Johnson & Johnson (NYSE: JNJ) recalled select electrosurgery tools due to the risk of burn injuries or death; JNJ stock fell 3.47% in a week. Megadyne recalls MEGA SOFT and MEGA 2000 units of reusable patient return electrodes. It is because the company received complaints from pediatric and adult patients receiving burn injuries from using the product. The Food & Drug Administration (FDA) calls this a serious issue.
Johnson & Johnson (JNJ Stock) – Product Recall & Financial Analysis
The medical surgery wing of Johnson & Johnson, Ethicon Endo-Surgery, Inc., announced the acquisition of Megadyne Medical Products, Inc. on January 20, 2017. A company that develops, manufactures, and markets electrosurgical tools worldwide. Megadyne is trying to evaluate the root cause of the malfunction after 63 injuries were reported. However, no death due to product use is on record yet.
The United States health regulator FDA received reports from adult and pediatric patients suffering burn injuries using MEGA 2000 and MEGA SOFT Reusable Patient Returns Electrodes. The agency argues that the patients could experience 3rd-degree burns, elongating their stay in the hospital beside the current ailment they are suffering with.
Moreover, the healthcare giant recently decided to slow down by altering its consumer health segment. This segment used to provide several famous over-the-counter healthcare brands. J&J completed the spinoff in early 2023, with the new company Kenvue (NYSE: KVUE) starting trading on NYSE on May 4. Experts argue that altering the company’s consumer healthcare segment might have consequences.
At press time, JNJ Stock is trading at $158.63 with a drop of 0.55%; previous close and open were at $159.51 and $159.13, respectively. The 52-week range is from $150.11 to $181.04, indicating that the current price is close to the lower end of the spectrum. With an average volume of 7.48 Million shares, the market cap is $41.237 Billion.
The trailing twelve-month (ttm) price-to-earnings (P/E) ratio is 33.26, indicating a fairly valued stock price. At the same time, the (ttm) earnings per share (EPS) is $4.77. Also, the (ttm) price-to-cash (P/C) ratio is 17.09, and the price-to-free cash flow (P/FCF) is 96.26. Analysts placed a 2.42 rating for HOLD and estimated a price target at $171.57 with an 8.2% upside.
The last earnings report was released on April 18, 2023, where the reported revenue of $24.746 Billion surpassed the expected value of $2.503 Billion by 7.09%. Also, the reported earnings of $2.68 per share exceeded the expected value of $2.503 per share by 4.86%. The subsequent payments will be released on July 20, 2023, where the estimation for earnings is $2.617 per share and for revenue is $24.675 Billion.
The (TM) revenue is reported to be $96.26 Billion, while the year-over-year (YoY) quarterly revenue growth gained 5.60%. Total cash in hand at the end of the most recent quarter (mrq) is $24.61 Billion, while total debt is $52.91 Billion. The long-term debt-to-equity ratio is around 0.49.
Johnson & Johnson (JNJ Stock) – Candle Exploration
In March 2023, NYSE: JNJ formed a short-term base before registering a steep rally with a gap. But since then, it’s consolidated in a broader range, with its lows bouncing off the ascending trend line. This time also, the price is expected to jump off the trendline and consolidate in a narrow region for some time.
If the price action surpasses the crucial resistance point of $166.20, the price shall consolidate in the expected range before entering the supply zone. If the price action turns south, it should bounce off the demand zone. However, bad news could help in creating new lows.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets & stocks comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/07/12/johnson-johnson-jnj-stock-battling-major-product-recall/