Johnson and Johnson stock (NYSE: JNJ): is it heading for a split?

Summary

  • Johnson and Johnson offered stock split five times in the past.
  • The company reported sales of US$22.3 billion in Q1, 2021, up 1.9 percent YoY.
  • A stock split is when companies divide the existing shares into multiple stocks to boost liquidity.

Many investors and experts are curious to know whether Johnson & Johnson (NYSE: JNJ) shares are heading for a stock split. However, the company, engaged in manufacturing medical devices, pharmaceuticals, and consumer products, hasn’t officially announced a stock split offer yet.

The company’s strong financials due to the robust sales of its Covid-19 vaccine is one of the reasons why some people may have speculated a stock split possibility.

What is JNJ’s stock split history?

The company, valued at US$444.4 billion, had in the past offered stock splits seven times. Its stock split history began in 1958 when it offered 2.5:1 shares. In 1970, it offered one stock for three shares. Again in 1981, it offered a 3:1 stock split. It also offered a 2:1 stock split in 1989, 1992, and 1996. Latest in 2001, it offered a 2:1 stock split, after its strong financial results.

A stock split is when companies divide the existing shares into multiple stocks to increase liquidity. Though the number of shares goes up, their value remains the same. 



Source: Pixabay.

Also read: Third shot of COVID-19 vaccine: Pfizer to seek US authorization

Company financials

JNJ stock traded at US$168.86 at 11.34 am ET on July 15, down 0.91 percent over the previous closing price. JNJ’s stock price surged 7.89 percent YTD and 13.89 percent YoY.

The P/E ratio and forward P/E 1 year are 20.84 and 17.92, respectively. Earnings per share are US$5.66, and annualized dividend is US$4.24. The current yield and beta are 2.5 percent and 0.72, respectively. JNJ’s 52-week highest stock price is US$173.65, and the lowest is US$133.65.

The company reported sales of US$22.3 billion in Q1, 2021, 1.9 percent up over US$20.6 billion of Q1, 2020. The company’s net earnings were US$6.1 billion, 6.9 percent up from US$5.7 billion of Q1, 2020. Its earnings per share were US$2.32, up by 6.9 percent from US$2.17 of Q1, 2020. The company will announce its Q2 earnings reports on July 21.

The company is expected to generate US$19.2 billion in revenue in the fiscal year 2021, thanks to its Covid-19 vaccine that has proven 94 percent efficient. As per recent reports, the vaccine is efficient against the new Delta variant as well.

The company’s revenue through vaccines in Q1 this year was US$1.73 billion, and it also received grants of U$194 million. The company will produce 800 million - one billion doses of the covid vaccine this year.


Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.


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