Diversified Management Inc. Lowers Stock Holdings in Johnson & Johnson $JNJ

Key Points

• Diversified Management Inc. cut its Johnson & Johnson stake by 61.1% in the second quarter, selling 12,147 shares and retaining 7,731 shares valued at approximately $1.96 million.
• Johnson & Johnson reported stronger-than-expected second-quarter results, with revenue up 6.6% to $25.31 billion and adjusted EPS of $2.90. The company reaffirmed fiscal 2026 guidance and declared a quarterly dividend of $1.34 per share, yielding about 2.1%.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $268.22 price target, though insider selling, valuation near 30 times earnings, patent expirations and talc litigation remain risks.

Diversified Management Inc. lessened its position in Johnson & Johnson (NYSE:JNJ - Free Report) by 61.1% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 7,731 shares of the company's stock after selling 12,147 shares during the quarter. Diversified Management Inc.'s holdings in Johnson & Johnson were worth $1,963,000 at the end of the most recent reporting period.

Several other hedge funds have also recently bought and sold shares of the company. Vanguard Group Inc. boosted its stake in shares of Johnson & Johnson by 1.6% in the fourth quarter. Vanguard Group Inc. now owns 240,349,660 shares of the company's stock valued at $49,740,362,000 after purchasing an additional 3,731,074 shares during the period. State Street Corp increased its stake in Johnson & Johnson by 1.3% during the 4th quarter. State Street Corp now owns 133,869,843 shares of the company's stock worth $27,704,364,000 after buying an additional 1,663,782 shares during the period. Auto Owners Insurance Co lifted its holdings in Johnson & Johnson by 22,225.6% during the 4th quarter. Auto Owners Insurance Co now owns 69,419,308 shares of the company's stock worth $1,436,633,000 after buying an additional 69,108,368 shares in the last quarter. Geode Capital Management LLC lifted its holdings in Johnson & Johnson by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 57,953,747 shares of the company's stock worth $11,967,947,000 after buying an additional 1,738,292 shares in the last quarter. Finally, Norges Bank purchased a new position in Johnson & Johnson in the 4th quarter valued at approximately $6,924,523,000. Institutional investors and hedge funds own 69.55% of the company's stock.

Johnson & Johnson News Summary

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

• Positive Sentiment: Johnson & Johnson’s fiscal second-quarter results exceeded expectations, with revenue rising 6.6% year over year to $25.31 billion and adjusted earnings per share reaching $2.90. The company also raised or reaffirmed its full-year outlook, reinforcing confidence in operating momentum. Johnson & Johnson vs. Medtronic
• Positive Sentiment: The FDA granted De Novo authorization for J&J’s OTTAVA soft-tissue robotic surgery system, giving its MedTech business an entry point into a growing market and potentially creating a new source of long-term growth. OTTAVA FDA approval
• Positive Sentiment: Additional growth initiatives include a preferred cardiac electrophysiology technology agreement with ACCESS for ambulatory surgery centers, a priority review for RYBREVANT FASPRO, and a collaboration focused on in vivo CAR-T therapies. ACCESS strategic agreement
• Neutral Sentiment: Analysts and commentators generally view JNJ as a hold or moderate buy. Shares are trading above their 50-day and 200-day moving averages, but the stock’s strong rally leaves less valuation support; investors are weighing its roughly 30 times earnings multiple against future growth. JNJ nearing its 52-week high
• Negative Sentiment: Patent expirations, MedTech competition, pipeline execution risks and ongoing talc litigation remain important overhangs. J&J’s proposed $5.5 billion talc settlement framework could reduce legal uncertainty, but it also highlights the potential for substantial cash costs and continued investor scrutiny. OTTAVA FDA win and talc deal

Insider Transactions at Johnson & Johnson

In related news, EVP Vanessa Broadhurst sold 23,054 shares of the business's stock in a transaction that occurred on 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. The trade was a 50.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Kathryn E. Wengel sold 10,000 shares of the company's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $241.15, for a total value of $2,411,500.00. Following the completion of the transaction, the executive vice president directly owned 114,288 shares of the company's stock, valued at $27,560,551.20. This trade represents a 8.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 48,972 shares of company stock valued at $12,295,205. 0.16% of the stock is currently owned by corporate insiders.

Johnson & Johnson Trading Down 1.0%

Shares of NYSE:JNJ opened at $259.28 on Wednesday. Johnson & Johnson has a 52 week low of $171.81 and a 52 week high of $274.90. The company's 50 day moving average is $249.94 and its two-hundred day moving average is $240.47. The company has a market cap of $624.84 billion, a PE ratio of 30.04, a P/E/G ratio of 2.50 and a beta of 0.24. The company has a current ratio of 1.09, a quick ratio of 0.81 and a debt-to-equity ratio of 0.44.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last released its quarterly earnings data on Wednesday, July 15th. The company reported $2.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.84 by $0.06. The business had revenue of $25.31 billion during the quarter, compared to analysts' expectations 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 for the quarter was up 6.6% on a year-over-year basis. During the same period in the previous year, the company earned $2.77 EPS. Johnson & Johnson has set its FY 2026 guidance at 11.600-11.750 EPS. Equities analysts predict that Johnson & Johnson will post 11.61 earnings per share for the current fiscal year.

Johnson & Johnson Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Tuesday, August 25th will be issued a dividend of $1.34 per share. This represents a $5.36 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend is Tuesday, August 25th. Johnson & Johnson's payout ratio is 62.11%.

Analysts Set New Price Targets

JNJ has been the subject of several research reports. Scotiabank restated an "outperform" rating and issued a $305.00 price target on shares of Johnson & Johnson in a research note on Thursday, July 16th. Raymond James Financial set a $280.00 price objective on Johnson & Johnson in a research note on Monday, August 3rd. Bank of America boosted their target price on Johnson & Johnson from $254.00 to $263.00 and gave the stock a "neutral" rating in a research note on Friday, July 10th. Stifel Nicolaus set a $260.00 price target on Johnson & Johnson in a report on Wednesday, July 15th. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and issued a $282.00 price target on shares of Johnson & Johnson in a research report on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $268.22.

Johnson & Johnson Company Profile

Johnson & Johnson is a multinational healthcare company headquartered in New Brunswick, New Jersey, that develops, manufactures and markets a broad range of products across pharmaceuticals, medical devices and previously consumer health. Founded in 1886 by the Johnson family, the company has grown into a global healthcare organization with operations and sales in many countries around the world.

The company's pharmaceuticals business, organized largely under its Janssen research and development organization, focuses on prescription medicines across therapeutic areas such as immunology, infectious disease, oncology and neuroscience.

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