Sachem Head Capital Management LP Sells 27,220,000 Shares of Kenvue Inc. $KVUE

Key Points

• Sachem Head Capital Management cut its Kenvue stake by 89.2% in the fourth quarter, selling 27.22 million shares and leaving it with 3.31 million shares valued at about $57.1 million.
• Kenvue’s recent earnings beat expectations, reporting $0.32 EPS versus the $0.27 consensus and revenue of $3.91 billion, up 4.5% year over year.
• Analyst sentiment remains mixed to cautious: the stock has an average “Hold” rating with a consensus price target of $19.33, while some firms trimmed targets and one analyst upgraded it to Strong Buy.

Sachem Head Capital Management LP decreased its holdings in Kenvue Inc. (NYSE:KVUE - Free Report) by 89.2% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 3,310,000 shares of the company's stock after selling 27,220,000 shares during the period. Kenvue comprises about 1.3% of Sachem Head Capital Management LP's investment portfolio, making the stock its 17th biggest holding. Sachem Head Capital Management LP owned 0.17% of Kenvue worth $57,098,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of KVUE. Aberdeen Group plc grew its holdings in shares of Kenvue by 84.1% in the third quarter. Aberdeen Group plc now owns 1,411,380 shares of the company's stock worth $22,914,000 after acquiring an additional 644,930 shares during the period. Oak Thistle LLC bought a new stake in shares of Kenvue in the fourth quarter worth $1,563,000. Mirae Asset Global Investments Co. Ltd. grew its holdings in shares of Kenvue by 25.8% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 410,874 shares of the company's stock worth $7,088,000 after acquiring an additional 84,219 shares during the period. SG Americas Securities LLC grew its holdings in shares of Kenvue by 3,889.9% in the fourth quarter. SG Americas Securities LLC now owns 3,075,723 shares of the company's stock worth $53,056,000 after acquiring an additional 2,998,635 shares during the period. Finally, ICICI Prudential Asset Management Co Ltd grew its holdings in shares of Kenvue by 137.9% in the third quarter. ICICI Prudential Asset Management Co Ltd now owns 452,060 shares of the company's stock worth $7,337,000 after acquiring an additional 262,000 shares during the period. Institutional investors own 97.64% of the company's stock.

Insider Activity at Kenvue

In other news, General Counsel Matthew Orlando sold 38,491 shares of the business's stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $17.66, for a total value of $679,751.06. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 1.59% of the stock is owned by insiders.

Analyst Ratings Changes

Several analysts recently commented on KVUE shares. Citigroup cut their price objective on Kenvue from $20.00 to $19.00 and set a "neutral" rating for the company in a report on Wednesday, April 15th. Barclays cut their price objective on Kenvue from $19.00 to $18.00 and set an "equal weight" rating for the company in a report on Tuesday, April 14th. UBS Group cut their price objective on Kenvue from $19.00 to $18.00 and set a "neutral" rating for the company in a report on Tuesday, April 7th. Zacks Research raised Kenvue from a "hold" rating to a "strong-buy" rating in a report on Friday, May 8th. Finally, Argus raised Kenvue to a "hold" rating in a report on Friday, March 6th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and twelve have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $19.33.

Kenvue Price Performance

Shares of Kenvue stock opened at $18.13 on Monday. The stock's 50-day simple moving average is $17.43 and its 200-day simple moving average is $17.54. Kenvue Inc. has a 52 week low of $14.02 and a 52 week high of $22.87. The company has a market capitalization of $34.80 billion, a price-to-earnings ratio of 21.32, a PEG ratio of 1.38 and a beta of 0.54. The company has a quick ratio of 0.70, a current ratio of 0.98 and a debt-to-equity ratio of 0.67.

Kenvue (NYSE:KVUE - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.32 EPS for the quarter, beating the consensus estimate of $0.27 by $0.05. Kenvue had a return on equity of 20.81% and a net margin of 10.61%.The business had revenue of $3.91 billion for the quarter, compared to the consensus estimate of $3.84 billion. During the same period in the previous year, the business earned $0.24 earnings per share. The business's revenue was up 4.5% on a year-over-year basis. As a group, analysts expect that Kenvue Inc. will post 1.16 earnings per share for the current fiscal year.

Kenvue Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, May 27th. Stockholders of record on Wednesday, May 13th were given a $0.2075 dividend. This represents a $0.83 annualized dividend and a dividend yield of 4.6%. The ex-dividend date was Wednesday, May 13th. Kenvue's payout ratio is presently 97.65%.

Kenvue Profile

Kenvue is a consumer health company that was established as a standalone, publicly traded business after separating from Johnson & Johnson. Listed on the New York Stock Exchange under the symbol KVUE, Kenvue focuses on the development, manufacture, marketing and distribution of consumer health and personal care products across a range of categories including skin and beauty care, baby care, oral care, wound care and over‑the‑counter medicines.

The company owns and markets a portfolio of widely recognized consumer brands, including names familiar to global shoppers across retail and pharmacy channels.

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