Is JNJ stock splitting?
Although Johnson & Johnson has no upcoming stock split, the company plans to split into two by spinning off its consumer business (Kenvue) in November 2023.
What does the J&J split mean for shareholders? If you currently own shares of Johnson & Johnson, when the company splits, you will own shares of both Johnson & Johnson – which will be the new pharmaceutical/medical device business – as well as shares of Kenvue, the new consumer health business.
NEW BRUNSWICK, N.J., August 16, 2023 -- Johnson & Johnson (NYSE: JNJ) today announced the final exchange ratio for its previously announced split-off exchange offer to Johnson & Johnson shareholders to exchange their shares of Johnson & Johnson for shares of common stock of Kenvue Inc.
J&J holders can swap all, some, or none of their shares. If holders do nothing, they will keep all of their J&J stock. This differs from a spinoff, in which holders of the parent company's stock automatically get shares of the spinoff company.
Pursuant to the exchange offer, Johnson & Johnson has accepted 190,955,436 shares of Johnson & Johnson common stock in exchange for 1,533,830,450 shares of Kenvue common stock.
Under the terms of the exchange offer, 8.0324 shares of Kenvue common stock will be exchanged for each share of Johnson & Johnson common stock accepted in the exchange offer.
Key Points. Kenvue is a fairly safe stock, thanks to its consistent sales of critical goods. However, it doesn't have many opportunities to expand more rapidly than it is now. Inflation could also be a threat in the near term.
Although Johnson & Johnson has no upcoming stock split, the company plans to split into two by spinning off its consumer business (Kenvue) in November 2023. When that happens, investors will receive shares of Kenvue in addition to their Johnson & Johnson stock.
shares through a roughly $40 billion split-off, whereby some investors chose to trade in their shares of J&J for Kenvue ones. The moves marked the conclusion of a multiyear effort, a plan decided upon in 2019 and put into action in 2021 when J&J embarked on untangling its finances and operations for such a split.
Johnson & Johnson said it planned to complete the breakup within two years. Executives described the move as an effort to better focus on and to expand two very different types of businesses. “We must continually be evolving our business to provide value today, tomorrow and in the decades ahead,” Mr.
Should you buy JNJ stock?
Valuation metrics show that Johnson & Johnson may be undervalued. Its Value Score of B indicates it would be a good pick for value investors. The financial health and growth prospects of JNJ, demonstrate its potential to outperform the market. It currently has a Growth Score of D.
Based on analysts offering 12 month price targets for JNJ in the last 3 months. The average price target is $178.85 with a high estimate of $215 and a low estimate of $160.
| Holder | Shares | Date Reported |
|---|---|---|
| Vanguard Group Inc | 229,387,671 | Dec 30, 2023 |
| Blackrock Inc. | 186,308,341 | Dec 30, 2023 |
| State Street Corporation | 132,904,295 | Dec 30, 2023 |
| Geode Capital Management, LLC | 51,256,785 | Dec 30, 2023 |
What happens to JNJ stock when the company splits? Once Johnson and Johnson splits, JNJ stock will only give traders and investors exposure to the medical device and pharmaceutical proceeds of the company.
The exchange offer, unveiled on July 24, expired on August 18 and let J&J shareholders trade some of their J&J holdings in exchange for Kenvue shares. Kenvue debuted on the New York Stock Exchange in early May for $22 per share, representing the largest IPO in U.S. markets in more than a year, CNBC reported.
Largest shareholders include Johnson & Johnson, Vanguard Group Inc, Fmr Llc, Price T Rowe Associates Inc /md/, BlackRock Inc., State Street Corp, Wellington Management Group Llp, Massachusetts Financial Services Co /ma/, Jpmorgan Chase & Co, and Bank Of America Corp /de/ . Kenvue Inc.
Per Barron's, J&J offered roughly $107.50 in KVUE stock for $100 in JNJ stock shares as an incentive to J&J shareholders. To take advantage of the approximate 7% discount on KVUE stock, arbitragers had been buying JNJ stock and selling short KVUE. With this activity over, KVUE popped higher while JNJ suffered red ink.
Stock Price Forecast
The 12 analysts with 12-month price forecasts for Kenvue stock have an average target of 25.25, with a low estimate of 20 and a high estimate of 30.
The average price target for Kenvue, Inc. is $22.75. This is based on 8 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $25.00 ,the lowest forecast is $20.00.
Kenvue Inc. stock forecast for 2025: $ 19.06 (-6.55%) Kenvue Inc. stock prediction for 2030: $ 13.59 (-33.38%)
Will Kenvue pay dividends?
Kenvue Inc. ( KVUE ) pays dividends to its shareholders. How much is Kenvue Inc.'s dividend? Kenvue Inc.'s ( KVUE ) quarterly dividend per share was $0.20 as of February 28, 2024 .
These well-established brands have demonstrated a robust market presence, as reflected in the company's recent financial performance. In the most recent quarter ending in September 2023, the company generated approximately $3.91 billion in quarterly revenue, up about 3.3% from last year.
Does it matter to buy before or after a stock split? If you buy a stock before it splits, you'll pay more per share than what it'll cost after it splits. If you're looking to buy into a stock at a cheaper price, you may want to wait until after the stock split.
Johnson & Johnson (Symbol: JNJ) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying a stock with above-average ''DividendRank'' statistics including a strong 3.0% yield, as well as a superb track record of at least two decades of dividend growth, according to the most recent ''DividendRank'' report.
A stock split increases the number of shares outstanding and lowers the individual value of each share. While the number of shares outstanding change, the overall market capitalization of the company and the value of each shareholder's stake remains the same. Say you have one share of a company's stock.
