Kenvue (NYSE:KVUE) announced on Monday that Johnson & Johnson (NYSE:JNJ) will sell its remaining 9.5% stake in the consumer health company. This announcement comes approximately a year after Kenvue was spun off from JNJ
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According to a Reuters report, JNJ will sell 182.3 million shares, which are expected to be worth $3.75 billion. Johnson & Johnson will exchange these shares with Goldman Sachs and J.P. Morgan Securities for its debt.
The secondary underwritten public offering of these shares will not result in the sale of any “shares of common stock and [Kenvue] will not receive any proceeds from the sale of the shares in the offering.”
What Is the Future of KVUE Stock?
Analysts remain sidelined about KVUE stock, with a Hold consensus rating based on four Buys, five Holds, and two Sells. Over the past year, KVUE has declined by more than 20%, and the average KVUE price target of $21.40 implies an upside potential of 4.85% from current levels.
