Wallace Capital Management Inc. Lowers Holdings in Johnson & Johnson $JNJ

Key Points

• Wallace Capital Management reduced its Johnson & Johnson stake by 11% in the second quarter, selling 13,064 shares and retaining 105,306 shares worth approximately $26.7 million. Institutional investors and hedge funds collectively own 69.55% of JNJ.
• Analyst sentiment remains positive, with JNJ holding a “Moderate Buy” consensus rating and an average price target of $272.83. Recent quarterly results also exceeded expectations, with EPS of $2.90 and revenue of $25.31 billion.
• JNJ’s quarterly dividend is $1.34 per share, or $5.36 annualized, representing a 1.9% yield. However, insider selling, elevated valuation after a roughly 60% annual gain, and ongoing talc litigation present potential risks.

Wallace Capital Management Inc. cut its stake in shares of Johnson & Johnson (NYSE:JNJ - Free Report) by 11.0% in the second quarter, according to the company in its most recent disclosure with the SEC. The firm owned 105,306 shares of the company's stock after selling 13,064 shares during the quarter. Johnson & Johnson makes up 2.9% of Wallace Capital Management Inc.'s portfolio, making the stock its 8th largest holding. Wallace Capital Management Inc.'s holdings in Johnson & Johnson were worth $26,744,000 as of its most recent filing with the SEC.

Other hedge funds have also made changes to their positions in the company. Auto Owners Insurance Co raised its stake in shares of Johnson & Johnson by 22,225.6% in the fourth quarter. Auto Owners Insurance Co now owns 69,419,308 shares of the company's stock valued at $1,436,633,000 after acquiring an additional 69,108,368 shares during the last quarter. Norges Bank acquired a new position in Johnson & Johnson in the fourth quarter worth $6,924,523,000. Capital World Investors acquired a new stake in shares of Johnson & Johnson in the fourth quarter valued at $2,005,942,000. Jupiter Topco LLC bought a new position in shares of Johnson & Johnson in the second quarter valued at about $1,967,399,000. Finally, Diamant Asset Management Inc. lifted its position in Johnson & Johnson by 24,436.5% during the 1st quarter. Diamant Asset Management Inc. now owns 4,473,008 shares of the company's stock worth $109,338,000 after buying an additional 4,454,778 shares in the last quarter. Institutional investors and hedge funds own 69.55% of the company's stock.

Analyst Ratings Changes

JNJ has been the subject of several research reports. Morgan Stanley raised their price objective on shares of Johnson & Johnson from $284.00 to $294.00 and gave the company an "overweight" rating in a research report on Thursday, July 16th. Leerink Partners raised shares of Johnson & Johnson from a "market perform" rating to an "outperform" rating and set a $265.00 price target for the company in a report on Wednesday, May 13th. Royal Bank Of Canada upped their price objective on Johnson & Johnson from $265.00 to $287.00 and gave the stock an "outperform" rating in a report on Monday, July 13th. The Goldman Sachs Group reissued a "buy" rating and issued a $282.00 target price on shares of Johnson & Johnson in a research note on Thursday, July 16th. Finally, HSBC set a $290.00 price target on Johnson & Johnson and gave the company a "buy" rating in a research note on Monday, July 6th. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, Johnson & Johnson currently has an average rating of "Moderate Buy" and a consensus price target of $272.83.

Insider Buying and Selling

In related news, EVP Vanessa Broadhurst sold 23,054 shares of the stock in a transaction on Monday, July 20th. The shares were sold at an average price of $251.27, for a total transaction of $5,792,778.58. Following the completion of the transaction, the executive vice president owned 23,003 shares in the company, valued at approximately $5,779,963.81. This represents a 50.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Jennifer Taubert sold 15,000 shares of the business's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $263.36, for a total transaction of $3,950,400.00. Following the sale, the executive vice president directly owned 194,451 shares in the company, valued at $51,210,615.36. This trade represents a 7.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 97,569 shares of company stock valued at $25,476,044 over the last ninety days. Insiders own 0.16% of the company's stock.

Key Stories Impacting Johnson & Johnson

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

• Positive Sentiment: Analyst sentiment remains supportive. JNJ received an upgrade that helped it reach a new 12-month high, while the broader analyst view is rated “Moderate Buy.” UBS also began coverage, potentially increasing institutional attention. Johnson & Johnson Reaches New 12-Month High Following Analyst Upgrade Johnson & Johnson Receives Average Rating of Moderate Buy
• Positive Sentiment: Johnson & Johnson’s 64-year record of dividend growth remains a key support for income-oriented investors. Strong profitability and the company’s diversified healthcare portfolio help sustain the dividend despite competitive pressure on a major drug. Johnson & Johnson Is Boring Which Makes Its Dividend Nearly Perfect
• Neutral Sentiment: Management will discuss the business at the Deutsche Bank Healthcare Summit on September 17. The event could provide updates on pharmaceuticals, litigation and forward guidance, but it is not itself a change to earnings expectations. Johnson & Johnson to Participate in the Deutsche Bank 2026 Healthcare Summit
• Negative Sentiment: Profit-taking and valuation risk are elevated after JNJ gained about 60% over the past year versus roughly 21% for the S&P 500. Analysts question whether the current price already discounts growth above management’s near-term outlook. Was JNJ Stock Rally Actually Its Own? Is Johnson & Johnson Stock Priced For More Growth Than It Has Guided?
• Negative Sentiment: An executive vice president sold 33,597 shares worth approximately $9.2 million, reducing his holdings by 56.9%. The sale may reinforce short-term concerns about insider conviction, although it does not change JNJ’s fundamentals. SEC insider transaction filing
• Negative Sentiment: An analyst lowered the FY2026 EPS forecast, adding pressure to expectations. Talc litigation also remains unresolved despite a proposed path toward settlement, while the Louisiana verdict continues to focus attention on legal liability and potential costs. Johnson & Johnson dividend and competition analysis

Johnson & Johnson Stock Performance

Shares of Johnson & Johnson stock opened at $275.12 on Monday. Johnson & Johnson has a 12 month low of $173.33 and a 12 month high of $281.07. 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 company has a market capitalization of $663.01 billion, a PE ratio of 31.88, a PEG ratio of 2.63 and a beta of 0.24. The stock's fifty day simple moving average is $261.98 and its 200 day simple moving average is $245.08.

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

Johnson & Johnson Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 8th. Investors of record on Tuesday, August 25th will be issued a dividend of $1.34 per share. The ex-dividend date is Tuesday, August 25th. This represents a $5.36 dividend on an annualized basis and a dividend yield of 1.9%. Johnson & Johnson's dividend payout ratio (DPR) is presently 62.11%.

About Johnson & Johnson

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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