Kenvue Target of Unusually Large Options Trading (NYSE:KVUE)

Key Points

• Kenvue Inc. experienced a surge in put options trading, with an increase of approximately 217% from the typical volume, indicating heightened interest or concern among traders.
• Institutional investors hold 97.64% of Kenvue's shares, with Norges Bank and Starboard Value LP making significant new acquisitions during recent quarters.
• Kenvue announced a quarterly dividend of $0.2075, a slight increase from the previous dividend, resulting in an annualized yield of 3.9%.

Kenvue Inc. (NYSE:KVUE - Get Free Report) was the target of some unusual options trading on Thursday. Stock traders purchased 105,856 put options on the stock. Thisisanincreaseofapproximately217% compared to the typical volume of 33,402 put options.

Hedge Funds Weigh In On Kenvue

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in KVUE. Norges Bank acquired a new stake in Kenvue during the 2nd quarter worth about $537,418,000. Starboard Value LP acquired a new stake in Kenvue during the 4th quarter worth about $467,864,000. Independent Franchise Partners LLP grew its position in Kenvue by 233.4% during the 2nd quarter. Independent Franchise Partners LLP now owns 31,265,574 shares of the company's stock worth $654,388,000 after purchasing an additional 21,886,537 shares during the period. Vanguard Group Inc. grew its position in Kenvue by 4.9% during the 1st quarter. Vanguard Group Inc. now owns 229,144,387 shares of the company's stock worth $5,494,882,000 after purchasing an additional 10,600,682 shares during the period. Finally, Third Point LLC acquired a new stake in Kenvue during the 1st quarter worth about $213,422,000. Hedge funds and other institutional investors own 97.64% of the company's stock.

Kenvue Trading Down 2.8%

NYSE:KVUE traded down $0.60 during midday trading on Thursday, hitting $21.11. The stock had a trading volume of 10,550,175 shares, compared to its average volume of 17,561,002. Kenvue has a one year low of $19.75 and a one year high of $25.17. The company has a market capitalization of $40.51 billion, a price-to-earnings ratio of 28.50, a PEG ratio of 3.15 and a beta of 0.83. The stock has a 50-day moving average of $21.56 and a 200 day moving average of $22.42. The company has a quick ratio of 0.68, a current ratio of 0.98 and a debt-to-equity ratio of 0.66.

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. As a group, sell-side analysts forecast that Kenvue will post 1.14 EPS for the current year.

Kenvue Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 27th. Investors of record on Wednesday, August 13th will be paid a $0.2075 dividend. This is a positive change from Kenvue's previous quarterly dividend of $0.21. The ex-dividend date is Wednesday, August 13th. This represents a $0.83 dividend on an annualized basis and a yield of 3.9%. Kenvue's dividend payout ratio (DPR) is 110.81%.

Analyst Upgrades and Downgrades

Several analysts have issued reports on KVUE shares. Bank of America cut their price target on Kenvue from $27.00 to $25.00 and set a "buy" rating for the company in a report on Tuesday, July 15th. Royal Bank Of Canada lowered 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. Barclays dropped their price target on Kenvue from $23.00 to $22.00 and set an "equal weight" rating for the company in a research note on Tuesday, July 15th. Citigroup cut their price objective on shares of Kenvue from $24.50 to $22.00 and set a "neutral" rating for the company in a report on Tuesday, July 15th. Finally, JPMorgan Chase & Co. lowered their target price on shares of Kenvue from $27.00 to $26.00 and set an "overweight" rating on the stock in a report on Friday, July 25th. Seven investment analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $24.38.

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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