Third Point LLC Buys Shares of 8,900,000 Kenvue Inc. $KVUE

Key Points

• Third Point LLC acquired 8,900,000 shares of Kenvue Inc. worth approximately $213 million, making it the firm's 10th largest holding.
• Kenvue's most recent earnings report showed earnings of $0.29 per share, slightly beating estimates, but revenue declined by 4% year-over-year.
• In addition to the earnings report, Kenvue announced a quarterly dividend increase, now at $0.2075, representing a yield of 4.5%.

Third Point LLC acquired a new stake in Kenvue Inc. (NYSE:KVUE - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm acquired 8,900,000 shares of the company's stock, valued at approximately $213,422,000. Kenvue comprises approximately 3.3% of Third Point LLC's investment portfolio, making the stock its 10th largest position. Third Point LLC owned approximately 0.46% of Kenvue at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Cambridge Investment Research Advisors Inc. raised its holdings in shares of Kenvue by 4.0% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 106,140 shares of the company's stock worth $2,545,000 after buying an additional 4,034 shares during the period. IFP Advisors Inc raised its holdings in shares of Kenvue by 25.3% in the first quarter. IFP Advisors Inc now owns 15,278 shares of the company's stock worth $369,000 after buying an additional 3,081 shares during the period. Vident Advisory LLC purchased a new stake in shares of Kenvue in the first quarter worth approximately $520,000. Starboard Value LP purchased a new stake in shares of Kenvue in the fourth quarter worth approximately $467,864,000. Finally, Kingswood Wealth Advisors LLC purchased a new stake in shares of Kenvue in the first quarter worth approximately $413,000. 97.64% of the stock is currently owned by hedge funds and other institutional investors.

Kenvue Trading Up 2.6%

KVUE traded up $0.47 during trading on Tuesday, hitting $18.90. 39,516,199 shares of the stock were exchanged, compared to its average volume of 21,148,226. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.68 and a current ratio of 0.98. The firm has a market cap of $36.27 billion, a price-to-earnings ratio of 25.54, a P/E/G ratio of 2.65 and a beta of 0.83. The firm has a 50 day simple moving average of $21.28 and a 200 day simple moving average of $22.33. Kenvue Inc. has a 1 year low of $17.15 and a 1 year high of $25.17.

Kenvue (NYSE:KVUE - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported $0.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.28 by $0.01. The business had revenue of $3.84 billion for the quarter, compared to analysts' expectations of $3.94 billion. Kenvue had a return on equity of 20.06% and a net margin of 9.37%.The business's revenue for the quarter was down 4.0% on a year-over-year basis. During the same quarter last year, the firm earned $0.32 EPS. Kenvue has set its FY 2025 guidance at 1.000-1.050 EPS. As a group, equities analysts expect that Kenvue Inc. will post 1.14 EPS for the current year.

Kenvue Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, August 27th. Shareholders of record on Wednesday, August 13th were given a dividend of $0.2075 per share. This is a boost from Kenvue's previous quarterly dividend of $0.21. The ex-dividend date of this dividend was Wednesday, August 13th. This represents a $0.83 annualized dividend and a yield of 4.4%. Kenvue's payout ratio is 112.16%.

Wall Street Analysts Forecast Growth

KVUE has been the topic of several recent analyst reports. JPMorgan Chase & Co. reduced their price target on Kenvue from $27.00 to $26.00 and set an "overweight" rating on the stock in a report on Friday, July 25th. Citigroup reduced their price target on Kenvue from $24.50 to $22.00 and set a "neutral" rating on the stock in a report on Tuesday, July 15th. Royal Bank Of Canada reduced their price target on Kenvue from $24.00 to $22.00 and set a "sector perform" rating on the stock in a report on Friday, August 8th. Zacks Research upgraded Kenvue to a "strong sell" rating in a report on Monday, August 11th. Finally, Canaccord Genuity Group reduced their price objective on Kenvue from $29.00 to $26.00 and set a "buy" rating on the stock in a report on Friday, August 8th. Five equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $24.21.

Kenvue Company Profile

Kenvue Inc operates as a consumer health company worldwide. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation, eye care, and other products under the Tylenol, Motrin, Benadryl, Nicorette, Zarbee's, ORSLTM, Rhinocort, Calpol, and Zyrtec brands.