owns 14,316 shares of the Company valued at $2,450,000 after purchasing an additional 12,739 shares last quarter. Eagle Strategies LLC purchased a new position in Johnson & Johnson stock valued at $370,000 during the fourth quarter. Sequoia Financial Advisors LLC increased its stake in Johnson & Johnson by 326.6% in the fourth quarter. Sequoia Financial Advisors LLC now owns 37,291 shares of the company’s stock valued at $6,379,000 after purchasing an additional 28,550 shares last quarter. Forefront Analytics LLC increased its stake in Johnson & Johnson by 3.5% in the fourth quarter. Forefront Analytics LLC now owns 1,919 shares of the company’s stock valued at $328,000 after purchasing an additional 64 shares last quarter. Finally, Laraway Financial Inc acquired a new position in Johnson & Johnson valued at approximately $924,000 during the fourth quarter. Hedge funds and other institutional investors own 68.59% of the company’s shares.
Changes in analyst ratings
JNJ has been the subject of a number of analyst reports. SVB Leerink lowered its price target on shares of Johnson & Johnson from $200.00 to $194.00 in a research report on Wednesday, July 20. Wells Fargo & Company raised its target price on shares of Johnson & Johnson to $195.00 from $190.00 and ranked the company as “overweight” in a research report on Wednesday, July 13. Morgan Stanley lowered its price target on shares of Johnson & Johnson to $173.00 from $174.00 and gave the company an “equal weight” rating in a research report on Monday. Citigroup lowered its target price on shares of Johnson & Johnson to $201.00 from $205.00 in a research report on Wednesday, July 20. Finally, on Wednesday, June 22, Daiwa Capital Markets began reporting on shares of Johnson & Johnson in a research note. They gave the company an “Outperform” rating. Four research analysts have rated the stock with a hold rating, five with a buy rating and one with a strong buy rating on the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $189.78.
Company profile of Johnson & Johnson
Johnson & Johnson, together with its subsidiaries, researches, develops, manufactures and markets a variety of healthcare products worldwide. The Company’s Consumer Health segment offers baby care products under the JOHNSON’S and AVEENO Baby brands; LISTERINE brand oral care products; Skin health/beauty products under the brands AVEENO, CLEAN & CLEAR, DR.
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