Johnson & Johnson (NYSE:JNJ) Shares Up 2% - Here's Why

Key Points

• J&J shares rose 2% after the FDA granted marketing authorization for its OTTAVA robotic surgery system, a milestone that expands the company further into the fast-growing surgical robotics market.
• Analysts have turned more constructive on the stock, with multiple firms raising price targets and issuing buy ratings. MarketBeat data shows J&J now has an average rating of “Moderate Buy” and an average target price of $265.30.
• The company also reported solid fundamentals, beating quarterly EPS and revenue estimates and raising its full-year guidance. J&J additionally increased its quarterly dividend to $1.34 per share, reinforcing its appeal as a defensive income stock.

Shares of Johnson & Johnson (NYSE:JNJ - Get Free Report) were up 2% during mid-day trading on Wednesday . The stock traded as high as $256.29 and last traded at $255.7140. 8,619,168 shares were traded during trading, an increase of 2% from the average daily volume of 8,454,772 shares. The stock had previously closed at $250.61.

Trending Headlines about Johnson & Johnson

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

• Positive Sentiment: The FDA granted marketing authorization for J&J’s OTTAVA robotic surgery system, a meaningful strategic milestone that expands the company into the fast-growing surgical robotics market. Reuters: Johnson & Johnson's robotic surgery device gets US FDA marketing authorization
• Positive Sentiment: Multiple reports highlighted the OTTAVA approval as a catalyst, with analysts and market commentary pointing to renewed growth optionality for J&J’s MedTech segment. Benzinga: FDA Approves Johnson & Johnson Table-Integrated OTTAVA Robotic Surgery System
• Positive Sentiment: J&J also raised its quarterly dividend to $1.34 per share and recently lifted full-year sales guidance, supporting the stock’s appeal for income and defensive-growth investors. Yahoo Finance: Johnson & Johnson Raised Its Dividend, Where Does Fair Value Sit?
• Neutral Sentiment: Recent commentary on J&J as a “high-growth dividend stock” and a Dividend Aristocrat keeps investor attention on the company, but these pieces are more about valuation and income profile than a new fundamental catalyst. Yahoo Finance: Are You Looking for a High-Growth Dividend Stock?
• Neutral Sentiment: Broader healthcare coverage comparing J&J with Abbott underscores J&J’s portfolio pruning strategy, but it does not add a fresh earnings or product surprise. 24/7 Wall St: Johnson & Johnson vs Abbott Laboratories

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on JNJ. Royal Bank Of Canada increased their price target on Johnson & Johnson from $265.00 to $287.00 and gave the stock an "outperform" rating in a report on Monday, July 13th. Leerink Partners upgraded shares of Johnson & Johnson from a "market perform" rating to an "outperform" rating and set a $265.00 price objective on the stock in a report on Wednesday, May 13th. Weiss Ratings cut shares of Johnson & Johnson from a "buy (b)" rating to a "buy (b-)" rating in a research report on Monday, June 15th. HSBC set a $290.00 price target on shares of Johnson & Johnson and gave the company a "buy" rating in a research report on Monday, July 6th. Finally, Argus upped their price objective on shares of Johnson & Johnson from $240.00 to $275.00 and gave the stock a "buy" rating in a report on Thursday, April 16th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, Johnson & Johnson has an average rating of "Moderate Buy" and an average target price of $265.30.

Johnson & Johnson Trading Up 2.0%

The company has a 50 day moving average of $240.90 and a 200-day moving average of $235.42. The stock has a market cap of $615.56 billion, a price-to-earnings ratio of 29.63, a price-to-earnings-growth ratio of 2.35 and a beta of 0.24. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.77 and a current ratio of 1.03.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last released its earnings results on Wednesday, July 15th. The company reported $2.90 earnings per share for the quarter, beating the consensus estimate of $2.84 by $0.06. The company had revenue of $25.31 billion during the quarter, compared to the consensus estimate of $25.06 billion. Johnson & Johnson had a return on equity of 32.86% and a net margin of 21.48%.Johnson & Johnson's revenue was up 6.6% compared to the same quarter last year. During the same period in the previous year, the company posted $2.77 EPS. Johnson & Johnson has set its FY 2026 guidance at 11.600-11.750 EPS. On average, research analysts anticipate that Johnson & Johnson will post 11.68 earnings per share for the current year.

Johnson & Johnson Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 8th. Investors of record on Tuesday, August 25th will be paid a dividend of $1.34 per share. This represents a $5.36 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Tuesday, August 25th. Johnson & Johnson's dividend payout ratio is presently 62.11%.

Insider Buying and Selling

In other Johnson & Johnson news, EVP Kathryn E. Wengel sold 10,000 shares of the firm's stock in a transaction that occurred 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 transaction, the executive vice president owned 114,288 shares of the company's stock, valued at $27,560,551.20. This trade represents a 8.05% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 0.16% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Greenberg Financial Group acquired a new stake in shares of Johnson & Johnson in the 4th quarter valued at about $954,000. World Investment Advisors increased its position in Johnson & Johnson by 19.6% during the fourth quarter. World Investment Advisors now owns 161,343 shares of the company's stock worth $33,390,000 after buying an additional 26,450 shares during the period. Benchmark Financial LLC purchased a new stake in Johnson & Johnson in the fourth quarter valued at approximately $554,000. Principal Financial Group Inc. boosted its holdings in shares of Johnson & Johnson by 0.8% in the fourth quarter. Principal Financial Group Inc. now owns 3,410,177 shares of the company's stock valued at $705,736,000 after acquiring an additional 28,370 shares during the period. Finally, Robinhood Asset Management LLC acquired a new stake in shares of Johnson & Johnson in the fourth quarter valued at approximately $11,853,000. 69.55% of the stock is currently owned by hedge funds and other 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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