Johnson & Johnson (NYSE:JNJ) Trading 1% Higher - Should You Buy?

Key Points

• Johnson & Johnson reported Q1 EPS of $2.70 (vs. $2.68 expected) with revenue up 9.9%, set FY2026 guidance at 11.45–11.65 EPS, and raised its quarterly dividend to $1.34 (a 2.4% yield).
• The FDA granted Priority Review to IMAAVY (nipocalimab) for warm autoimmune hemolytic anemia, and J&J agreed to acquire Atraverse Medical—steps that could speed a drug approval and strengthen its cardiovascular MedTech franchise.
• Analyst sentiment is broadly positive with a consensus "Moderate Buy" and an average price target of $252.48, while the stock recently traded near $227.67 after some short‑term weakness.

Johnson & Johnson (NYSE:JNJ - Get Free Report) shares traded up 1% during trading on Tuesday . The company traded as high as $231.03 and last traded at $227.6680. 6,945,832 shares traded hands during mid-day trading, a decline of 19% from the average session volume of 8,597,717 shares. The stock had previously closed at $225.34.

Johnson & Johnson News Roundup

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

• Positive Sentiment: FDA grants Priority Review to IMAAVY (nipocalimab) for warm autoimmune hemolytic anemia — a faster review (≈6 months) increases the chance of an earlier approval and revenue upside if approved. FDA grants Priority Review for IMAAVY
• Positive Sentiment: JNJ agreed to acquire Atraverse Medical to expand its cardiovascular/left‑heart access and ablation portfolio — an M&A move that bolsters MedTech growth opportunities in atrial fibrillation and cardiac rhythm management. Johnson And Johnson Expands Heart Portfolio With Atraverse Deal
• Positive Sentiment: Zacks notes MedTech showed continued improvement in Q1 and the company sees a better 2026 — stronger device trends reduce near‑term earnings risk and support the company’s FY26 guidance. J&J Sees Continued MedTech Improvement in Q1, Eyes Better 2026
• Positive Sentiment: Management highlighted AI is cutting the time to generate drug leads by ~50% — improved R&D efficiency can lower development costs and accelerate pipeline progression over time. J&J sees AI halving the time to generate drug development leads
• Neutral Sentiment: Analyses flag recent share‑price weakness and valuation re‑rating after a ~6% one‑month decline — this keeps JNJ on the radar for value/dividend investors but also signals short‑term volatility. A Look At Johnson & Johnson (JNJ) Valuation After Recent Share Price Weakness
• Neutral Sentiment: JNJ continues to be highlighted as a quality dividend holding in retail and social lists — positive for long‑term income investors but unlikely to move fundamentals. Johnson & Johnson (JNJ) – Among the 10 Best Quality Dividend Stocks to Buy According to Reddit
• Neutral Sentiment: Management will present at Bernstein’s Strategic Decisions Conference (May 27) — an investor event that could provide additional forward guidance or clarity on strategy. Johnson & Johnson to Participate in the Bernstein's 42nd Annual Strategic Decisions Conference
• Negative Sentiment: Report that J&J plans to sell some prescription drugs to TrumpRx as a cost‑reduction measure — could signal margin pressure or lower pricing on affected products and may draw political/regulatory scrutiny. Johnson & Johnson Plans to Sell Prescription Drugs to TrumpRx in Cost-Reduction Push

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the company. Weiss Ratings cut Johnson & Johnson from a "buy (b+)" rating to a "buy (b)" rating in a research note on Friday. Leerink Partners lifted their price objective on Johnson & Johnson from $232.00 to $252.00 and gave the company a "market perform" rating in a report on Wednesday, April 15th. Wolfe Research boosted their price objective on Johnson & Johnson from $225.00 to $240.00 and gave the company an "outperform" rating in a research report on Monday, January 5th. Wall Street Zen cut Johnson & Johnson from a "buy" rating to a "hold" rating in a research note on Saturday, February 14th. Finally, JPMorgan Chase & Co. raised their target price on shares of Johnson & Johnson from $250.00 to $260.00 and gave the stock a "neutral" rating in a report on Wednesday, April 15th. Eighteen research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $252.48.

Johnson & Johnson Trading Up 1.0%

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 company has a market capitalization of $548.05 billion, a P/E ratio of 26.32, a price-to-earnings-growth ratio of 2.23 and a beta of 0.34. The business has a fifty day moving average price of $239.82 and a 200 day moving average price of $219.11.

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 (EPS) for the quarter, topping analysts' consensus estimates of $2.68 by $0.02. Johnson & Johnson had a return on equity of 32.60% and a net margin of 21.83%.During the same quarter in the prior year, the firm earned $2.77 earnings per share. The business's quarterly revenue was up 9.9% compared to the same quarter last year. Johnson & Johnson has set its FY 2026 guidance at 11.450-11.650 EPS. On average, analysts expect that Johnson & Johnson will post 11.57 earnings per share for the current fiscal year.

Johnson & Johnson Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 9th. Stockholders of record on Tuesday, May 26th will be given a $1.34 dividend. This is a boost from Johnson & Johnson's previous quarterly dividend of $1.30. This represents a $5.36 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Tuesday, May 26th. Johnson & Johnson's payout ratio is presently 61.97%.

Insider Buying and Selling at Johnson & Johnson

In other news, EVP Vanessa Broadhurst sold 6,197 shares of the stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $243.39, for a total transaction of $1,508,287.83. Following the completion of the transaction, the executive vice president directly owned 23,003 shares in the company, valued at $5,598,700.17. This represents a 21.22% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Timothy Schmid sold 22,623 shares of Johnson & Johnson stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $244.33, for a total value of $5,527,477.59. Following the completion of the sale, the executive vice president directly owned 26,769 shares in the company, valued at approximately $6,540,469.77. This represents a 45.80% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 30,142 shares of company stock valued at $7,360,528 in the last 90 days. 0.16% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. DGS Capital Management LLC increased its holdings in Johnson & Johnson by 41.2% during the first quarter. DGS Capital Management LLC now owns 13,631 shares of the company's stock worth $3,332,000 after buying an additional 3,976 shares during the last quarter. Indiana Trust & Investment Management Co lifted its stake in Johnson & Johnson by 5.9% in the first quarter. Indiana Trust & Investment Management Co now owns 12,549 shares of the company's stock valued at $3,067,000 after acquiring an additional 700 shares during the last quarter. Ascentis Independent Advisors grew its position in shares of Johnson & Johnson by 57.7% in the 1st quarter. Ascentis Independent Advisors now owns 36,150 shares of the company's stock valued at $8,837,000 after acquiring an additional 13,224 shares during the period. Seascape Capital Management bought a new position in shares of Johnson & Johnson in the 1st quarter valued at about $229,000. Finally, Argus Investors Counsel Inc. increased its stake in shares of Johnson & Johnson by 48.1% during the 1st quarter. Argus Investors Counsel Inc. now owns 3,017 shares of the company's stock worth $737,000 after purchasing an additional 980 shares during the last quarter. Institutional investors and hedge funds own 69.55% of the company's stock.

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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