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

Johnson & Johnson (NYSE:JNJGet Rating) announced that its Board of Directors has initiated 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 permits the company to purchase up to 1.2% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s leadership believes its stock is undervalued.

Johnson & Johnson Stock Up 0.3 %

JNJ stock opened at $165.08 on Friday. The business’s 50-day moving average price is $169.44 and its 200-day moving average price is $174.20. The company has a quick ratio of 1.17, a current ratio of 1.42 and a debt-to-equity ratio of 0.37. Johnson & Johnson has a twelve month low of $155.72 and a twelve month high of $186.69. The stock has a market cap of $434.03 billion, a P/E ratio of 24.03, a PEG ratio of 3.07 and a beta of 0.61.

Johnson & Johnson (NYSE:JNJGet Rating) last issued its quarterly earnings data on Tuesday, July 19th. The company reported $2.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.57 by $0.02. The business had revenue of $24.02 billion for the quarter, compared to analysts’ expectations of $23.85 billion. Johnson & Johnson had a return on equity of 36.14% and a net margin of 19.21%. The company’s revenue for the quarter was up 3.0% on a year-over-year basis. During the same period in the prior year, the firm earned $2.48 EPS. On average, equities research analysts forecast that Johnson & Johnson will post 10.04 EPS for the current year.

Johnson & Johnson Announces Dividend

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

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on JNJ shares. Wells Fargo & Company raised their price target on shares of Johnson & Johnson from $190.00 to $195.00 and gave the stock an “overweight” rating in a report on Wednesday, July 13th. Morgan Stanley reduced their price target on shares of Johnson & Johnson from $174.00 to $173.00 and set an “equal weight” rating for the company in a research report on Monday. UBS Group reduced their price target on shares of Johnson & Johnson from $185.00 to $180.00 in a research report on Thursday, July 21st. SVB Leerink dropped their price objective on shares of Johnson & Johnson from $200.00 to $194.00 in a report on Wednesday, July 20th. Finally, Citigroup lowered their price target on shares of Johnson & Johnson from $205.00 to $201.00 in a report on Wednesday, July 20th. Four investment analysts have rated the stock with a hold rating, five have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, Johnson & Johnson currently has a consensus rating of “Moderate Buy” and a consensus target price of $189.78.

Johnson & Johnson Company Profile

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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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