Douglas Lane & Associates, LLC disclosed a purchase of 34,948 shares of Johnson & Johnson (JNJ -0.24%) in an SEC filing on Friday, representing an estimated $6 million transaction based on average prices during the third quarter.
What Happened
According to an SEC filing released on Friday, Douglas Lane & Associates increased its position in Johnson & Johnson by acquiring 34,948 additional shares in the third quarter. The estimated transaction value, based on the average unadjusted closing price during the period, was $6 million. The new stake totals 667,373 shares, with a reported market value of $123.7 million at quarter-end.
What Else to Know
Post-trade, the JNJ stake represents 1.7% of Douglas Lane's reported assets.
Top holdings after the filing:
- NVDA: $312.46 million (4.5% of AUM)
- GOOGL: $259.08 million (3.7% of AUM)
- JPM: $203.56 million (2.9% of AUM)
- MSFT: $184.79 million (2.6% of AUM)
As of Friday, Johnson & Johnson shares were priced at $190.72, up 18% over the past year and outperforming the S&P 500's 12% gain.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $90.6 billion |
| Net Income (TTM) | $22.7 billion |
| Dividend Yield | 2.7% |
| Price (as of market close Friday) | $190.72 |
Company Snapshot
- Johnson & Johnson generates revenue through a diversified portfolio of pharmaceuticals, medical devices (MedTech), and consumer health products, including well-known brands such as Tylenol, Listerine, Neutrogena, and Acuvue.
- The company's business model centers on the research, development, manufacturing, and global distribution of healthcare products across its three core segments.
- Primary customers include hospitals, healthcare professionals, retailers, wholesalers, and the general public, with a global reach spanning both prescription and over-the-counter markets.
Johnson & Johnson is a global healthcare leader with a broad product portfolio and significant scale, supported by robust R&D and established brands.
Foolish take
Douglas Lane & Associates’ $6 million increase in Johnson & Johnson potentially signals confidence heading into the company’s third-quarter earnings report on Tuesday. Analysts expect revenue of about $23.7 billion and earnings of $2.77 per share. J&J has exceeded estimates for four consecutive periods.
Last quarter, the pharmaceutical giant reported $23.7 billion in sales, up nearly 6% year over year. The company's net earnings, meanwhile, surged 18% to $5.5 billion. J&J also raised full-year adjusted EPS guidance, underscoring steady performance across its drug and medtech units.
Adding intrigue ahead of results, Reuters reported this month that J&J is in talks to acquire Protagonist Therapeutics, which is working with J&J to develop an oral immune-disease treatment, icotrokinra. According to Reuters, analysts at Leerink Partners believe icotrokinra's peak sales could hit $9.5 billion. If completed, the deal could strengthen J&J’s immunology pipeline as the firm’s leading product, Stelara, loses market share.
Glossary
13F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.
Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Reportable Assets: Investment holdings that must be disclosed in regulatory filings, such as the SEC's 13F report.
Position: The amount of a particular security or asset held by an investor or fund.
Stake: The ownership interest or share held in a company by an investor or fund.
Top Holdings: The largest investments in a portfolio, typically ranked by market value or percentage of AUM.
Dividend Yield: The annual dividend payment divided by the current share price, shown as a percentage.
Outperforming: Achieving a higher return than a benchmark index or comparable investment.
Pharmaceuticals: Medicinal drugs and products developed, manufactured, and sold by healthcare companies.
MedTech: Medical technology products, such as devices and equipment used in healthcare settings.
Over-the-counter (OTC) markets: Markets where securities or products are traded directly between parties, not through an exchange.
TTM: The 12-month period ending with the most recent quarterly report.
