Johnson & Johnson (NYSE:JNJ) Shares Up 1.9% – Should You Buy?

Shares of Johnson & Johnson (NYSE:JNJ) were up 1.9% during trading on Friday. The stock traded as high as $261.61 and last traded at $261.2720. 5,459,241 shares traded hands during mid-day trading, a decline of 31% from the average daily volume of 7,959,499 shares. The stock had previously closed at $256.48.

Johnson & Johnson News Summary

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

• Positive Sentiment: Johnson & Johnson reported durable two-year results for ICOTYDE (icotrokinra) in moderate-to-severe plaque psoriasis. Nearly three-quarters of adults and adolescents achieved clear or almost clear skin, while the treatment continued to show a favorable safety profile. The data strengthen the commercial case for a potential growth product in J&J’s immunology portfolio. ICOTYDE two-year psoriasis results
• Positive Sentiment: Guggenheim reaffirmed a Buy rating, while Morgan Stanley also issued a Buy rating. The endorsements add support to the bullish view that J&J’s drug launches, pipeline investments and dealmaking can offset longer-term losses from aging products. Guggenheim Buy rating
• Positive Sentiment: J&J continues to attract income-focused investors because of its long record of dividend growth and comparatively strong payout support. Recent analysis contrasts its lower yield with Pfizer’s higher but potentially less reliable payout, reinforcing J&J’s defensive appeal. J&J dividend comparison
• Neutral Sentiment: Investors are positioning for third-quarter earnings. J&J enters the report with strong pharmaceutical sales and new launches, while its previous quarter included revenue growth of 6.6% and adjusted EPS above consensus. Analysts are also debating whether the stock’s elevated valuation already reflects much of the expected growth. J&J Q3 earnings outlook
• Negative Sentiment: Boston Scientific has sued J&J subsidiary Atraverse, seeking an injunction and damages over alleged patent infringement involving the Hotwire cardiology device. The dispute could create legal costs or restrict commercialization if the claims succeed. Atraverse patent lawsuit
• Negative Sentiment: J&J faces a broader pharmaceutical patent overhang, including upcoming expirations for Imbruvica and Darzalex, while Stelara biosimilar competition could pressure growth. MedTech execution challenges add another source of uncertainty. J&J patent cliff analysis

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on JNJ. The Goldman Sachs Group restated a “buy” rating and issued a $282.00 price target on shares of Johnson & Johnson in a research report on Thursday, July 16th. Argus set a $300.00 price target on shares of Johnson & Johnson in a research report on Wednesday, July 29th. Citigroup lifted their price objective on Johnson & Johnson from $298.00 to $303.00 and gave the stock a “buy” rating in a research report on Monday. JPMorgan Chase & Co. upped their target price on Johnson & Johnson from $270.00 to $285.00 and gave the company a “neutral” rating in a research report on Tuesday, September 29th. Finally, HSBC lifted their target price on Johnson & Johnson from $290.00 to $320.00 and gave the stock a “buy” rating in a report on Thursday, September 10th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $276.22.

Johnson & Johnson Stock Up 1.9%

The company has a current ratio of 1.09, a quick ratio of 0.81 and a debt-to-equity ratio of 0.44. The stock’s 50-day moving average price is $265.73 and its 200-day moving average price is $248.93. The company has a market cap of $629.64 billion, a P/E ratio of 30.27, a PEG ratio of 2.59 and a beta of 0.21.

Johnson & Johnson (NYSE:JNJ) last issued its earnings results on Wednesday, July 15th. The company reported $2.90 EPS for the quarter, beating analysts’ consensus estimates of $2.84 by $0.06. The business had revenue of $25.31 billion during the quarter, compared to analyst estimates of $25.06 billion. Johnson & Johnson had a return on equity of 32.42% and a net margin of 21.48%.The firm’s revenue was up 6.6% compared to the same quarter last year. During the same period in the previous year, the company posted $2.77 EPS. Johnson & Johnson has set its FY 2026 guidance at 11.600-11.750 EPS. As a group, research analysts forecast that Johnson & Johnson will post 11.3 EPS for the current year.

Johnson & Johnson Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 8th. Investors of record on Tuesday, August 25th were given a $1.34 dividend. The ex-dividend date of this dividend was Tuesday, August 25th. This represents a $5.36 annualized dividend and a yield of 2.1%. Johnson & Johnson’s dividend payout ratio (DPR) is presently 62.11%.

Insider Buying and Selling at Johnson & Johnson

In other news, EVP Jennifer L. Taubert sold 15,000 shares of the business’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $263.36, for a total transaction of $3,950,400.00. Following the completion of the sale, the executive vice president directly owned 194,451 shares of the company’s stock, valued at $51,210,615.36. The trade was a 7.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Vanessa Broadhurst sold 23,054 shares of the company’s stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $251.27, for a total transaction of $5,792,778.58. Following the completion of the sale, the executive vice president owned 23,003 shares in the company, valued at $5,779,963.81. This represents a 50.06% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 87,569 shares of company stock worth $23,064,544. Corporate insiders own 0.16% of the company’s stock.

Institutional Trading of Johnson & Johnson

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Riversedge Advisors LLC raised its stake in shares of Johnson & Johnson by 4.0% in the third quarter. Riversedge Advisors LLC now owns 6,481 shares of the company’s stock worth $1,716,000 after purchasing an additional 250 shares during the last quarter. Wedmont Private Capital boosted its position in shares of Johnson & Johnson by 22.2% during the third quarter. Wedmont Private Capital now owns 41,616 shares of the company’s stock valued at $10,674,000 after buying an additional 7,564 shares during the last quarter. Intelligence Driven Advisers LLC grew its holdings in Johnson & Johnson by 9.5% during the third quarter. Intelligence Driven Advisers LLC now owns 2,210 shares of the company’s stock worth $585,000 after buying an additional 192 shares in the last quarter. Insight Wealth Strategies LLC raised its position in Johnson & Johnson by 8.8% in the 3rd quarter. Insight Wealth Strategies LLC now owns 925 shares of the company’s stock valued at $245,000 after buying an additional 75 shares during the last quarter. Finally, McNaughton Wealth Management LLC purchased a new stake in Johnson & Johnson in the 3rd quarter valued at $209,000. 69.55% of the stock is owned by institutional investors.

Johnson & Johnson Company Profile

Johnson & Johnson (NYSE: JNJ) is a global healthcare company that develops, manufactures and markets products through two primary business segments: Innovative Medicine and MedTech. Its operations serve patients, healthcare professionals and consumers in markets around the world.

The Innovative Medicine segment focuses on prescription medicines in areas including immunology, oncology, neuroscience, cardiovascular and metabolic disease, infectious diseases, and pulmonary hypertension.