Johnson & Johnson (NYSE:JNJ) Sets New 12-Month High Following Strong Earnings

Key Points

• Johnson & Johnson reached a new 52-week high of $194.40 following a stronger-than-expected earnings report, with earnings per share of $2.26 and revenue of $24.02 billion for the quarter.
• The company announced a quarterly dividend of $1.30 per share, representing an annualized rate of $5.20 and a dividend yield of 2.8%.
• Several analysts have increased their price targets for Johnson & Johnson, with new price objectives ranging from $176.00 to $210.00, indicating a general positive outlook for the stock.

Johnson & Johnson (NYSE:JNJ - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $194.40 and last traded at $188.32, with a volume of 2904788 shares changing hands. The stock had previously closed at $190.90.

The company reported $2.26 earnings per share for the quarter. The business had revenue of $24.02 billion during the quarter. Johnson & Johnson had a net margin of 25.00% and a return on equity of 32.49%.

Johnson & Johnson Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 9th. Investors of record on Tuesday, November 25th will be issued a $1.30 dividend. This represents a $5.20 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date is Tuesday, November 25th. Johnson & Johnson's dividend payout ratio (DPR) is currently 55.61%.

Analysts Set New Price Targets

Several brokerages recently weighed in on JNJ. Royal Bank Of Canada reissued an "outperform" rating and issued a $209.00 price objective on shares of Johnson & Johnson in a report on Friday. Sanford C. Bernstein boosted their price objective on Johnson & Johnson from $172.00 to $193.00 and gave the stock a "market perform" rating in a report on Monday, October 6th. Barclays boosted their target price on Johnson & Johnson from $165.00 to $176.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 17th. Guggenheim upgraded Johnson & Johnson from a "neutral" rating to a "buy" rating and boosted their price objective for the company from $167.00 to $206.00 in a research report on Tuesday, September 23rd. Finally, HSBC boosted their price objective on Johnson & Johnson from $188.00 to $210.00 in a research report on Tuesday, September 30th. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $192.94.

Insider Transactions at Johnson & Johnson

In other Johnson & Johnson news, EVP Jennifer L. Taubert sold 56,471 shares of Johnson & Johnson stock in a transaction on Thursday, September 4th. The stock was sold at an average price of $177.81, for a total transaction of $10,041,108.51. Following the completion of the sale, the executive vice president directly owned 178,013 shares of the company's stock, valued at $31,652,491.53. The trade was a 24.08% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.16% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Johnson & Johnson

Several institutional investors and hedge funds have recently modified their holdings of the stock. Evolution Wealth Management Inc. acquired a new stake in shares of Johnson & Johnson in the second quarter valued at approximately $27,000. Semmax Financial Advisors Inc. grew its holdings in shares of Johnson & Johnson by 55.0% during the second quarter. Semmax Financial Advisors Inc. now owns 203 shares of the company's stock worth $31,000 after purchasing an additional 72 shares during the last quarter. GFG Capital LLC purchased a new position in shares of Johnson & Johnson during the second quarter worth about $35,000. Highline Wealth Partners LLC grew its holdings in shares of Johnson & Johnson by 51.8% during the first quarter. Highline Wealth Partners LLC now owns 252 shares of the company's stock worth $42,000 after buying an additional 86 shares during the last quarter. Finally, Stone House Investment Management LLC purchased a new stake in Johnson & Johnson in the 1st quarter valued at approximately $47,000. Institutional investors and hedge funds own 69.55% of the company's stock.

Johnson & Johnson Price Performance

The stock has a fifty day simple moving average of $178.88 and a two-hundred day simple moving average of $163.97. The company has a current ratio of 1.01, a quick ratio of 0.76 and a debt-to-equity ratio of 0.50. The company has a market cap of $453.27 billion, a PE ratio of 20.17, a price-to-earnings-growth ratio of 2.40 and a beta of 0.40.

About Johnson & Johnson

Johnson & Johnson is a holding company, which engages in the research, development, manufacture, and sale of products in the healthcare field. It operates through the Innovative Medicine and MedTech segments. The Innovative Medicine segment focuses on immunology, infectious diseases, neuroscience, oncology, cardiovascular and metabolism, and pulmonary hypertension.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.