Zacks Investment Research downgraded shares of Johnson & Johnson (NYSE:JNJ) from a buy rating to a hold rating in a report released on Monday morning.
According to Zacks, “J&J’s sales growth accelerated in the second half of 2017 backed by higher sales in the Pharmaceutical segment and improving performance in Medical Devices. 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, label expansion of drugs like Imbruvica and Darzalex and contribution from recent acquisitions – mainly Actelion – can support top-line growth. Meanwhile, share buybacks and the restructuring initiative should provide bottom-line support. However, headwinds like generics, pricing pressure and soft global market conditions remain. Sluggish growth in the Consumer segment is also a concern. J&J’s shares have underformed the industry in this year so far. Estimates have risen slightly ahead of Q1 results. J&J has a positive record of earnings surprises in the recent quarters.”
Several other research firms have also weighed in on JNJ. Wells Fargo reiterated an outperform rating and issued a $160.00 price objective (up from $155.00) on shares of Johnson & Johnson in a research note on Friday, January 12th. Vetr upgraded Johnson & Johnson from a hold rating to a buy rating and set a $150.89 price objective on the stock in a research note on Thursday, January 11th. Credit Suisse Group set a $154.00 price objective on Johnson & Johnson and gave the company a hold rating in a research note on Monday, January 22nd. Royal Bank of Canada reiterated a buy rating on shares of Johnson & Johnson in a research note on Tuesday, January 9th. Finally, BTIG Research reiterated a sell rating and issued a $110.00 price objective on shares of Johnson & Johnson in a research note on Wednesday, January 24th. Five analysts have rated the stock with a sell rating, eight have issued a hold rating and nine have assigned a buy rating to the company’s stock. The stock has a consensus rating of Hold and a consensus price target of $144.43.
Johnson & Johnson (NYSE:JNJ) last released its quarterly earnings data on Tuesday, January 23rd. The company reported $1.74 earnings per share for the quarter, beating the consensus estimate of $1.72 by $0.02. Johnson & Johnson had a return on equity of 29.00% and a net margin of 1.70%. The company had revenue of $20.20 billion for the quarter, compared to analyst estimates of $20.08 billion. During the same period in the prior year, the company posted $1.58 EPS. The company’s revenue was up 11.5% compared to the same quarter last year. analysts forecast that Johnson & Johnson will post 8.11 earnings per share for the current year.
In other Johnson & Johnson news, VP Paulus Stoffels sold 155,342 shares of the company’s stock in a transaction on Thursday, February 15th. The stock was sold at an average price of $129.86, for a total transaction of $20,172,712.12. Following the transaction, the vice president now owns 357,906 shares of the company’s stock, valued at approximately $46,477,673.16. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. 0.22% of the stock is currently owned by corporate insiders.
Large investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake in shares of Johnson & Johnson by 1.5% in the 2nd quarter. Vanguard Group Inc. now owns 200,450,985 shares of the company’s stock valued at $26,517,661,000 after purchasing an additional 3,023,110 shares during the period. BlackRock Inc. lifted its stake in shares of Johnson & Johnson by 2.6% in the 2nd quarter. BlackRock Inc. now owns 174,073,764 shares of the company’s stock valued at $23,028,219,000 after purchasing an additional 4,332,612 shares during the period. Bank of New York Mellon Corp lifted its stake in shares of Johnson & Johnson by 0.4% in the 3rd quarter. Bank of New York Mellon Corp now owns 36,594,054 shares of the company’s stock valued at $4,757,593,000 after purchasing an additional 130,437 shares during the period. Geode Capital Management LLC lifted its stake in shares of Johnson & Johnson by 3.2% in the 4th quarter. Geode Capital Management LLC now owns 30,521,157 shares of the company’s stock valued at $4,256,109,000 after purchasing an additional 939,488 shares during the period. Finally, FMR LLC lifted its stake in shares of Johnson & Johnson by 5.9% in the 2nd quarter. FMR LLC now owns 27,237,648 shares of the company’s stock valued at $3,603,268,000 after purchasing an additional 1,509,745 shares during the period. 67.24% of the stock is currently owned by hedge funds and other institutional investors.
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Johnson & Johnson Company Profile
Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the health care field worldwide. Its Consumer segment offers baby care products under the JOHNSON'S brand; oral care products under the LISTERINE brand; beauty products under the AVEENO, CLEAN & CLEAR, DABAO, JOHNSON'S Adult, LE PETITE MARSEILLAIS, NEUTROGENA, RoC, and OGX brands; over-the-counter medicines, including acetaminophen products under the TYLENOL brand; cold, flu, and allergy products under the SUDAFED brand; allergy products under the BENADRYL and ZYRTEC brands; ibuprofen products under the MOTRIN IB brand; and acid reflux products under the PEPCID brand.
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