Mead Johnson Nutrition Co. (NYSE:MJN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
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 research firms have also commented on MJN. JPMorgan Chase & Co. raised Mead Johnson Nutrition from a “neutral” rating to an “overweight” rating and set a $105.00 price target on the stock in a research report on Tuesday, July 26th. Deutsche Bank AG set a $88.00 price target on Mead Johnson Nutrition and gave the stock a “hold” rating in a research report on Sunday, July 24th. Citigroup Inc. boosted their price target on Mead Johnson Nutrition from $100.00 to $105.00 and gave the stock a “buy” rating in a research report on Monday, July 25th. Goldman Sachs Group Inc. reissued a “neutral” rating and set a $96.00 price target (up from $91.00) on shares of Mead Johnson Nutrition in a research report on Friday, July 15th. Finally, Susquehanna reissued a “hold” rating on shares of Mead Johnson Nutrition in a research report on Sunday, July 17th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and six have issued a buy rating to the company. Mead Johnson Nutrition has a consensus rating of “Hold” and a consensus price target of $94.83.
Mead Johnson Nutrition (NYSE:MJN) opened at 79.11 on Tuesday. The stock’s 50 day moving average is $80.72 and its 200-day moving average is $84.73. The stock has a market capitalization of $14.61 billion, a price-to-earnings ratio of 29.76 and a beta of 1.26. Mead Johnson Nutrition has a 12 month low of $65.53 and a 12 month high of $94.40.
Mead Johnson Nutrition (NYSE:MJN) last released its quarterly earnings results on Thursday, July 28th. The company reported $0.88 EPS for the quarter, topping the consensus estimate of $0.78 by $0.10. The firm had revenue of $941.50 million for the quarter, compared to analyst estimates of $967.25 million. Mead Johnson Nutrition had a negative return on equity of 194.30% and a net margin of 13.28%. Mead Johnson Nutrition’s revenue for the quarter was down 8.8% on a year-over-year basis. During the same period in the previous year, the company posted $0.76 EPS. On average, equities research analysts expect that Mead Johnson Nutrition will post $3.48 earnings per share for the current year.
The company also recently declared a quarterly dividend, which was paid on Monday, October 3rd. Investors of record on Monday, September 19th were given a dividend of $0.4125 per share. This represents a $1.65 annualized dividend and a dividend yield of 2.09%. The ex-dividend date was Thursday, September 15th. Mead Johnson Nutrition’s dividend payout ratio is currently 62.03%.
In related news, Director Kimberly A. Casiano sold 710 shares of the company’s stock in a transaction on Monday, August 15th. The stock was 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 directly owns 7,110 shares in the company, valued at approximately $638,122.50. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, SVP Graciela Monteagudo sold 45,873 shares of the company’s stock in a transaction on Friday, August 5th. The stock was 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 owns 13,800 shares of the company’s stock, valued at $1,209,432. The disclosure for this sale can be found here. Corporate insiders own 0.50% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of MJN. M&T Bank Corp increased its position in shares of Mead Johnson Nutrition by 30.5% in the first quarter. M&T Bank Corp now owns 20,609 shares of the company’s stock worth $1,751,000 after buying an additional 4,818 shares during the last quarter. Geode Capital Management LLC increased its position in shares of Mead Johnson Nutrition by 0.5% in the first quarter. Geode Capital Management LLC now owns 1,580,432 shares of the company’s stock worth $134,026,000 after buying an additional 7,865 shares during the last quarter. Bessemer Group Inc. increased its position in shares of Mead Johnson Nutrition by 634.5% in the first quarter. Bessemer Group Inc. now owns 2,894 shares of the company’s stock worth $246,000 after buying an additional 2,500 shares during the last quarter. Riverhead Capital Management LLC increased its position in shares of Mead Johnson Nutrition by 9.4% in the first quarter. Riverhead Capital Management LLC now owns 49,135 shares of the company’s stock worth $4,175,000 after buying an additional 4,216 shares during the last quarter. Finally, Sensato Investors LLC bought a new position in shares of Mead Johnson Nutrition during the first quarter worth approximately $13,841,000. Hedge funds and other institutional investors own 96.93% of the company’s stock.
About Mead Johnson Nutrition
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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