Most Volatile Market Movers: Johnson & Johnson (NYSE:JNJ), Ascena Retail Group, Inc. (NASDAQ:ASNA)

Johnson & Johnson (NYSE:JNJ) [Trend Analysis] attempts to attain leading position in street, Shares price changes as it 0.52% to close at $111.96 with the total traded volume of 6.16 Million shares. Actelion’s silence speaks volumes to dozens of event-driven hedge funds piling into the Swiss biotech firm, betting that Johnson & Johnson’s (JNJ) approach will result in an outright takeover and handsome returns. A source familiar with the matter has told Reuters the two companies are discussing a offer of close to $27 billion, or 250 Swiss francs ($248) per share, which is 25 percent above Actelion’s current share price.

Both companies have confirmed that U.S. diversified healthcare group J&J – maker of Pizbuin sun screen, surgical tools and arthritis drug Remicade – has approached Actelion about a potential takeover, but kept mum on details. Co-founder and Chief Executive Jean-Paul Clozel and fellow shareholder Rudolf Maag have in the past been outspoken defenders of an independent Actelion, which has built a $2 billion business by focusing on a debilitating lung disease. The firm has institutional ownership of 65.70%, while insider ownership included 0.02%. Its price to sales ratio ended at 4.27. JNJ attains analyst recommendation of 2.50 with week performance of -1.90%.

Ascena Retail Group, Inc. (NASDAQ:ASNA) [Trend Analysis] surged reacts as active mover, shares surge of 20.24% to traded at $7.01 and the percentage gap among open changing to regular change was 2.92%. Ascena Retail Group, Inc. (NASDAQ:ASNA) revealed that GAAP earnings for its fiscal first quarter ended October 29, 2016 of $0.07 per diluted share compared to a net loss of $0.10 per diluted share in the year-before period.

Net sales for the first quarter of Fiscal 2017 were $1.678 billion compared to $1.672 billion in the year-before period, which excluded roughly $122 million of ANN sales in the stub period that preceded the ANN acquisition date. The raise in sales from the inclusion of ANN for the full quarter was offset by the impact of the 5% same sales decline.

Gross margin surged to $1,014 million, or 60.4% of sales, for the first quarter of Fiscal 2017 compared to $903 million, or 54.0% of sales in the year-before period, which excluded roughly $75 million of ANN gross margin dollars in the stub period that preceded the ANN acquisition date. Previous year gross margin included an unfavorable, non-cash purchase accounting adjustment of about $104 million associated with the write-up of inventory to fair market value, which negatively impacted gross margin rate by 620 basis points. The firm’s current ratio calculated as 1.20 for the most recent quarter. The firm past twelve months price to sales ratio was 0.20 and price to cash ratio remained 3.65. As far as the returns are concern, the return on equity was recorded as -0.60% and return on investment was 2.60% while its return on asset stayed at -0.20%. The firm has total debt to equity ratio measured as 0.88.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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