Johnson & Johnson (NYSE:JNJ) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research downgraded shares of Johnson & Johnson (NYSE:JNJ) from a buy rating to a hold rating in a research note issued to investors on Thursday morning, reports. The brokerage currently has $139.00 price objective on the stock.

According to Zacks, “J&J beat estimates for earnings and sales in Q2 and raised the 2019 guidance for operational sales growth for the second time this year. J&J is witnessing significant generic/biosimilar headwinds in the Pharma unit in 2019. However, J&J’s sales and earnings growth is expected to accelerate in 2020 supported by contribution from new drugs like Tremfya and successful label expansion of cancer drugs like Imbruvica and Darzalex and immunology drug, Stelara. J&J is also making rapid progress with its pipeline and line extensions. It has already gained FDA approval for two new drugs in 2019, Balversa and Spravato. J&J’s shares have outperformed the industry this year. Headwinds like biosimilar/generic competition and pricing pressure remain. The talc and opioid litigations are overhangs on the stock.”

A number of other equities research analysts have also recently commented on JNJ. Royal Bank of Canada upped their target price on shares of Johnson Service Group from GBX 180 ($2.35) to GBX 190 ($2.48) and gave the company an outperform rating in a report on Tuesday, July 16th. Morgan Stanley set a $60.00 target price on shares of Berry Global Group and gave the company a hold rating in a report on Wednesday, April 17th. Credit Suisse Group reaffirmed a buy rating and issued a $90.00 target price on shares of Bayerische Motoren Werke in a report on Thursday. Bank of America raised shares of First Horizon National from an underperform rating to a neutral rating and set a $16.00 price target for the company in a report on Tuesday, July 16th. Finally, Raymond James reissued a reduce rating and set a $48.00 price target (up from $45.00) on shares of Hancock Whitney in a report on Wednesday. Five analysts have rated the stock with a hold rating and eight have given a buy rating to the company. The company currently has a consensus rating of Buy and an average price target of $148.56.

Shares of NYSE:JNJ opened at $130.31 on Thursday. The company has a 50-day simple moving average of $138.34. Johnson & Johnson has a one year low of $121.00 and a one year high of $148.99. The company has a quick ratio of 1.13, a current ratio of 1.44 and a debt-to-equity ratio of 0.47. The stock has a market capitalization of $345.98 billion, a PE ratio of 15.93, a price-to-earnings-growth ratio of 2.20 and a beta of 0.70.

Johnson & Johnson (NYSE:JNJ) last announced its earnings results on Tuesday, July 16th. The company reported $2.58 EPS for the quarter, beating analysts’ consensus estimates of $2.42 by $0.16. Johnson & Johnson had a net margin of 20.08% and a return on equity of 38.57%. The business had revenue of $20.56 billion during the quarter, compared to analysts’ expectations of $20.39 billion. During the same period in the prior year, the company earned $2.10 earnings per share. The business’s revenue was down 1.3% compared to the same quarter last year. On average, equities research analysts forecast that Johnson & Johnson will post 8.6 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 10th. Investors of record on Tuesday, August 27th will be issued a dividend of $0.95 per share. The ex-dividend date is Monday, August 26th. This represents a $3.80 annualized dividend and a yield of 2.92%. Johnson & Johnson’s dividend payout ratio is currently 46.45%.

In other news, Director Marillyn A. Hewson purchased 3,000 shares of the business’s stock in a transaction that occurred on Tuesday, June 11th. The stock was purchased at an average cost of $139.68 per share, with a total value of $419,040.00. Following the completion of the acquisition, the director now directly owns 3,000 shares of the company’s stock, valued at approximately $419,040. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 0.23% of the company’s stock.

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Zions Bancorporation N.A. grew its position in shares of Johnson & Johnson by 0.4% in the second quarter. Zions Bancorporation N.A. now owns 20,173 shares of the company’s stock valued at $2,810,000 after purchasing an additional 73 shares during the last quarter. Cambridge Advisors Inc. raised its stake in Johnson & Johnson by 0.3% during the fourth quarter. Cambridge Advisors Inc. now owns 22,436 shares of the company’s stock worth $2,895,000 after purchasing an additional 78 shares during the period. Stuart Chaussee & Associates Inc. raised its stake in shares of Johnson & Johnson by 20.7% in the 4th quarter. Stuart Chaussee & Associates Inc. now owns 466 shares of the company’s stock valued at $60,000 after acquiring an additional 80 shares during the period. Vishria Bird Financial Group LLC raised its stake in shares of Johnson & Johnson by 3.0% in the 2nd quarter. Vishria Bird Financial Group LLC now owns 2,736 shares of the company’s stock valued at $381,000 after acquiring an additional 80 shares during the period. Finally, Deane Retirement Strategies Inc. raised its stake in shares of Johnson & Johnson by 0.7% in the 4th quarter. Deane Retirement Strategies Inc. now owns 12,458 shares of the company’s stock valued at $1,608,000 after acquiring an additional 82 shares during the period. 66.85% of the stock is owned by hedge funds and other institutional investors.

Johnson & Johnson Company Profile

Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the health care field worldwide. It operates in three segments: Consumer, Pharmaceutical, and Medical Devices. The 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, 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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