Mead Johnson Nutrition Co. (MJN) Downgraded by Zacks Investment Research to Sell
According to Zacks, “Mead Johnson in last reported second-quarter 2016 witnessed a tough competitive scenario in the pediatric nutrition market which continues to be a major headwind. In emerging markets, macroeconomic turmoil in Brazil, Venezuela and Argentina spoiled whatever growth the company had achieved in Mexico and Columbia. Currency translation also remained a major challenge for the company across all regions. However Mead Johnson improved its gross margin because of lower dairy input costs. The company’s Fuel for Growth project also played a major role in improving its profitability. “
Several other brokerages have also recently weighed in on MJN. JPMorgan Chase & Co. raised shares of Mead Johnson Nutrition from a neutral rating to an overweight rating and set a $105.00 price objective on the stock in a research note on Tuesday, July 26th. Deutsche Bank AG set a $88.00 price objective on shares of Mead Johnson Nutrition and gave the stock a hold rating in a research note on Sunday, July 24th. Citigroup Inc. upped their price objective on shares of Mead Johnson Nutrition from $100.00 to $105.00 and gave the stock a buy rating in a research note on Monday, July 25th. Goldman Sachs Group Inc. reaffirmed a neutral rating and set a $96.00 price objective (up from $91.00) on shares of Mead Johnson Nutrition in a research note on Friday, July 15th. Finally, Susquehanna reaffirmed a hold rating on shares of Mead Johnson Nutrition in a research note on Sunday, July 17th. One research analyst has rated the stock with a sell rating, six have given a hold rating and six have given a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and a consensus price target of $94.83.
Mead Johnson Nutrition (NYSE:MJN) opened at 78.62 on Tuesday. The firm has a market capitalization of $14.52 billion, a P/E ratio of 29.58 and a beta of 1.26. The firm has a 50-day moving average price of $80.96 and a 200-day moving average price of $84.77. Mead Johnson Nutrition has a 52 week low of $65.53 and a 52 week high of $94.40.
Mead Johnson Nutrition (NYSE:MJN) last issued its quarterly earnings data on Thursday, July 28th. The company reported $0.88 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.78 by $0.10. The firm had revenue of $941.50 million for the quarter, compared to analysts’ expectations of $967.25 million. Mead Johnson Nutrition had a net margin of 13.28% and a negative return on equity of 194.30%. The company’s quarterly revenue was down 8.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.76 earnings per share. Equities analysts forecast that Mead Johnson Nutrition will post $3.48 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Monday, October 3rd. Investors of record on Monday, September 19th were issued a $0.4125 dividend. The ex-dividend date of this dividend was Thursday, September 15th. This represents a $1.65 annualized dividend and a yield of 2.10%. Mead Johnson Nutrition’s dividend payout ratio is currently 62.03%.
In related news, SVP Graciela Monteagudo sold 45,873 shares of the stock in a transaction that occurred on Friday, August 5th. The shares were sold at an average price of $87.64, for a total value of $4,020,309.72. Following the transaction, the senior vice president now directly owns 13,800 shares in the company, valued at $1,209,432. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Kimberly A. Casiano sold 710 shares of the stock in a transaction that occurred on Monday, August 15th. The shares were sold at an average price of $89.75, for a total transaction of $63,722.50. Following the completion of the transaction, the director now owns 7,110 shares in the company, valued at $638,122.50. The disclosure for this sale can be found here. 0.50% of the stock is currently owned by corporate insiders.
A number of institutional investors have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. raised its position in shares of Mead Johnson Nutrition by 11.3% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,287 shares of the company’s stock valued at $118,000 after buying an additional 131 shares in the last quarter. Pinkerton Retirement Specialists LLC acquired a new position in shares of Mead Johnson Nutrition during the second quarter valued at $128,000. Checchi Capital Advisers LLC raised its position in shares of Mead Johnson Nutrition by 2.5% in the second quarter. Checchi Capital Advisers LLC now owns 1,418 shares of the company’s stock valued at $129,000 after buying an additional 35 shares in the last quarter. Ingalls & Snyder LLC acquired a new position in shares of Mead Johnson Nutrition during the second quarter valued at $214,000. Finally, Enterprise Financial Services Corp raised its position in shares of Mead Johnson Nutrition by 21,645.5% in the second quarter. Enterprise Financial Services Corp now owns 2,392 shares of the company’s stock valued at $217,000 after buying an additional 2,381 shares in the last quarter. Institutional investors and hedge funds own 96.93% of the company’s stock.
Mead Johnson Nutrition Company Profile
Mead Johnson Nutrition Company (Mead Johnson) is a pediatric nutrition company. The Company manufactures, distributes and sells infant formulas, children’s nutrition and other nutritional products. The Company operates through three segments: Asia, North America/Europe and Latin America. Its product portfolio includes routine and specialty infant formulas, children’s milks and milk modifiers, dietary supplements for pregnant and breastfeeding mothers, pediatric vitamins, and products for pediatric metabolic disorders.
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