Johnson & Johnson (NYSE:JNJ) Stock Price Down 3.6% - Time to Sell?

Key Points

• Johnson & Johnson shares fell 3.6% to about $255.85, as investors reacted to lower 2026 profit guidance and the substantial costs of its Firefly Bio acquisition, Sail Biomedicines collaboration and proposed $5.5 billion talc settlement.
• The company’s long-term outlook received support from its biotech expansion and FDA Priority Review for RYBREVANT FASPRO, while quarterly earnings and revenue exceeded analyst expectations. Analysts maintain a “Moderate Buy” consensus with a $266.39 price target.
• J&J continues to offer income support through its $1.34 quarterly dividend, equivalent to a $5.36 annualized payout and a 2.1% yield, though recent insider stock sales and conditional talc-settlement requirements remain potential concerns.

Johnson & Johnson (NYSE:JNJ - Get Free Report)'s stock price was down 3.6% during trading on Thursday . The company traded as low as $254.56 and last traded at $255.8450. Approximately 8,182,555 shares traded hands during mid-day trading, a decline of 3% from the average session volume of 8,445,013 shares. The stock had previously closed at $265.53.

Key Headlines Impacting Johnson & Johnson

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

• Positive Sentiment: Biotech expansion strengthens J&J’s long-term pipeline. The company completed its $1 billion cash acquisition of Firefly Bio, adding a degrader antibody conjugate platform focused on difficult-to-treat solid tumors. J&J also agreed to pay Sail Biomedicines $785 million initially for in-vivo CAR-T development, with an exclusive option to acquire Sail for $2.58 billion. The deals could expand its oncology and autoimmune-drug opportunities, although they require significant investment. Firefly acquisition article
• Positive Sentiment: RYBREVANT FASPRO received FDA Priority Review. The review covers a potential first-in-class subcutaneous treatment for advanced head and neck cancer. Clinical data showed a 42% overall response rate, supporting the commercial potential of J&J’s oncology portfolio if approved. RYBREVANT FASPRO FDA review article
• Positive Sentiment: Some earnings expectations improved. Erste Group raised its 2026 EPS estimate to $11.68 from $11.56 and lifted its 2027 estimate to $12.81 from $12.70, reinforcing the view that J&J’s core business remains resilient. J&J earnings estimate article
• Neutral Sentiment: The talc settlement reduces legal uncertainty but remains conditional. J&J proposed a $5.5 billion resolution covering approximately 76,000 ovarian-cancer claims. The agreement requires at least 95% claimant participation, and payments would begin in 2027, leaving execution and liability risks. Reuters talc settlement explainer
• Negative Sentiment: Near-term profit pressure is the main stock headwind. J&J lowered its 2026 profit forecast, citing the combined financial impact of the Firefly acquisition and Sail collaboration. Investors appear to be shifting from relief over the talc agreement to concerns about its $5.5 billion cash commitment and the cost of the new deals, while also taking profits after the recent rally. Reuters profit forecast article

Analysts Set New Price Targets

A number of research firms have recently issued reports on JNJ. Stifel Nicolaus set a $260.00 target price on shares of Johnson & Johnson in a research note on Wednesday, July 15th. Guggenheim restated a "buy" rating and set a $270.00 price target on shares of Johnson & Johnson in a research report on Friday, July 17th. Sanford C. Bernstein raised their price target on Johnson & Johnson from $225.00 to $251.00 and gave the company a "market perform" rating in a report on Wednesday, April 15th. Raymond James Financial lifted their price objective on Johnson & Johnson from $258.00 to $265.00 and gave the company an "outperform" rating in a research report on Thursday, July 16th. Finally, The Goldman Sachs Group restated a "buy" rating and set a $282.00 target price on shares of Johnson & Johnson in a report on Thursday, July 16th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, Johnson & Johnson has a consensus rating of "Moderate Buy" and a consensus target price of $266.39.

Johnson & Johnson Price Performance

The company has a debt-to-equity ratio of 0.44, a current ratio of 1.09 and a quick ratio of 0.81. The company's 50 day moving average price is $244.93 and its 200 day moving average price is $237.82. The firm has a market capitalization of $616.56 billion, a P/E ratio of 29.65, a PEG ratio of 2.53 and a beta of 0.24.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last posted its quarterly earnings data on Wednesday, July 15th. The company reported $2.90 earnings per share for the quarter, topping the consensus estimate of $2.84 by $0.06. Johnson & Johnson had a net margin of 21.48% and a return on equity of 32.42%. The firm had revenue of $25.31 billion during the quarter, compared to analysts' expectations of $25.06 billion. During the same quarter in the previous year, the company posted $2.77 EPS. Johnson & Johnson's revenue was up 6.6% on a year-over-year basis. Johnson & Johnson has set its FY 2026 guidance at 11.600-11.750 EPS. As a group, sell-side analysts anticipate that Johnson & Johnson will post 11.68 EPS for the current fiscal year.

Johnson & Johnson Announces Dividend

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

Insider Buying and Selling at Johnson & Johnson

In other Johnson & Johnson news, EVP Vanessa Broadhurst sold 23,054 shares of the company's stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $251.27, for a total transaction of $5,792,778.58. Following the transaction, the executive vice president directly owned 23,003 shares in the company, valued at approximately $5,779,963.81. This represents a 50.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Kathryn E. Wengel sold 10,000 shares of the firm'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 completion of the transaction, the executive vice president directly owned 114,288 shares in the company, valued at $27,560,551.20. This trade represents a 8.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.16% of the company's stock.

Hedge Funds Weigh In On Johnson & Johnson

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

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.