Johnson & Johnson shares gain for a second straight session on Wednesday, company to acquire Auris Health Inc for $3.4 billion

Johnson & Johnson (JNJ) announced on Wednesday that it intended to acquire Auris Health Inc, a privately held surgical robotics company, in an all-cash deal valued at about $3.4 billion.

Johnson & Johnson also said that it would pay additional $2.35 billion, in case Auris reaches particular milestones. However, the company did not provide details.

Johnson & Johnson shares closed higher for a second consecutive trading session in New York on Wednesday. The stock edged up 0.22% ($0.29) to $134.45, after touching an intraday high at $134.98, or a price level not seen since January 31st ($135.19).

Shares of Johnson & Johnson have risen 4.18% so far in 2019 compared with a 9.82% gain for the benchmark index, S&P 500 (SPX).

In 2018, Johnson & Johnson’s stock went down 7.64%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.

The deal is expected to be finalized by the end of the second quarter of 2019.

“This acquisition will accelerate Johnson & Johnson’s entry into robotics with potential for growth and expansion into other interventional applications,” the healthcare conglomerate said in a statement, cited by Reuters.

According to CNN Money, the 16 analysts, offering 12-month forecasts regarding Johnson & Johnson’s stock price, have a median target of $144.50, with a high estimate of $160.00 and a low estimate of $123.00. The median estimate represents a 7.47% upside compared to the closing price of $134.45 on February 13th.

The same media also reported that 9 out of 19 surveyed investment analysts had rated Johnson & Johnson’s stock as “Hold”, while 8 – as “Buy”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Johnson & Johnson (JNJ) are presented as follows:

Central Pivot Point – $132.69
R1 – $133.86
R2 – $135.31
R3 – $136.48
R4 – $137.64

S1 – $131.24
S2 – $130.07
S3 – $128.62
S4 – $127.16