Johnson & Johnson Given Equal Weight Rating at Morgan Stanley (JNJ)
Johnson & Johnson (NYSE:JNJ)‘s stock had its “equal weight” rating reiterated by stock analysts at Morgan Stanley in a report issued on Wednesday, Stock Ratings News reports.
The analysts wrote, “Margin pressure in 4Q13 raised concerns around sustainable leverage, but mix and cost dynamics should keep profitability on track,” the report noted. “Operating margins in the quarter missed consensus estimates by nearly 200 bps, due partly to royalty costs and a planned increase in spending in response to tax upside. However, we still expect about 100 bps of operating margin expansion in 2014, despite 60 bps of GM pressure from yen weakness. Pharma mix alone could be worth 50+ bps to margins, JNJ will likely exercise a buyback to offset OCD spin dilution and J&J’s ongoing $1 billion cost reduction program could help insulate operating leverage in future periods.”
Shares of Johnson & Johnson (NYSE:JNJ) traded down 0.03% during mid-day trading on Wednesday, hitting $94.005. 1,721,470 shares of the company’s stock traded hands. Johnson & Johnson has a one year low of $72.47 and a one year high of $95.99. The stock has a 50-day moving average of $93.05 and a 200-day moving average of $91.31. The company has a market cap of $265.2 billion and a P/E ratio of 20.97. Johnson & Johnson also was the target of unusually large options trading activity on Tuesday. Investors acquired 13,290 put options on the stock. This represents an increase of 142% compared to the typical daily volume of 5,496 put options.
Johnson & Johnson (NYSE:JNJ) last announced its earnings results on Tuesday, January 21st. The company reported $1.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.20 by $0.04. The company had revenue of $18.40 billion for the quarter, compared to the consensus estimate of $17.95 billion. During the same quarter in the previous year, the company posted $1.19 earnings per share. The company’s quarterly revenue was up 4.5% on a year-over-year basis. Analysts expect that Johnson & Johnson will post $5.48 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Tuesday, March 11th. Investors of record on Tuesday, February 25th will be given a dividend of 0.66 per share. This represents a $2.64 dividend on an annualized basis and a yield of 2.81%. The ex-dividend date of this dividend is Friday, February 21st.
A number of other firms have also recently commented on JNJ. Analysts at Ned Davis Research upgraded shares of Johnson & Johnson from a “neutral” rating to a “buy” rating in a research note to investors on Monday, January 13th. Separately, analysts at Barclays downgraded shares of Johnson & Johnson from an “overweight” rating to an “equal weight” rating in a research note to investors on Friday, January 10th. They now have a $99.00 price target on the stock. Finally, analysts at Zacks reiterated a “neutral” rating on shares of Johnson & Johnson in a research note to investors on Thursday, January 9th. They now have a $99.00 price target on the stock. Two research analysts have rated the stock with a sell rating, six have issued a hold rating and nine have given a buy rating to the stock. Johnson & Johnson has an average rating of “Hold” and an average price target of $81.53.
Johnson & Johnson is a holding company. The Company is engaged in the research and development, manufacture and sale of a broad range of products in the health care field.
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