Johnson & Johnson (NYSE:JNJ) Stock Price Up 1.6% - Here's Why

Key Points

• Johnson & Johnson shares rose 1.6% on Friday, touching an intraday high of $263.71 after strong recent company news helped lift sentiment.
• The biggest positives included better-than-expected Q2 earnings and raised guidance, plus signs that the Innovative Medicine unit is holding up despite the Stelara patent loss.
• Investors are also encouraged by pipeline and strategic developments, including promising TECVAYLI + TALVEY data, FDA authorization for the OTTAVA robotic surgical system, and easing talc-litigation overhang after a federal judge questioned a large batch of claims.

Johnson & Johnson (NYSE:JNJ - Get Free Report)'s stock price rose 1.6% on Friday . The stock traded as high as $263.71 and last traded at $263.43. Approximately 6,332,560 shares changed hands during trading, a decline of 25% from the average daily volume of 8,427,021 shares. The stock had previously closed at $259.27.

Key Headlines Impacting Johnson & Johnson

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

• Positive Sentiment: J&J’s Q2 results and raised outlook are helping sentiment, with the company highlighted as one of several firms lifting guidance after a strong quarter. Q2 Earnings: Guidance Upgrades Push These 3 Stocks Higher
• Positive Sentiment: Johnson & Johnson said its Innovative Medicine unit delivered strong Q2 growth despite the Stelara patent loss, suggesting the pharma business is holding up better than feared. J&J's Innovative Medicine Unit Proves Its Resilience in Q2
• Positive Sentiment: Positive late-stage data for TECVAYLI + TALVEY in relapsed/refractory multiple myeloma adds confidence in J&J’s oncology pipeline and supports longer-term growth prospects. TECVAYLI® + TALVEY® reduced the risk of disease progression or death by 89% and the risk of death by 62% in earlier-line relapsed/refractory multiple myeloma
• Positive Sentiment: The FDA’s De Novo authorization for the OTTAVA robotic surgical system gives J&J a new foothold in U.S. soft-tissue robotic surgery, broadening its medtech growth optionality. Should FDA’s De Novo Nod for OTTAVA Robotic System Require Action From Johnson & Johnson (JNJ) Investors?
• Neutral Sentiment: Several commentary pieces praised J&J as a defensive dividend stock and a steadier name during market volatility, which supports the company’s defensive profile but does not change fundamentals directly. 3 Dividend Stocks Baby Boomers Should Own for the Rest of Their Lives
• Neutral Sentiment: A federal judge cast doubt on a large batch of talc-cancer claims, which may reduce legal overhang for J&J, though the litigation is still ongoing and not fully resolved. US judge casts doubt on 69,000 cases alleging J&J talc caused cancer

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on JNJ shares. Leerink Partners raised Johnson & Johnson from a "market perform" rating to an "outperform" rating and set a $265.00 target price for the company in a report on Wednesday, May 13th. Sanford C. Bernstein lifted their price target on Johnson & Johnson from $225.00 to $251.00 and gave the stock a "market perform" rating in a research report on Wednesday, April 15th. Barclays increased their price objective on Johnson & Johnson from $234.00 to $255.00 and gave the company an "equal weight" rating in a report on Wednesday, April 15th. Argus raised their target price on shares of Johnson & Johnson from $240.00 to $275.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. Finally, Morgan Stanley upped their price target on shares of Johnson & Johnson from $284.00 to $294.00 and gave the company an "overweight" rating in a research report on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, Johnson & Johnson presently has an average rating of "Moderate Buy" and a consensus target price of $265.30.

Johnson & Johnson Price Performance

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 company's fifty day simple moving average is $241.98 and its two-hundred day simple moving average is $236.13. The stock has a market capitalization of $634.13 billion, a PE ratio of 30.52, a P/E/G ratio of 2.43 and a beta of 0.24.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last posted its earnings results on Wednesday, July 15th. The company reported $2.90 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.84 by $0.06. The firm had revenue of $25.31 billion for the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.77 EPS. Johnson & Johnson has set its FY 2026 guidance at 11.600-11.750 EPS. As a group, sell-side analysts predict that Johnson & Johnson will post 11.68 EPS for the current year.

Johnson & Johnson Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Tuesday, August 25th will be paid a $1.34 dividend. This represents a $5.36 annualized dividend and a yield of 2.0%. The ex-dividend date of this dividend is Tuesday, August 25th. Johnson & Johnson's payout ratio is presently 62.11%.

Insider Activity at Johnson & Johnson

In related news, EVP Kathryn E. Wengel sold 10,000 shares of the company's stock in a transaction on Thursday, June 11th. The stock was 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 directly owned 114,288 shares in the company, valued at approximately $27,560,551.20. This represents a 8.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.16% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Johnson & Johnson

Several institutional investors and hedge funds have recently bought and sold shares of JNJ. Bank Pictet & Cie Europe AG increased its position in Johnson & Johnson by 1.1% during the 2nd quarter. Bank Pictet & Cie Europe AG now owns 8,628 shares of the company's stock worth $2,191,000 after purchasing an additional 95 shares in the last quarter. Provenance Wealth Advisors LLC lifted its holdings in Johnson & Johnson by 2.3% in the 2nd quarter. Provenance Wealth Advisors LLC now owns 5,052 shares of the company's stock worth $1,283,000 after buying an additional 114 shares in the last quarter. Munich Reinsurance Co Stock Corp in Munich lifted its stake in shares of Johnson & Johnson by 277.1% in the second quarter. Munich Reinsurance Co Stock Corp in Munich now owns 66,880 shares of the company's stock worth $16,986,000 after acquiring an additional 49,146 shares in the last quarter. Nicholas Wealth LLC. purchased a new position in shares of Johnson & Johnson during the 2nd quarter valued at approximately $254,000. Finally, Aventus Investment Advisors Inc. grew its holdings in Johnson & Johnson by 63.5% during the 2nd quarter. Aventus Investment Advisors Inc. now owns 340 shares of the company's stock worth $86,000 after acquiring an additional 132 shares in the last quarter. 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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