5 Best Low Beta Stocks to Buy

2. Johnson & Johnson (NYSE:JNJ)

No. of Hedge Fund Holders: 85

Johnson & Johnson (NYSE:JNJ) is the world’s largest and most diverse healthcare firm. It carries out its operations into 3 business segments: Consumer Health, Pharmaceutical and Medical Devices.

Johnson & Johnson (NYSE:JNJ) and Abiomed, Inc. (NASDAQ:ABMD) have entered into a definitive agreement under which the former will acquire the latter, through a tender offer, all outstanding shares for an upfront payment of $380.00 per share in cash at an enterprise value of approximately $16.6 billion, including cash acquired.

Morgan Stanley covered Johnson & Johnson (NYSE:JNJ) and raised its target price on shares of the company from $170.00 to $178.00 in a report on December 1, 2022.

The company’s EVP Ashley Mcevoy sold 73,323 shares in a transaction November 30, 2022 at an average price of $175.47 for a total value of $12,865,986.81. Post this sale, EVP now directly owns 41,813 shares of the company’s stock worth $7,336,927.11.

Business of the company is fairly diverse as it generates billions in revenue from its consumer health, pharmaceutical, and med-tech businesses. Interestingly, the company’s pharmaceutical segment accounts for more than half of its overall sales. Annually, its revenue from the pharma business over the trailing 12 months came in at approximately $53.7 billion. However, it expects that its annual sales from this business should top $60 billion by 2025.

Of 920 hedge funds tracked by Insider Monkey at the end of the third quarter of 2022, 85 hedge funds were long Johnson & Johnson (NYSE:JNJ), with a total stake value of $5.46 billion.

Distillate Capital Partners LLC, an investment management firm, published its second-quarter 2022 investor letter in which it mentioned Johnson & Johnson (NYSE:JNJ). Here is what the fund said:

“Johnson & Johnson was among the 2 largest trims at around 1% each. Each stock was up 1% in the quarter compared to the 16% price decline for the S&P 500 and the positions were reduced as the valuations became somewhat less appealing, though still attractive enough to warrant inclusion.”