Johnson & Johnson (NYSE:JNJ) Shares Down 1.9% - Time to Sell?

Key Points

• Johnson & Johnson shares fell 1.9% in Thursday trading, closing near $258.48 after trading as low as $258.13. Volume was lighter than average, suggesting the move may have been driven by near-term selling pressure or profit-taking.
• The company’s news flow remains largely positive, including FDA approval for its Dual Energy THERMOCOOL SMARTTOUCH SF Platform and commentary highlighting strength in its blockbuster pharma lineup. Analysts also continue to lean bullish, with an overall Moderate Buy rating and a consensus target price around $257.74.
• Fundamentals remain solid: Johnson & Johnson recently beat earnings and revenue estimates, raised its quarterly dividend to $1.34, and maintains strong balance-sheet metrics. Despite the recent dip, the stock still carries support from institutional ownership and a low-beta defensive profile.

Johnson & Johnson (NYSE:JNJ - Get Free Report)'s share price fell 1.9% during mid-day trading on Thursday . The company traded as low as $258.13 and last traded at $258.4810. 6,298,053 shares traded hands during trading, a decline of 25% from the average session volume of 8,433,620 shares. The stock had previously closed at $263.40.

Key Johnson & Johnson News

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

• Positive Sentiment: Jim Cramer said Johnson & Johnson “will have lots of good news” from its blockbuster drug lineup, reinforcing the view that the company’s pharma portfolio could keep supporting earnings and sentiment. Jim Cramer Says Johnson & Johnson “Will Have Lots of Good News About Its Myriad Blockbuster Drugs”
• Positive Sentiment: Johnson & Johnson received FDA approval for its Dual Energy THERMOCOOL SMARTTOUCH SF Platform, a dual-energy ablation system that could strengthen its electrophysiology business and expand its medtech growth opportunity. Johnson & Johnson Announces FDA Approval for the Dual Energy THERMOCOOL SMARTTOUCH SF Platform
• Positive Sentiment: Analysts and market-watch articles highlighted Johnson & Johnson as a “Strong Buy” Dividend Aristocrat and pointed to its history of earnings beats, which may be supporting confidence ahead of the next report. Will Johnson & Johnson (JNJ) Beat Estimates Again in Its Next Earnings Report?
• Neutral Sentiment: Some commentary suggests the stock may have gotten ahead of fundamentals, with one note arguing that optimism is elevated even though Johnson & Johnson’s operating picture remains strong. Johnson & Johnson: Stronger Fundamentals, But Too Much Optimism
• Negative Sentiment: Shares had recently pulled back from their highs, suggesting some near-term pressure may be coming from profit-taking or broader rotation out of defensive names. Johnson & Johnson (JNJ) Declines More Than Market: Some Information for Investors

Wall Street Analysts Forecast Growth

Several research firms have commented on JNJ. Daiwa Securities Group boosted their price target on shares of Johnson & Johnson from $237.00 to $246.00 and gave the stock an "outperform" rating in a research note on Thursday, April 16th. Guggenheim lifted their target price on Johnson & Johnson from $266.00 to $270.00 and gave the company a "buy" rating in a report on Friday, June 26th. Argus boosted their target price on Johnson & Johnson from $240.00 to $275.00 and gave the stock a "buy" rating in a research note on Thursday, April 16th. Morgan Stanley upped their price target on Johnson & Johnson from $283.00 to $284.00 and gave the stock an "overweight" rating in a report on Wednesday. Finally, Bank of America boosted their price objective on Johnson & Johnson from $253.00 to $254.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 15th. Twenty research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, Johnson & Johnson presently has an average rating of "Moderate Buy" and a consensus target price of $257.74.

Johnson & Johnson Trading Down 1.9%

The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.77 and a current ratio of 1.03. The firm has a market capitalization of $622.22 billion, a price-to-earnings ratio of 29.88, a PEG ratio of 2.62 and a beta of 0.24. The company has a 50-day moving average price of $235.85 and a 200-day moving average price of $232.52.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last posted its earnings results on Tuesday, April 14th. The company reported $2.70 earnings per share for the quarter, topping the consensus estimate of $2.68 by $0.02. The firm had revenue of $24.06 billion during the quarter, compared to analysts' expectations of $23.60 billion. Johnson & Johnson had a return on equity of 32.60% and a net margin of 21.83%.The firm's revenue was up 9.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.77 earnings per share. Johnson & Johnson has set its FY 2026 guidance at 11.450-11.650 EPS. As a group, research analysts forecast that Johnson & Johnson will post 11.57 EPS for the current fiscal year.

Johnson & Johnson Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 9th. Investors of record on Tuesday, May 26th were given a $1.34 dividend. This is a positive change from Johnson & Johnson's previous quarterly dividend of $1.30. The ex-dividend date of this dividend was Tuesday, May 26th. This represents a $5.36 dividend on an annualized basis and a dividend yield of 2.1%. Johnson & Johnson's payout ratio is 61.97%.

Insider Buying and Selling

In related news, EVP Kathryn E. Wengel sold 10,000 shares of the business's stock in a transaction 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 sale, the executive vice president directly owned 114,288 shares of the company's stock, valued at $27,560,551.20. The trade was a 8.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.16% of the stock is owned by corporate insiders.

Institutional Trading of Johnson & Johnson

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. lifted its stake in 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 buying an additional 3,731,074 shares during the last quarter. State Street Corp grew its position in shares of Johnson & Johnson by 1.3% during the fourth quarter. State Street Corp now owns 133,869,843 shares of the company's stock worth $27,704,364,000 after acquiring an additional 1,663,782 shares during the last quarter. Auto Owners Insurance Co increased its holdings in shares of Johnson & Johnson by 22,225.6% in the 4th 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 period. Geode Capital Management LLC increased its holdings in shares of Johnson & Johnson by 3.1% in the 4th quarter. Geode Capital Management LLC now owns 57,953,747 shares of the company's stock valued at $11,967,947,000 after acquiring an additional 1,738,292 shares during the period. Finally, Norges Bank purchased a new stake in Johnson & Johnson in the 4th quarter valued at $6,924,523,000. Institutional investors and hedge funds own 69.55% of the company's stock.

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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