Kenvue Sees Unusually Large Options Volume (NYSE:KVUE)

Key Points

• Kenvue Inc. experienced a significant increase in options trading, with 111,780 call options purchased, marking a 285% rise compared to the average daily volume.
• Various analysts have downgraded Kenvue's target prices, with the consensus now at $24.79 and a current average rating of "Hold" from seven analysts, while five maintain a "Buy" rating.
• The company announced an increase in its quarterly dividend to $0.2075 per share, reflecting a dividend yield of 3.9% despite a high payout ratio of 150.91%.

Kenvue Inc. (NYSE:KVUE - Get Free Report) was the recipient of some unusual options trading on Wednesday. Stock investors acquired 111,780 call options on the company. Thisrepresentsanincreaseofapproximately285% compared to the typical daily volume of 29,027 call options.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. Bank of America lowered their target price on Kenvue from $27.00 to $25.00 and set a "buy" rating for the company in a report on Tuesday, July 15th. JPMorgan Chase & Co. decreased their price objective on Kenvue from $27.00 to $26.00 and set an "overweight" rating for the company in a report on Friday, July 25th. Redburn Atlantic initiated coverage on Kenvue in a report on Thursday, April 10th. They issued a "neutral" rating and a $23.50 price objective for the company. Citigroup decreased their price objective on Kenvue from $24.50 to $22.00 and set a "neutral" rating for the company in a report on Tuesday, July 15th. Finally, UBS Group decreased their price objective on Kenvue from $25.00 to $23.00 and set a "neutral" rating for the company in a report on Thursday, July 17th. Seven equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $24.79.

Kenvue Price Performance

Shares of Kenvue stock traded down $0.14 during trading on Wednesday, reaching $21.51. The company's stock had a trading volume of 18,542,668 shares, compared to its average volume of 17,387,996. The stock has a 50-day moving average price of $21.75 and a two-hundred day moving average price of $22.40. The stock has a market capitalization of $41.26 billion, a P/E ratio of 39.16, a price-to-earnings-growth ratio of 3.72 and a beta of 0.83. The company has a current ratio of 0.86, a quick ratio of 0.60 and a debt-to-equity ratio of 0.63. Kenvue has a one year low of $19.75 and a one year high of $25.17.

Kenvue (NYSE:KVUE - Get Free Report) last issued its quarterly earnings results on Thursday, May 8th. The company reported $0.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.23 by $0.01. The business had revenue of $3.74 billion for the quarter, compared to analyst estimates of $3.69 billion. Kenvue had a return on equity of 20.87% and a net margin of 6.90%. The firm's revenue for the quarter was down 3.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.28 earnings per share. As a group, sell-side analysts anticipate that Kenvue will post 1.14 EPS for the current fiscal year.

Kenvue Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 27th. Shareholders of record on Wednesday, August 13th will be paid a $0.2075 dividend. The ex-dividend date of this dividend is Wednesday, August 13th. This represents a $0.83 annualized dividend and a dividend yield of 3.9%. This is a positive change from Kenvue's previous quarterly dividend of $0.21. Kenvue's dividend payout ratio (DPR) is 150.91%.

Institutional Investors Weigh In On Kenvue

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Cambridge Investment Research Advisors Inc. boosted its holdings in shares of Kenvue by 4.0% in the 1st 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 during the last quarter. IFP Advisors Inc grew its position in shares of Kenvue by 25.3% in the 1st quarter. IFP Advisors Inc now owns 15,278 shares of the company's stock valued at $369,000 after acquiring an additional 3,081 shares during the period. Starboard Value LP acquired a new position in shares of Kenvue during the 4th quarter worth about $467,864,000. Kingswood Wealth Advisors LLC bought a new stake in shares of Kenvue in the 1st quarter valued at about $413,000. Finally, Cooper Investors PTY Ltd. lifted its stake in Kenvue by 39.7% in the 1st quarter. Cooper Investors PTY Ltd. now owns 858,076 shares of the company's stock valued at $20,577,000 after purchasing an additional 244,043 shares during the last quarter. Institutional investors and hedge funds own 97.64% of the company's stock.

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.

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