Ken Griffin’s Citadel Makes Major Move in Kenvue Stock

Ken Griffin, a billionaire hedge fund manager and CEO of Citadel Advisors, has made a significant investment in Kenvue. Citadel’s latest 13F filing reveals the firm purchased 18,736,591 shares of Kenvue (NYSE: KVUE) during the second quarter, marking a staggering increase of 5,848% in its position.

In this article, I will explain why now might be an excellent time to consider Kenvue shares. I’ll also evaluate the company’s overall outlook and why this consumer health business could be a valuable long-term investment for the right buyer.

Why Kenvue Stock Could Be a Smart Buy Now

Even if the name Kenvue doesn’t ring a bell, you’re likely familiar with its well-known health brands. Kenvue is behind popular names like Aveeno, Listerine, Zyrtec, Tylenol, Motrin, Benadryl, Neosporin, Neutrogena, and Band-Aid, among others.

As flu season approaches, Kenvue is expected to see a seasonal uptick in demand for its over-the-counter allergy and cold remedies.

Image source: Getty Images.

Key Factors to Consider

Kenvue, which is a spin-off from Johnson & Johnson, has only been trading independently for just over a year. Despite this short trading history, Citadel’s stock position in Kenvue over the past year offers insights into certain themes. The table below details Citadel’s holdings in Kenvue:

Data source: Hedge Follow.

Public filings indicate that Citadel owned 6.6 million shares of Kenvue during its initial public offering. However, it had been net selling Kenvue stock until this second quarter surge.

What prompted such a dramatic purchase after several quarters of selling?

Firstly, Kenvue’s stock is down about 15% since its IPO and is currently trading at a forward price-to-earnings (P/E) ratio lower than that of the S&P 500. Citadel might see this as a mispriced opportunity, anticipating a rebound as flu season draws near. This suggests that Citadel could view Kenvue as more of a timely trade rather than a long-term investment.

Citadel also increased its holdings in several other consumer staple and healthcare companies during the same quarter, including Pfizer, UnitedHealth Group, Clorox, and Humana. This could indicate that the purchase of Kenvue is a strategic hedge within its varied portfolio.

Is Now the Right Time to Buy Kenvue Stock?

While it’s uncertain what exactly motivated Citadel’s large investment in Kenvue, I have my own reasons for considering the stock.

Kenvue offers an attractive dividend yield of 3.8%, which is about three times the average yield of the S&P 500. This makes Kenvue appealing throughout the year, as its products maintain steady demand regardless of the season. Such stability is a valuable trait in the consumer sector. Kenvue’s strong positioning makes it especially attractive for investors looking for passive income, as the company appears capable of sustaining or even increasing its dividend.

Though Kenvue may not fit neatly into the growth stock category, its long-term potential should not be underestimated. Kenvue’s business model is both defensive and resilient, giving it a unique advantage during various economic cycles and consumer trends.

For these reasons, I consider Kenvue stock a worthwhile investment and believe that now is an opportune moment to acquire shares with a long-term perspective.

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Adam Spatacco has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kenvue and Pfizer. The Motley Fool recommends Johnson & Johnson and UnitedHealth Group and recommends the following options: long January 2026 $13 calls on Kenvue. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.