Johnson & Johnson (NYSE:JNJ) stock is on the move Friday after the company announced split plans that would create two public companies.
Let’s take a look at what investors need to know about the JNJ split below!
- The split would result in a new Johnson & Johnson as well as a still-unnamed consumer health company.
- That new company would have a focus on global consumer health.
- This would see it manage the Neutrogena, Tylenol, Listerine, and other consumer health brands owned by JNJ.
- Johnson & Johnson doesn’t yet say who will serve as the executive leadership and board members for the consumer health company.
- However, we know that the new Johnson & Johnson will be led by CEO Joaquin Duato.
- Duato is taking over the CEO role from Alex Gorsky, who will serve as the Executive Chairman of the Board of Directors.
- Johnson & Johnson believes this split will be positive for all shareholders.
- It claims the separation will allow each company to better focus on its core business.
- That will also provide investors with the choice of taking stakes in companies that better fit their portfolios.
- The hope here is that each company will be able to drive growth and create value through its operations.
Johnson & Johnson stock is already seeing a decent amount of movement on today’s split news. As of this writing, more than 5.5 million shares of the stock have changed hands. That’s approaching the company’s daily average trading volume of 6.2 million shares.
JNJ stock is up 1.7% as of Friday morning and is up 6% since the start of the year.
Investors seeking more stock market news will want to keep reading!
InvestorPlace has all the latest news that traders need to know about today. A few examples of that include this morning’s pre-market stock movers, gold price predictions, as well as some special purpose acquisition companies (SPACs) to keep an eye on. You can learn all about that from the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.