Bullish option flow was detected in JNJ stock on January 25, 2022.
Bullish Option Flow
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Johnson & Johnson Reports Q4 and Full-Year 2021 Results
On January 25, 2022, Johnson & Johnson (NYSE: JNJ) announced results for fourth-quarter and full year 2021.
Johnson & Johnson reported Q4 adjusted EPS of $2.13 versus the consensus estimate of $2.12. The company reported Q4 revenue of $24.8B versus the consensus estimate of $25.29B.
“Our 2021 performance reflects continued strength across all segments of our business. Guided by Our Credo, I am honored to assume the role of CEO, leading our global teams in continuing our work to deliver life-changing solutions to consumers, patients, and health care providers” said Joaquin Duato, Chief Executive Officer. “Given our strong results, financial profile, and innovative pipeline we are well positioned for success in 2022 and beyond.”
Johnson & Johnson says they continue to look at smaller, tuck-in deals, but will also consider mid-size and larger acquisitions. They said that they have “no artificial ceiling” regarding deal size but looking to use cash in a “disciplined and responsible way.”
J&J announces settlement pact with New Mexico resolving opioid claims
On January 14, 2022, Johnson & Johnson and its U.S.-based Janssen Pharmaceutical Companies announced a settlement agreement with the State of New Mexico and its participating subdivisions resolving their opioid-related claims against the company. With this agreement, the company is removed from pending litigation by the State and its subdivisions. The $44M settlement with New Mexico is consistent with the terms of the previously announced nationwide opioid settlement agreement. The dollar amount to be received by the State is the pro-rated share it would have received under this agreement, which will be deducted from the all-in settlement amount. This settlement is not an admission of any liability or wrongdoing and the company will continue to defend against any litigation that the final agreement does not resolve. The company’s actions relating to the marketing and promotion of important prescription opioid medications were appropriate and responsible. DURAGESIC, NUCYNTA and NUCYNTA ER accounted for less than one percent of total opioid prescriptions in New Mexico and the U.S. since launch. The company no longer sells prescription opioid medications in the United States as part of our ongoing efforts to focus on transformational innovation and serving unmet patient needs.
FDA grants J&J request to add warning on COVID-19 Vaccine fact sheet
On January 11, 2022, the FDA granted Janssen Biotech’s request to revise the Emergency Use Authorization of Johnson & Johnson’s COVID-19 Vaccine. The EUA fact sheet for healthcare providers administering vaccine now states: “Reports of adverse events following use of the Janssen COVID-19 Vaccine under emergency use authorization suggest an increased risk of immune thrombocytopenia during the 42 days following vaccination. Individuals with a history of ITP should discuss with their healthcare provider the risk of ITP and the potential need for platelet monitoring following vaccination with the Janssen COVID-19 Vaccine.” Source: https://www.fda.gov/media/155391/download
Supreme Court blocks OSHA vaccine mandate for large businesses
On January 13, 2022, the Supreme Court stated in a ruling posted to its site: “The Secretary of Labor, acting through the Occupational Safety and Health Administration, recently enacted a vaccine mandate for much of the Nation’s work force. The mandate, which employers must enforce, applies to roughly 84 million workers, covering virtually all employers with at least 100 employees. It requires that covered workers receive a COVID-19 vaccine, and it pre-empts contrary state laws. The only exception is for workers who obtain a medical test each week at their own expense and on their own time, and also wear a mask each workday… Applicants now seek emergency relief from this Court, arguing that OSHA’s mandate exceeds its statutory authority and is otherwise unlawful. Agreeing that applicants are likely to prevail, we grant their applications and stay the rule… Although Congress has indisputably given OSHA the power to regulate occupational dangers, it has not given that agency the power to regulate public health more broadly. Requiring the vaccination of 84 million Americans, selected simply because they work for employers with more than 100 employees, certainly falls in the latter category… The applications for stays presented to JUSTICE KAVANAUGH and by him referred to the Court are granted.” Makers of COVID-19 vaccines approved for use in the U.S. include Pfizer (PFE) and BioNTech (BNTX), Moderna (MRNA), and Johnson & Johnson (JNJ). Source: https://www.supremecourt.gov/opinions/21pdf/21a244_hgci.pdf
📺 Johnson & Johnson CFO breaks down mixed earnings report, full-year guidance
📈 JNJ Stock Technical Analysis
There is a bullish positive divergence between large players volume and price. The short term trend is negative, the long term trend is neutral. JNJ is one of the better performing stocks in the Pharmaceuticals industry, it outperforms 89% of 267 stocks in the same industry. JNJ is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.
There is support at 163.22 from a trend line in the weekly time frame. There is also a support zone ranging from 159.19 to 160.47. This zone is formed by a combination of multiple trend lines in multiple time frames. There is also a support zone ranging from 155.92 to 156.10. This zone is formed by a combination of multiple trend lines in multiple time frames.
There is a resistance zone ranging from 166.59 to 169.64. This zone is formed by a combination of multiple trend lines and important moving averages in the daily time frame. There is also a resistance zone ranging from 174.39 to 174.39. This zone is formed by a combination of multiple trend lines in the daily time frame.
The technical rating of JNJ is bad and it also does not present a quality setup at the moment. JNJ stock has a Setup Rating of 3 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when JNJ stock consolidates and has a Setup Rating of 8 or higher.