JNJ Stock – What Investors Should Know About Johnson & Johnson
Johnson & Johnson (JNJ stock) is the world’s largest and most diverse healthcare company selling health products, drugs, and medical devices. Johnson & Johnson is a holding company that engages in research and development, manufacture, and sales of a range of products in the healthcare field. The Company operates through three segments: Consumer Health, Pharmaceutical, and Medical Devices. Its primary focus is products related to human health and well-being. Its geographic areas served include the United States, Europe, Western Hemisphere (excluding the United States), Africa, Asia, and the Pacific.
Johnson & Johnson’s most significant competitive advantage is its diverse business model. It operates in three divisions: pharmaceuticals, medical devices, and consumer products. Wide diversification allows the company to withstand downturns and economic cycles. J&J has one of the most extensive R&D budgets among pharmaceutical companies. The company was founded by Robert Wood Johnson I, James Wood Johnson, and Edward Mead Johnson Sr. in 1886 and is headquartered in New Brunswick, NJ.
Johnson & Johnson Business Segments
- Consumer Health – The Consumer Health segment includes a range of products that is focused on personal healthcare. Consumer segment products include skin care, health &beauty, over-the-counter medicines, baby care, oral care, women’s health, and wound care markets.
- Pharmaceuticals – The Pharmaceutical segment is focused on six therapeutic areas. These are Immunology, Infectious Diseases, Neuroscience, Oncology, Cardiovascular and Metabolism, and Pulmonary Hypertension. The company’s drugs cover a wide range of therapeutic areas, including neuroscience, cardiovascular and metabolism, immunology, oncology, pulmonary hypertension, infectious diseases, and vaccines.
- Medical Devices – The Medical Devices segment includes a range of products used in interventional solutions, orthopedics, cardiovascular & neurovascular surgery, and vision fields.
JNJ Stock: Annual Reports – Financials – SEC Filings
Johnson & Johnson is incorporated in the state of New Jersey. The company is primarily in the business of pharmaceutical preparations. For financial reporting, their fiscal year ends on January 2nd. This page includes all SEC registration details and a list of all documents (S-1, Prospectus, Current Reports, 8-K, 10K, Annual Reports) filed by Johnson & Johnson.
Johnson & Johnson is the largest and most diverse healthcare company in the world. The company is divided into three divisions: pharmaceutical, medical devices and diagnostics, and consumer. The drug and device groups account for nearly 80% of sales and generate the majority of the firm’s cash flows. Immunology, oncology, neurology, pulmonary, cardiology, and metabolic diseases are the therapeutic areas of the drug division. Orthopedics, surgery tools, vision care, and a few other smaller areas are the focus of the device segment. The final consumer group is concerned with baby care, beauty, oral care, over-the-counter drugs, and women’s health. Geographically, the United States generates slightly more than half of total revenue.
JNJ Stock Dividend and Buybacks
JNJ stock is a Dividend King, having raised its payout for 60 consecutive years. As a result, long-term investors can expect to earn more dividend income over the years. Obviously, this is not a guarantee. However, as long as the business remains profitable, it’s a safe bet that the dividend will continue rising.
Johnson & Johnson Announces Quarterly Dividend for Fourth Quarter 2022, Payable on December 6, 2022
J&J announced that its Board of Directors has declared a cash dividend for the fourth quarter of 2022. The amount is $1.13 per share on the company’s common JNJ stock. The dividend is payable on December 6, 2022, to shareholders of record at the close of business on November 22, 2022. The ex-dividend date is November 21, 2022.
Johnson & Johnson (JNJ stock ticker) announces an Equity Buyback for $5,000 million worth of its shares. (September 2022)
Johnson & Johnson announced a share repurchase program. Under the program, the company will repurchase up to $5 Billion worth of its common stock. The shares repurchased will be available for general corporate purposes. The program has no time limit. As of July 22, 2022, the company had approximately 2,629,200,000 shares of common stock outstanding.
JNJ Stock Forecast
Johnson & Johnson remains a steady growth play for investors. The company continues to steadily expand its business. After deleveraging its balance sheet, J&J announced a $16.6 billion acquisition of Abiomed. This transaction is a spin-off of the consumer health business. It is aimed at isolating liabilities and provides investors with peace of mind. At a reasonable valuation, J&J remains a long-term diverse growth play.
- 34 analysts offering price forecasts for Johnson & Johnson have a median target of 184.50, with a high estimate of 210.00 and a low estimate of 160.00. The median estimate represents a 95.44 difference from the last price of 176.09. (Source: businessinsider.com)
- Valuation metrics show that Johnson & Johnson may be undervalued. Its Value Score of B indicates it would be a good pick for value investors. The financial health and growth prospects of JNJ stock demonstrate its potential to outperform the market. It currently has a Growth Score of B. (Source: zachs.com)
- 20 analysts offering 12-month price forecasts for Johnson & Johnson have a median target of 180.50, with a high estimate of 215.00 and a low estimate of 160.00. The median estimate represents a +2.50% increase from the last price of 176.09. (Source: cnn.com)
- Based on 11 Wall Street analysts offering 12-month price targets for Johnson & Johnson in the last 3 months. The average price target is $181.60 with a high forecast of $215.00 and a low forecast of $160.00. The average price target represents a 3.13% change from the last price of $176.09. (Source: tipranks.com)
Is JNJ Stock a Buy, Sell, or Hold?
The main attractions for buying J&J stock are its stability and dividend. Its dividend currently yields 2.7%, which is higher than the S&P 500 average of 1.8%. However, growth investors might want to look elsewhere. Johnson & Johnson has underperformed in the broader markets over the last five years. Moving away from consumer health and toward higher-performing segments could boost the company’s growth prospects. However, the success of that transition will not be evident until at least next year. For the time being, growth investors might want to avoid the stock.
- Johnson & Johnson stock has received a consensus rating of buy. The average rating score is Aaa and is based on 19 buy ratings, 15 hold ratings, and 0 sell ratings. (Source: businessinsider.com)
- JNJ Stock has received a consensus rating of Hold. The company’s average rating score is 2.36 and is based on 4 buy ratings, 7 hold ratings, and no sell ratings. (Source: marketbeat.com)
- The Johnson & Johnson stock show buy signals from both short and long-term moving averages. Overall, this gives a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. (Source: stockinvest.us)
JNJ Stock Split History
Johnson & Johnson stock (JNJ stock symbol) underwent a total of 6 stock splits. The most recent stock split occurred on June 13th, 2001. One JNJ share bought prior to May 18th, 1970 would equal 144 JNJ stock shares today.
- June 13th, 2001 – 2:1 split
- June 12th, 1996 – 2:1 split
- June 10th, 1992 – 2:1 split
- May 11th, 1989 – 2:1 split
- May 19th, 1981 – 3:1 split
- May 18th, 1970 – 3:1 split
JNJ Stock News
Johnson & Johnson (JNJ stock) entered into a definitive agreement to acquire Abiomed, Inc. for $17.4 billion. (November 2022)
On October 31, 2022, Johnson & Johnson entered into a definitive agreement to acquire Abiomed, Inc. for $17.4 billion. Johnson & Johnson will acquire all outstanding shares of Abiomed through a tender offer for an upfront cash payment of $380.00 per share. Abiomed shareholders will also receive a non-tradeable contingent value right (CVR) entitling them to cash payments of up to $35.00 per share if certain commercial and clinical milestones are met. J&J plans to fund the transaction with cash on hand and short-term financing. Following the transaction’s completion, Abiomed will operate as a separate business within Johnson & Johnson MedTech.
The offer’s acceptance is not contingent on financing. Assuming the tender offer is successful, Johnson & Johnson will acquire any Abiomed shares not tendered in the tender offer for the same per share consideration as is payable in the tender offer. The transaction was approved unanimously by the boards of directors of both companies. The tender offer will run from November 15, 2022, to December 13, 2022. The deal is expected to close before the end of the first quarter of 2023. Johnson & Johnson’s financial advisor is J.P. Morgan Securities LLC. Abiomed’s financial advisor and fairness opinion provider are Goldman Sachs & Co. LLC.
NIKE, Inc. (NKE stock symbol ) designs, markets, and distributes athletic apparel, footwear, equipment, and accessories for sports and fitness activities. It is the largest athletic footwear and apparel brand in the world. The Company’s regional operating segments include North America; Europe, the Middle East & Africa (EMEA); Greater China; Asia Pacific & Latin America (APLA), Global Brand Divisions, Converse, and Corporate. Nike sells sports equipment and accessories under the NIKE Brand name. For example, sports bags, socks, sports balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other sports equipment. The company was founded by William Jay Bowerman and Philip H. Knight on January 25, 1964, and is headquartered in Beaverton, OR. The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971.