Pediatric nutrition specialist Mead Johnson Nutrition Co. ( MJN ) on Tuesday saw its shares jumping higher in premarket trading, following a report of no bacteria found in its Enfamil baby formula.
A release Sunday morning noted that after "a new round of rigorous testing," the formula has been declared safe for consumption. Last week, MJN shares were trounced following a scare that its Enfamil PREMIUM Newborn powdered formula could have been tainted with the Cronobacter (Enterobacter sakazakii) bacteria.
Major retailers like Wal-Mart ( WMT ), Safeway ( SWY ), and Walgreen ( WAG ) all voluntarily pulled the formula from store shelves amid the scare.
Mead Johnson shares rose $3.34, or +5.1%, in premarket trading Tuesday.
The Bottom Line
Shares of Mead Johnson Nutrition ( MJN ) have a 1.59% dividend yield, based on Friday's closing stock price of $65.29. The stock has technical support in the $61-$65 price area. If the stock can firm up, we see overhead resistance around the all-time highs of $76-$77 a share.
Mead Johnson Nutrition Co. ( MJN ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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