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A member of the 30-share Dow Jones Industrial Indices and a weighted component of the S&P 500, Johnson & Johnson (NYSE: JNJ) It is a stock that attracts the attention of investors.
The stock has struggled to break out of the correction that began last April. It formed a cup-shaped pattern that appeared to have added a handle, reaching a provisional high of $181.04 before breaking out on Jan. 9 at 12.00. Passed within cent.
The stock broke through the 50-day average on Jan. 9 and closed Tuesday 0.6% below the 200-day line.
This isn’t good news in the short term, but investors are unlikely to rush into a blue-chip institutional stock exit like Johnson & Johnson, which has a market cap of $450.63 billion. . It is his ninth-largest component of the S&P 500 and second-largest. UnitedHealth Group Incorporated (NYSE: UNH) in the S&P Healthcare division.
Shares of Johnson & Johnson fell 3.78% last week. The company has confirmed some news it had previously been told: it is curtailing production of a Covid-19 vaccine that was created by a competitor but failed to gain popularity. Pfizer (NYSE: PFE) When Moderna, Inc. (NASDAQ: MRNA).
Pharmaceutical contract manufacturer at the beginning of the month Emergent BioSolutions Inc. (NYSE: EBS) He said he would restructure and lay off employees to improve performance. Emergent said he was the manufacturer of J&J’s Covid vaccine, but in 2020 he made a big headline mistake that the ingredients in J&J’s vaccine were mixed with those ingredients. AstraZeneca PLC (NASDAQ: AZN).
AstraZeneca’s vaccine was soon manufactured elsewhere, and the US government eventually terminated the contract with Emergent.
Emergent says it has $420 million in debt.
Emergent now says J&J owes as much as $420 million for breach of contract.
Last week, there was another fairly significant piece of Johnson & Johnson company-specific news. Fate Therapeutics Inc. (NASDAQ: FATE) The J&J business unit has terminated its contract with Janssen Biotech, which was initially advertised as having $3 billion in potential revenue. The agreement, signed in 2020, was established to co-develop cancer treatments.
In announcing the end of the deal, Fate CEO Scott Wolchko said, “We regret that we were unable to reach an agreement with Janssen on their proposal to continue our collaboration.”
San Diego-based Fate Therapeutics develops immunotherapies to treat cancer. Following the news, the company’s stock price fell more than 61% of his.
J&J shares fell 2.5% on Jan. 9. Speaking at his JP Morgan Healthcare Conference today, CEO Joaquin Duato said the company is exploring merger and acquisition opportunities in the fields of orthopedics and cardiovascular, surgical robotics, and eye care. .
The company last month acquired heart device maker Abiomed for $16.6 billion.
Spin-off of the Consumer Products Division
Johnson & Johnson is spinning off its consumer healthcare division (think products like Band-Aid, Neutrogena, Listerine, and Tylenol). The new business is called Kenvue and trades on the Nasdaq under the ticker KVUE.
Kenvue has filed regulatory documents for its IPO, but there is no price date yet.
J&J said it expects the spin-off to be completed by November of this year. His current J&J shareholders will continue to own their shares, but will receive Kenvue shares.
At the time of the spin-off announcement, J&J said it “expects overall shareholder dividends to remain at least at the same level following the closing of the transaction.”
Dividends are the main reason investors are drawn to established large-cap stocks like J&J. The company has a long history of paying and increasing dividends, making it an attractive holding even during market downturns when dividend payments can offset falling prices.
J&J currently yields 2.62%, as MarketBeat data shows.
The company is set to report fourth-quarter results on Jan. 24, before it opens, with Wall Street expecting net income of $2.22 per share on sales of $23.91 billion.
That is, the top line decreases and the bottom line increases.
Listen to this before considering Johnson & Johnson.
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