Stock Traders Purchase Large Volume of Kenvue Call Options (NYSE:KVUE)

Key Points

• On Monday, Kenvue Inc. (NYSE:KVUE) experienced a significant increase in options trading, with traders purchasing 83,305 call options, representing a 116% increase from its average volume.
• Kenvue announced a quarterly dividend of $0.2075 per share, marking an annualized rate of $0.83 and a dividend yield of 4.5%, with a dividend payout ratio of 112.16%.
• Shares of Kenvue decreased by 1.0% to $18.44 amid trading, with a market capitalization of $35.39 billion and analysts predicting an EPS of 1.14 for the current fiscal year.

Kenvue Inc. (NYSE:KVUE - Get Free Report) was the recipient of unusually large options trading on Monday. Stock traders bought 83,305 call options on the stock. Thisisanincreaseof116% compared to the average volume of 38,564 call options.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Norges Bank acquired a new stake in Kenvue during the second quarter worth about $537,418,000. Starboard Value LP bought a new position in shares of Kenvue during the fourth quarter valued at approximately $467,864,000. Independent Franchise Partners LLP raised its position in shares of 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. lifted its holdings in shares of Kenvue by 4.9% in 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 last quarter. Finally, Third Point LLC acquired a new position in Kenvue during the 1st quarter valued at approximately $213,422,000. 97.64% of the stock is owned by institutional investors and hedge funds.

Kenvue Stock Down 1.0%

Shares of KVUE stock traded down $0.18 during trading hours on Monday, hitting $18.44. 56,118,300 shares of the company were exchanged, compared to its average volume of 18,167,412. The stock has a market capitalization of $35.39 billion, a price-to-earnings ratio of 24.92, a P/E/G ratio of 2.67 and a beta of 0.83. Kenvue has a one year low of $17.15 and a one year high of $25.17. The business's 50-day simple moving average is $21.32 and its two-hundred day simple moving average is $22.35. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.68 and a current ratio of 0.98.

Kenvue (NYSE:KVUE - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported $0.29 EPS for the quarter, topping analysts' consensus estimates of $0.28 by $0.01. The company had revenue of $3.84 billion for the quarter, compared to the consensus estimate of $3.94 billion. Kenvue had a return on equity of 20.06% and a net margin of 9.37%.Kenvue's quarterly revenue was down 4.0% compared to the same quarter last year. During the same quarter last year, the business posted $0.32 EPS. Kenvue has set its FY 2025 guidance at 1.000-1.050 EPS. Sell-side analysts predict that Kenvue will post 1.14 EPS for the current fiscal year.

Kenvue Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, August 27th. Shareholders of record on Wednesday, August 13th were issued a dividend of $0.2075 per share. This represents a $0.83 dividend on an annualized basis and a dividend yield of 4.5%. 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 currently 112.16%.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on KVUE. Barclays dropped their price objective 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. Bank of America lowered their price target on shares of Kenvue from $27.00 to $25.00 and set a "buy" rating for the company in a report on Tuesday, July 15th. UBS Group cut their price objective on shares of Kenvue from $25.00 to $23.00 and set a "neutral" rating on the stock in a report on Thursday, July 17th. JPMorgan Chase & Co. lowered their target price on Kenvue from $27.00 to $26.00 and set an "overweight" rating for the company in a research note on Friday, July 25th. Finally, Canaccord Genuity Group cut their price target on Kenvue from $29.00 to $26.00 and set a "buy" rating on the stock in a research note on Friday, August 8th. Five analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, 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.

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