Published - August 31th, 2023 @ 11:30 AM (GMT+2)
J&J's Stock Performance
Johnson & Johnson's (NYSE:JNJ) current stock price is $163.10, with a market cap of $394.26 billion. Over the past month, the stock has declined by 2.64%, but it has seen a modest increase of 1.09% since last year. Year-to-date, the stock is down by 8.47%, with an average trading volume of 32.84 million shares.
Bank of America Securities recently reiterated a 'Hold' rating on J&J with a price target of $180. This comes amidst a backdrop of varying opinions from other financial institutions, including a 'Hold' from J.P. Morgan and a 'Buy' from Cantor Fitzgerald.
Earnings Growth Forecast - Impact of Kenvue Spinoff
J&J has released its first earnings forecast as a standalone pharmaceutical and medical devices company, estimating a 12.5% increase in adjusted earnings per share for the year. The company expects earnings per share to be between $10 and $10.10.
The spinoff of Kenvue has been one of the most significant shakeups in J&J's history. The company now maintains a 9.5% stake in Kenvue, which debuted on the New York Stock Exchange with a market capitalization of nearly $79 billion.
Insider Activity
Recent insider activity indicates a negative sentiment, with an increase in insiders selling their shares. Last month, Hait William, an insider at J&J, sold 14,698 shares for a total of $2,528,056.
J&J's Future: Pharmaceutical and Medical Devices Focus
Post-Kenvue, J&J is focusing more on its pharmaceutical and medical technology businesses. The company reported a quarterly revenue of $25.53 billion and a net profit of $5.14 billion for the quarter ending June 30.
Conclusion
Johnson & Johnson is at a pivotal moment, with its recent Kenvue spinoff and a focus on pharmaceuticals and medical devices. While the stock has seen some volatility, the company's double-digit earnings growth forecast offers a promising outlook.
Investors should keep an eye on insider activity and analyst ratings to make informed decisions.
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