Johnson & Johnson experiences unusually high options volume (NYSE:JNJ)

The volume of options trading activity for Johnson & Johnson (NYSE:JNJ) was particularly high on Tuesday. This activity has been observed. Stock market participants bought 33,965 call options on the underlying stock. This represents a 16% increase in trades from the typical volume of 29,198 call options traded.

On Tuesday, October 18, the latest quarterly earnings report from Johnson & Johnson (NYSE: JNJ) was made available to the public. The company reported earnings per share (EPS) for the period at $2.55, $0.06 higher than analysts’ consensus estimate of $2.49. Johnson & Johnson had a return on equity of 36.14% and its net margin was 19.21%. These two figures are very impressive. The company’s sales for the quarter were $23.79 billion, lower than analysts’ projections of $23.44 billion before the quarter began. During the same period a year earlier, the company reported earnings of $2.60 per share. The most recent quarterly report reveals that there was a 1.9% increase in revenue on an annual basis. Sell-side analysts expect Johnson & Johnson to earn $9.96 per share in the current fiscal year. This estimate was derived from historical data.
As of noon during Tuesday’s trading session, the price of NYSE:JNJ fell $0.71, taking it to a new all-time low of $165.88. The company’s share count totaled 439,488, significantly lower than its typical volume of 7,068,923 shares. Johnson & Johnson’s current stock price is $186.69, which is above its 52-week low of $155.72 but below its 52-week high of $186.69. The ratio of current assets to total assets is 1.42, the ratio of quick assets to current assets is 1.17 and the ratio of total assets to current assets is 0.37. The 50-day simple moving average for this security is $165.04 and the 200-day simple moving average is $172.87. The company has a price/earnings ratio of 24.05, a price/earnings/growth ratio of 3.15 and a beta value of 0.56. The company’s market capitalization currently stands at $436.13 billion.
Several studies by research analysts on Johnson & Johnson have been made public. In a research note published on Wednesday, July 20, SVB Leerink reduced its price target on Johnson & Johnson shares from $200.00 to $194.00. Citigroup announced on Wednesday (October 5th) that it had lowered its price target on Johnson & Johnson shares from $201.00 to $198.00. The announcement was made in a research note published that day. In a research note distributed on July 13, Wells Fargo & Company announced that it was raising its price target for Johnson & Johnson stock from $190.00 to $195.00 and raising its rating from “overweight” to Johnson & Johnson. Both of these changes were made in conjunction with Johnson & Johnson. Barclays began covering the Johnson & Johnson stock with the publication of a research note on Monday, which marked the start of the bank’s coverage of the stock. They assigned an “equal weight” rating to the title and predicted that it will reach $175.00 in price. In a research note distributed Friday, Bank of America lowered its price target on Johnson & Johnson stock from $185.00 per share to $178.00 per share and assigned a “neutral” rating to the stock. A “neutral” rating was also assigned to the stock by Bank of America. The stock has been recommended by five equity research analysts, a buy rating by five analysts, and a strong buy rating by one analyst. Five equity research analysts gave the stock a hold rating. The company is currently rated as having a “moderate buy” consensus recommendation, and Bloomberg.com reports that the company’s price target is currently rated as having a consensus value of $187.18.
On September 14, Johnson & Johnson publicly announced that the company’s board of directors had given its approval to a share buyback plan that allows the company to repurchase up to $5 billion in stock. Board approval of the plan allows the company to repurchase up to $5 billion in stock. Since this repurchase authorization was implemented, the company now has the power to buy up to 1.2% of its shares on the open market. This authority was not present before the implementation of this buy-back authorisation. When a company says it wants to buy back its shares, it usually means the board thinks the stock price should drop.

Recent events have caused several institutional investors and hedge funds to adjust the percentage of company shares they hold. During the third quarter, Community Bank of Raymore increased its stake in Johnson & Johnson by a total of 27.6%. Community Bank of Raymore now owns a total of 6,935 shares, valued at $1,130,000 following the successful completion of the transaction, which resulted in an additional 1,500 shares. During the third quarter of 2018, Access Financial Services Inc. increased the percentage of Johnson & Johnson shares it held by 3.1%. After purchasing an additional 347 shares during the relevant period, Access Financial Services Inc. now owns 11,436 shares of the company, with a combined value of $1,868,000. This brings the total number of shares held by the company to 11,436. During the third quarter, Clearview Wealth Advisors, LLC achieved a 2.3% increase in the number of Johnson & Johnson shares comprising all of its assets. Clearview Wealth Advisors LLC now owns a total of 5,567 shares of the company, which are worth $910,000 after purchasing 123 additional shares during the reporting period. This brings the total number of shares held by the company to 5,567. During the third quarter, Regent Investment Management LLC added an additional 1.1% of Johnson & Johnson shares to its holdings, bringing the total percentage of shares of the company which she held at 99.9%. After purchasing an additional 684 shares during the reporting period, Regent Investment Management LLC now owns 62,211 shares of the company, giving the holdings a value of $10,162,000. During the relevant period, these shares were acquired. Last but not least, Investment Research & Advisory Group Inc. increased the number of Johnson & Johnson shares it owns by 1.1% during the third quarter of this fiscal year. Investment Research & Advisory Group Inc. now owns 15,144 shares of the company, valued at $2,474,000 after purchasing an additional 163 shares of the company during the period in question. Most of the company’s shares are held by institutional shareholders, who represent 68.59% of the total.

With its many different subsidiaries, Johnson & Johnson is responsible for the research, development, production and distribution of a wide assortment of medical products worldwide. The Company’s consumer health division sells oral care products under the LISTERINE brand, baby care products under the JOHNSON’S and AVEENO Baby brands, and skin care products under the AVEENO, CLEAN & CLEAR and DR. marks, respectively. These brands are used for products that care for your teeth, your baby, and your skin in that order.

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