Johnson & Johnson (NYSE:JNJ) to Repurchase $5.00 billion in Shares

Johnson & Johnson (NYSE:JNJGet Rating) declared that its Board of Directors has authorized a share repurchase program on Wednesday, September 14th, RTT News reports. The company plans to buyback $5.00 billion in outstanding shares. This buyback authorization allows the company to buy up to 1.2% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s leadership believes its stock is undervalued.

Johnson & Johnson Trading Up 0.3 %

NYSE:JNJ opened at $165.08 on Friday. The business’s 50-day moving average is $169.44 and its two-hundred day moving average is $174.20. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.42 and a quick ratio of 1.17. Johnson & Johnson has a 12 month low of $155.72 and a 12 month high of $186.69. The firm has a market capitalization of $434.03 billion, a PE ratio of 24.03, a price-to-earnings-growth ratio of 3.07 and a beta of 0.61.

Johnson & Johnson (NYSE:JNJGet Rating) last released its quarterly earnings data on Tuesday, July 19th. The company reported $2.59 EPS for the quarter, beating the consensus estimate of $2.57 by $0.02. Johnson & Johnson had a return on equity of 36.14% and a net margin of 19.21%. The company had revenue of $24.02 billion for the quarter, compared to analyst estimates of $23.85 billion. During the same period last year, the company posted $2.48 earnings per share. The firm’s revenue was up 3.0% compared to the same quarter last year. Research analysts predict that Johnson & Johnson will post 10.04 earnings per share for the current fiscal year.

Johnson & Johnson Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 6th. Stockholders of record on Tuesday, August 23rd were paid a dividend of $1.13 per share. The ex-dividend date was Monday, August 22nd. This represents a $4.52 annualized dividend and a dividend yield of 2.74%. Johnson & Johnson’s dividend payout ratio is presently 65.79%.

Analyst Ratings Changes

A number of research analysts have weighed in on JNJ shares. Morgan Stanley reduced their price target on Johnson & Johnson from $174.00 to $173.00 and set an “equal weight” rating on the stock in a research note on Monday. Wells Fargo & Company increased their price target on Johnson & Johnson from $190.00 to $195.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 13th. UBS Group reduced their price target on Johnson & Johnson from $185.00 to $180.00 in a research note on Thursday, July 21st. Daiwa Capital Markets began coverage on Johnson & Johnson in a research report on Wednesday, June 22nd. They issued an “outperform” rating on the stock. Finally, SVB Leerink cut their target price on Johnson & Johnson from $200.00 to $194.00 in a research report on Wednesday, July 20th. Four investment analysts have rated the stock with a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, Johnson & Johnson presently has an average rating of “Moderate Buy” and an average price target of $189.78.

About Johnson & Johnson

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Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the healthcare field worldwide. The company's Consumer Health segment offers baby care products under the JOHNSON'S and AVEENO Baby brands; oral care products under the LISTERINE brand; skin health/beauty products under the AVEENO, CLEAN & CLEAR, DR.

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