Kenvue (KVUE) stock is 6.5% higher today on reports that activist investor Starboard Value has taken a significant stake in the company. This has led to optimism about potential strategic changes, as Starboard will reportedly push for Kenvue to reassess its brand positioning and pricing strategies to address underperformance in the share price. Starboard is also currently pushing for changes at Pfizer (PFE), where the activist investor has acquired a $1 billion stake.
KVUE is up 7.3% YTD, including today’s gain, while the broader S&P 500 Index ($SPX) has gained more than 22% in 2024.
Kenvue, a consumer products company that spun off from Johnson & Johnson last year, has a market capitalization of approximately $41.58 billion, with a significant institutional shareholder presence of 97.64%.
The company's forward price-to-earnings (P/E) ratio of 18.99 isn’t cheap, but is roughly in line with the broader consumer discretionary sector. Kenvue's dividend yield is 3.78%, with Dividend Aristocrat status inherited from its parent company, JNJ.
Analyst ratings for KVUE have held relatively steady at a “moderate buy,” and the shares now trade in line with their average price target from analysts, at $23.69, after today’s big rally.
Overall, this indicates the stock is fairly valued at present, and investors may want to be cautious of jumping in at these prices.
This article was generated with the support of AI and reviewed by an editor. For more information please view the Barchart Disclosure Policy here.
On the date of publication, Edited by Elizabeth Volk did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
