Kenvue (NYSE:KVUE) Stock Price Down 4.1% - Here's Why

Key Points

• Kenvue Inc. (NYSE:KVUE) experienced a 4.1% decline in stock price, trading at $18.20, with a trading volume 61% below its average daily volume.
• Recent analyst ratings indicate a bearish sentiment, with Zacks Research upgrading Kenvue to a "strong sell" and several firms lowering their price targets, reflecting overall caution towards the stock's future performance.
• The company recently announced a quarterly dividend increase, now at $0.2075 per share, which offers a yield of 4.6%, despite a 112.16% payout ratio.

Kenvue Inc. (NYSE:KVUE - Get Free Report)'s stock price was down 4.1% on Monday . The stock traded as low as $18.20 and last traded at $18.20. Approximately 7,145,250 shares changed hands during trading, a decline of 61% from the average daily volume of 18,328,215 shares. The stock had previously closed at $18.99.

Analyst Ratings Changes

Several equities analysts have weighed in on KVUE shares. Zacks Research upgraded shares of Kenvue to a "strong sell" rating in a report on Monday, August 11th. Royal Bank Of Canada decreased their price target on shares of Kenvue from $24.00 to $22.00 and set a "sector perform" rating on the stock in a research note on Friday, August 8th. JPMorgan Chase & Co. decreased their price target on shares of Kenvue from $27.00 to $26.00 and set an "overweight" rating on the stock in a research note on Friday, July 25th. Bank of America decreased their price target on shares of Kenvue from $27.00 to $25.00 and set a "buy" rating on the stock in a research note on Tuesday, July 15th. Finally, Barclays decreased their price target on shares of Kenvue from $23.00 to $22.00 and set an "equal weight" rating on the stock in a research note on Tuesday, July 15th. Five equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $24.21.

Kenvue Price Performance

The company's 50-day moving average is $21.09 and its 200-day moving average is $22.19. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.98 and a quick ratio of 0.68. The firm has a market capitalization of $34.94 billion, a price-to-earnings ratio of 24.61, a PEG ratio of 2.73 and a beta of 0.83.

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

Kenvue Increases Dividend

The firm also recently declared 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 represents a $0.83 dividend on an annualized basis and a yield of 4.6%. This is a positive change from Kenvue's previous quarterly dividend of $0.21. The ex-dividend date of this dividend was Wednesday, August 13th. Kenvue's dividend payout ratio is presently 112.16%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Cambridge Investment Research Advisors Inc. lifted its position in Kenvue by 4.0% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 106,140 shares of the company's stock valued at $2,545,000 after buying an additional 4,034 shares in the last quarter. IFP Advisors Inc grew its holdings in Kenvue by 25.3% during the 1st quarter. IFP Advisors Inc now owns 15,278 shares of the company's stock valued at $369,000 after purchasing an additional 3,081 shares in the last quarter. Vident Advisory LLC purchased a new stake in Kenvue during the 1st quarter worth $520,000. Starboard Value LP acquired a new position in Kenvue in the 4th quarter worth $467,864,000. Finally, FORA Capital LLC purchased a new position in Kenvue in the 1st quarter valued at about $981,000. 97.64% of the stock is owned by institutional investors and hedge funds.

About Kenvue

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.

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