Stocks

Zacks Investment Management Increases Stake in Johnson & Johnson

Published December 7, 2024

Zacks Investment Management has announced a significant increase in its investment in Johnson & Johnson (NYSE:JNJ). In its latest Form 13F filing with the Securities and Exchange Commission (SEC), the firm revealed that it raised its holdings by 10.7% during the 3rd quarter. After acquiring an additional 92,586 shares, Zacks now owns a total of 956,443 shares of Johnson & Johnson.

As of the latest filing, Johnson & Johnson represents 1.3% of Zacks Investment Management's total holdings, making it the firm's 15th largest position. The value of Zacks' investment in the healthcare giant is approximately $155 million.

Other institutional investors have also made recent adjustments to their Johnson & Johnson portfolios. For instance, Vinva Investment Management Ltd increased its stake by 6.8%, now holding 111,448 shares valued at about $18 million after adding 7,110 shares last quarter. Similarly, Financial Counselors Inc. raised its position by 5.3%, bringing its total to 185,093 shares, valued at nearly $30 million after purchasing an additional 9,309 shares.

Moreover, Meridian Financial Partners LLC took on a new position in Johnson & Johnson worth $1.6 million in the previous quarter. Meridian Investment Counsel Inc. increased its stake significantly by 19.6%, now owning 22,629 shares valued at around $3.67 million after adding 3,710 shares. Lastly, Charles Schwab Investment Management Inc. raised its investment by 0.6%, now holding about 17.6 million shares valued at approximately $2.86 billion as a result of an additional acquisition of 102,502 shares.

Overall, approximately 69.55% of Johnson & Johnson's stock is now held by hedge funds and institutional investors.

Current Stock Performance

On Friday, Johnson & Johnson's stock opened at $149.28. The company boasts a market capitalization of approximately $359.41 billion, with a price-to-earnings (PE) ratio of 21.60 and a price-to-earnings growth (PEG) ratio of 2.67. Over the past year, the stock has hit a low of $143.13 and a high of $168.85, with its 50-day and 200-day moving averages currently at $158.33 and $156.36, respectively.

Latest Earnings Report

Johnson & Johnson recently released its quarterly earnings report on October 15, reporting earnings of $2.42 per share, exceeding analysts' expectations of $2.21 by $0.21. The company's revenue for the quarter was $22.47 billion, surpassing the estimated $22.17 billion. Johnson & Johnson showed a net margin of 19.14% and a return on equity of 35.45%, with a year-over-year revenue increase of 5.2%. However, the earnings per share for the same quarter last year were $2.66.

Dividend Announcement

The company has also declared a quarterly dividend of $1.24, set to be paid on December 10. Shareholders on record as of November 26 will be eligible for this dividend, reflecting an annual payout of $4.96 with a yield of 3.32%. Johnson & Johnson's payout ratio stands at 71.78%.

Analyst Ratings Update

Several research firms have updated their ratings for Johnson & Johnson recently. Guggenheim raised its price target from $156.00 to $162.00, maintaining a "neutral" rating. Wells Fargo lifted their price target from $163.00 to $166.00, also assigning an "equal weight" rating. StockNews.com upped its rating from "buy" to "strong-buy," and Morgan Stanley increased its target from $169.00 to $175.00, continuing with an "equal weight" rating. Additionally, Citigroup raised its target from $180.00 to $185.00 and maintained a "buy" rating. In total, 7 analysts have issued hold ratings, 7 have buy ratings, and 1 has given a strong buy rating, resulting in an average rating of "Moderate Buy" and a price target of $175.67 according to MarketBeat.com.

Company Overview

Johnson & Johnson is a global leader in healthcare, with subsidiaries involved in researching, developing, manufacturing and selling various products. The company’s Innovative Medicine segment focuses on treatments for multiple therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, and cardiovascular health.

Investment, Stocks, Management