Johnson & Johnson (NYSE:JNJ) Shares Down 2.5% - Time to Sell?

Key Points

• Johnson & Johnson shares fell 2.5% on Thursday, trading as low as $227.60 amid heavy volume that was well above average.
• Despite the dip, Wall Street remains constructive: several analysts recently raised price targets, and the stock carries a Moderate Buy consensus with an average target of $253.04.
• The company posted better-than-expected quarterly results, lifted its dividend to $1.34 per share, and maintained FY 2026 EPS guidance of 11.45 to 11.65.

Johnson & Johnson (NYSE:JNJ - Get Free Report)'s stock price dropped 2.5% on Thursday . The company traded as low as $227.60 and last traded at $228.3670. 18,876,396 shares were traded during trading, an increase of 125% from the average daily volume of 8,393,819 shares. The stock had previously closed at $234.20.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on JNJ shares. The Goldman Sachs Group increased their price objective on shares of Johnson & Johnson from $265.00 to $275.00 and gave the stock a "buy" rating in a report on Wednesday, April 15th. Wells Fargo & Company raised their price target on Johnson & Johnson from $240.00 to $263.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 15th. Morgan Stanley set a $283.00 price target on Johnson & Johnson in a report on Wednesday, April 15th. Sanford C. Bernstein lifted their target price on shares of Johnson & Johnson from $225.00 to $251.00 and gave the company a "market perform" rating in a research note on Wednesday, April 15th. Finally, Raymond James Financial boosted their price target on shares of Johnson & Johnson from $237.00 to $258.00 and gave the stock an "outperform" rating in a research note on Wednesday, April 15th. Twenty research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $253.04.

Johnson & Johnson Stock Performance

The stock has a fifty day moving average of $231.07 and a 200-day moving average of $227.93. The company has a quick ratio of 0.77, a current ratio of 1.03 and a debt-to-equity ratio of 0.46. The firm has a market capitalization of $549.73 billion, a P/E ratio of 26.40, a P/E/G ratio of 2.30 and a beta of 0.26.

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

Johnson & Johnson Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 9th. Investors of record on Tuesday, May 26th were paid a $1.34 dividend. This is a boost from Johnson & Johnson's previous quarterly dividend of $1.30. This represents a $5.36 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend was Tuesday, May 26th. Johnson & Johnson's dividend payout ratio (DPR) is 61.97%.

Insider Activity

In other news, 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 value of $2,411,500.00. Following the sale, the executive vice president directly owned 114,288 shares of the company's stock, valued at approximately $27,560,551.20. This represents a 8.05% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.16% of the company's stock.

Institutional Investors Weigh In On Johnson & Johnson

A number of large investors have recently added to or reduced their stakes in JNJ. Greenberg Financial Group acquired a new position in Johnson & Johnson during the fourth quarter worth about $954,000. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in Johnson & Johnson by 4.3% during the 3rd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 5,030,835 shares of the company's stock worth $932,835,000 after purchasing an additional 208,765 shares during the last quarter. World Investment Advisors boosted its stake in shares of Johnson & Johnson by 19.6% in the 4th quarter. World Investment Advisors now owns 161,343 shares of the company's stock valued at $33,390,000 after purchasing an additional 26,450 shares during the last quarter. JT Stratford LLC boosted its position in shares of Johnson & Johnson by 7.6% during the 3rd quarter. JT Stratford LLC now owns 59,577 shares of the company's stock valued at $11,047,000 after purchasing an additional 4,216 shares in the last quarter. Finally, Coldstream Capital Management Inc. increased its stake in shares of Johnson & Johnson by 9.8% in the 3rd quarter. Coldstream Capital Management Inc. now owns 95,662 shares of the company's stock valued at $17,738,000 after acquiring an additional 8,533 shares in the last quarter. Institutional investors 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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