Johnson & Johnson (NYSE:JNJ) Shares Down 2% After Insider Selling

Key Points

• Johnson & Johnson shares fell 2% in midday trading after Executive Vice President Kathryn E. Wengel disclosed the sale of 10,000 shares worth about $2.41 million.
• Despite the stock dip, Wall Street sentiment remains constructive: analysts have a Moderate Buy rating on JNJ, with an average price target of $253.04 and several firms recently raising targets.
• The company continues to show fundamental strength, with a recent earnings beat, a higher quarterly dividend of $1.34, and major new investment plans including more than $1 billion for U.S. Vision manufacturing in Jacksonville, Florida.

Shares of Johnson & Johnson (NYSE:JNJ - Get Free Report) dropped 2% during mid-day trading on Monday after an insider sold shares in the company. The stock traded as low as $233.58 and last traded at $236.0610. Approximately 7,497,829 shares traded hands during trading, a decline of 10% from the average daily volume of 8,307,371 shares. The stock had previously closed at $240.87.

Specifically, EVP Kathryn E. Wengel sold 10,000 shares of the company's stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $241.15, for a total transaction of $2,411,500.00. Following the sale, the executive vice president directly owned 114,288 shares in the company, valued at approximately $27,560,551.20. This represents a 8.05% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Analysts Set New Price Targets

JNJ has been the topic of several recent research reports. Argus upped their target price on shares of Johnson & Johnson from $240.00 to $275.00 and gave the company a "buy" rating in a research report on Thursday, April 16th. JPMorgan Chase & Co. upped their target price on shares of Johnson & Johnson from $250.00 to $260.00 and gave the company a "neutral" rating in a research report on Wednesday, April 15th. Morgan Stanley set a $283.00 target price on shares of Johnson & Johnson in a research report on Wednesday, April 15th. Weiss Ratings cut shares of Johnson & Johnson from a "buy (b+)" rating to a "buy (b)" rating in a research report on Friday, April 24th. Finally, Barclays upped their target price on shares of Johnson & Johnson from $234.00 to $255.00 and gave the company an "equal weight" rating in a research report on Wednesday, April 15th. Twenty analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $253.04.

More Johnson & Johnson News

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

• Positive Sentiment: Johnson & Johnson announced a more than $1 billion investment in Jacksonville, Florida to expand U.S. Vision manufacturing, packaging, and distribution capacity. The move supports its Vision business, aligns with its larger U.S. manufacturing push, and signals continued commitment to domestic growth. Johnson & Johnson Invests more than $1 Billion to Strengthen U.S. Vision Manufacturing in Jacksonville, Florida
• Positive Sentiment: The company also received attention for breakthrough IMAAVY (nipocalimab) data in warm autoimmune hemolytic anemia, with U.S. FDA Priority Review backing the therapy’s growth potential in a rare-disease market. IMAAVY Breakthrough And Priority Review Reframe Johnson And Johnson Growth Story
• Positive Sentiment: Johnson & Johnson is benefiting from renewed investor focus on its pipeline and capital deployment, including commentary that the stock has been gaining on improving sentiment around growth initiatives and dividend strength. Jim Cramer Explains Johnson & Johnson’s (JNJ) Shares Have Gained
• Neutral Sentiment: A separate article highlighted BlackBerry QNX being used in a Johnson & Johnson AI-powered heart pump, which is notable for innovation but does not appear to be a major direct stock-moving catalyst yet. BlackBerry QNX Extends Beyond Autos As Valuation Runs Ahead Of Targets
• Negative Sentiment: Broader market articles warning about an overheated AI/Nasdaq trade and general risk-off sentiment may be weighing on large-cap healthcare stocks like JNJ, even though they are not company-specific negatives. Today’s AI market hits all 5 warning signs that preceded 2000 Nasdaq crash.

Johnson & Johnson Price Performance

The company has a current ratio of 1.03, a quick ratio of 0.77 and a debt-to-equity ratio of 0.46. The company has a market capitalization of $568.25 billion, a PE ratio of 27.29, a price-to-earnings-growth ratio of 2.36 and a beta of 0.26. The stock's 50-day moving average is $231.51 and its two-hundred day moving average is $227.35.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last posted its quarterly earnings data on Tuesday, April 14th. The company reported $2.70 earnings per share for the quarter, topping analysts' consensus estimates of $2.68 by $0.02. Johnson & Johnson had a net margin of 21.83% and a return on equity of 32.60%. The company had revenue of $24.06 billion for the quarter, compared to analyst estimates of $23.60 billion. During the same period in the prior year, the company posted $2.77 EPS. The firm's revenue for the quarter was up 9.9% on a year-over-year basis. Johnson & Johnson has set its FY 2026 guidance at 11.450-11.650 EPS. On average, equities analysts predict that Johnson & Johnson will post 11.57 EPS for the current year.

Johnson & Johnson Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 9th. Shareholders of record on Tuesday, May 26th were paid a $1.34 dividend. The ex-dividend date was Tuesday, May 26th. This represents a $5.36 dividend on an annualized basis and a yield of 2.3%. This is an increase from Johnson & Johnson's previous quarterly dividend of $1.30. Johnson & Johnson's payout ratio is currently 61.97%.

Hedge Funds Weigh In On Johnson & Johnson

A number of hedge funds have recently added to or reduced their stakes in JNJ. Brighton Jones LLC boosted its stake in shares of Johnson & Johnson by 13.9% during the fourth quarter. Brighton Jones LLC now owns 51,876 shares of the company's stock valued at $7,502,000 after purchasing an additional 6,332 shares in the last quarter. United Bank boosted its stake in shares of Johnson & Johnson by 110.7% during the first quarter. United Bank now owns 9,279 shares of the company's stock valued at $1,539,000 after purchasing an additional 4,876 shares in the last quarter. Sivia Capital Partners LLC boosted its stake in shares of Johnson & Johnson by 13.4% during the second quarter. Sivia Capital Partners LLC now owns 5,863 shares of the company's stock valued at $896,000 after purchasing an additional 692 shares in the last quarter. Wealth Group Ltd. boosted its stake in shares of Johnson & Johnson by 12.8% during the second quarter. Wealth Group Ltd. now owns 1,482 shares of the company's stock valued at $226,000 after purchasing an additional 168 shares in the last quarter. Finally, Schnieders Capital Management LLC. boosted its stake in Johnson & Johnson by 9.8% in the second quarter. Schnieders Capital Management LLC. now owns 73,680 shares of the company's stock valued at $11,255,000 after acquiring an additional 6,584 shares in the last quarter. 69.55% of the stock is currently owned by institutional investors.

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.

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