Johnson & Johnson (NYSE:JNJ) Shares Up 1.3% – Should You Buy?

Shares of Johnson & Johnson (NYSE:JNJ) traded up 1.3% on Thursday . The company traded as high as $270.87 and last traded at $270.6490. Approximately 6,369,280 shares traded hands during mid-day trading, a decline of 21% from the average session volume of 8,014,441 shares. The stock had previously closed at $267.28.

Johnson & Johnson News Roundup

Here are the key news stories impacting Johnson & Johnson this week:

• Positive Sentiment: Johnson & Johnson remains attractive to income-focused investors as a Dividend Aristocrat with 64 consecutive years of dividend increases. Analysts also point to its defensive characteristics, healthy balance sheet, buyback potential and ability to provide steady cash returns amid economic and inflation uncertainty. 3 Strong Buy Dividend Aristocrat Stocks to Generate Steady Cash
• Positive Sentiment: Recent drug launches, pipeline progress and oncology data are supporting the growth case. Management has highlighted underlying growth despite the loss of Stelara sales, with revenue reportedly rising 5.6% after excluding a significant Stelara-related drag. J&J Up 18% in Three Months
• Neutral Sentiment: Reports that J&J may sell its DePuy Synthes orthopedic unit for approximately $20 billion have renewed focus on portfolio strategy and capital allocation. A transaction could unlock value or fund growth, but the sale remains only potential and could reduce the company’s MedTech scale. J&J Faces a Fresh Valuation Test on DePuy Sale Talk
• Neutral Sentiment: CEO Joaquin Duato’s appointment to PepsiCo’s independent board, effective December 1, adds visibility to J&J’s leadership but is not a direct change to J&J’s earnings outlook. PepsiCo Welcomes Joaquin Duato to Its Board
• Negative Sentiment: Investors remain concerned about Stelara’s patent loss, MedTech weakness and billions of dollars in talc-related litigation liabilities. In addition, J&J’s elevated valuation after its strong run may limit upside unless operating results continue to exceed expectations. Better Dividend King to Buy and Hold: Johnson & Johnson or Kenvue?

Wall Street Analysts Forecast Growth

JNJ has been the subject of a number of research reports. HSBC raised their price objective on Johnson & Johnson from $290.00 to $320.00 and gave the stock a “buy” rating in a research report on Thursday, September 10th. TD Cowen lifted their price objective on Johnson & Johnson from $250.00 to $300.00 and gave the company a “buy” rating in a research report on Monday, July 13th. Wall Street Zen cut shares of Johnson & Johnson from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. UBS Group assumed coverage on shares of Johnson & Johnson in a research note on Wednesday, September 2nd. They set a “buy” rating and a $320.00 price target for the company. Finally, Citigroup boosted their target price on Johnson & Johnson from $285.00 to $298.00 and gave the stock a “buy” rating in a research report on Wednesday, July 8th. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $274.13.

Johnson & Johnson Price Performance

The stock has a market capitalization of $650.61 billion, a price-to-earnings ratio of 31.28, a PEG ratio of 2.58 and a beta of 0.24. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.81 and a current ratio of 1.09. The company has a fifty day simple moving average of $263.74 and a two-hundred day simple moving average of $246.71.

Johnson & Johnson (NYSE:JNJ) last announced its quarterly earnings data on Wednesday, July 15th. The company reported $2.90 EPS for the quarter, beating the consensus estimate of $2.84 by $0.06. The business had revenue of $25.31 billion during the quarter, compared to the consensus estimate of $25.06 billion. Johnson & Johnson had a net margin of 21.48% and a return on equity of 32.42%. The company’s revenue was up 6.6% on a year-over-year basis. During the same period in the previous year, the business earned $2.77 earnings per share. Johnson & Johnson has set its FY 2026 guidance at 11.600-11.750 EPS. As a group, equities research analysts expect that Johnson & Johnson will post 11.61 earnings per share for the current fiscal year.

Johnson & Johnson Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Investors of record on Tuesday, August 25th were given a dividend of $1.34 per share. This represents a $5.36 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date was Tuesday, August 25th. Johnson & Johnson’s payout ratio is presently 62.11%.

Insider Transactions at Johnson & Johnson

In related news, EVP Elizabeth Forminard sold 15,918 shares of the stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $257.00, for a total value of $4,090,926.00. Following the completion of the sale, the executive vice president directly owned 16,994 shares of the company’s stock, valued at approximately $4,367,458. This represents a 48.37% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Timothy Schmid sold 33,597 shares of the firm’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $274.74, for a total transaction of $9,230,439.78. Following the transaction, the executive vice president directly owned 25,447 shares in the company, valued at $6,991,308.78. The trade was a 56.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 87,569 shares of company stock valued at $23,064,544 in the last 90 days. 0.16% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Security National Bank of Sioux City Iowa IA lifted its holdings in shares of Johnson & Johnson by 27.2% in the 2nd quarter. Security National Bank of Sioux City Iowa IA now owns 18,143 shares of the company’s stock worth $4,608,000 after acquiring an additional 3,878 shares during the last quarter. Reynders McVeigh Capital Management LLC grew its position in Johnson & Johnson by 0.7% during the 2nd quarter. Reynders McVeigh Capital Management LLC now owns 76,513 shares of the company’s stock worth $19,432,000 after acquiring an additional 499 shares during the last quarter. Bullseye Investment Management LLC purchased a new position in Johnson & Johnson in the 2nd quarter worth approximately $63,000. Talon Private Wealth LLC lifted its position in Johnson & Johnson by 89.5% in the second quarter. Talon Private Wealth LLC now owns 10,588 shares of the company’s stock valued at $2,689,000 after purchasing an additional 5,002 shares during the last quarter. Finally, U S Wealth Group LLC. grew its holdings in shares of Johnson & Johnson by 15.1% in the second quarter. U S Wealth Group LLC. now owns 17,259 shares of the company’s stock worth $4,383,000 after purchasing an additional 2,266 shares during the last quarter. 69.55% of the stock is owned by institutional investors.

About Johnson & Johnson

Johnson & Johnson (NYSE: JNJ) is a global healthcare company that develops, manufactures and markets pharmaceutical and medical device products. Founded in 1886 and headquartered in New Brunswick, New Jersey, the company serves patients, healthcare professionals and institutions in markets around the world.

Johnson & Johnson operates through two primary business segments: Innovative Medicine and MedTech. Innovative Medicine focuses on prescription treatments in areas including immunology, oncology, neuroscience, cardiovascular and metabolic disease, infectious diseases, and pulmonary hypertension.