Johnson & Johnson (NYSE:JNJ) Trading 3.3% Higher - Time to Buy?

Key Points

• Johnson & Johnson shares rose 3.3% to about $271, supported by FDA clearance for its AI-powered MONARCH QUEST 3 bronchoscopy system and progress on the OTTAVA robotic surgery platform.
• Recent fundamentals were solid: quarterly revenue increased 6.6% year over year to $25.31 billion, adjusted EPS beat estimates at $2.90, and management issued 2026 EPS guidance of $11.60–$11.75. The company also declared a $1.34 quarterly dividend, equivalent to a 2.0% yield.
• Despite a “Moderate Buy” analyst consensus, risks include mixed price targets, a recent median target of $263, and significant insider selling. The stock trades at roughly 31 times earnings following its advance.

Johnson & Johnson (NYSE:JNJ - Get Free Report) rose 3.3% during trading on Tuesday . The stock traded as high as $271.73 and last traded at $271.0480. 7,824,211 shares traded hands during trading, a decline of 5% from the average daily volume of 8,270,486 shares. The stock had previously closed at $262.37.

Key Johnson & Johnson News

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

• Positive Sentiment: FDA clearance strengthens the MedTech outlook. Johnson & Johnson received FDA clearance for the AI-powered MONARCH QUEST 3 bronchoscopy system. The software adds AI-assisted planning, improved navigation and expanded imaging capabilities, supporting broader use of the MONARCH platform in lung diagnostics. J&J secures FDA clearance for MONARCH QUEST 3 bronchoscopy system
• Positive Sentiment: Robotic surgery momentum is adding to investor enthusiasm. The regulatory progress for MONARCH QUEST 3 follows FDA authorization for J&J’s OTTAVA robotic surgical system, reinforcing the company’s strategy to build higher-growth businesses beyond pharmaceuticals. Why Johnson & Johnson stock is up today
• Positive Sentiment: Immunology and neuroscience are emerging as growth engines. New products in these areas are helping offset the loss of exclusivity for Stelara, easing concerns about the pharmaceutical portfolio’s longer-term growth. J&J's new growth powerhouses
• Positive Sentiment: Recent operating results provide fundamental support. J&J’s latest quarterly revenue rose 6.6% year over year to $25.31 billion, while adjusted earnings exceeded estimates. Management also set 2026 adjusted EPS guidance of $11.60 to $11.75.
• Neutral Sentiment: Options activity indicates heightened bullish interest. Traders purchased 34,603 call options, about 29% above average call volume, although options activity alone does not guarantee continued gains.
• Negative Sentiment: Insider selling remains a risk signal. Company insiders reported 21 open-market sales and no purchases during the past six months. Analyst targets are mixed, with a recent median target of $263, potentially limiting upside after the recent advance.

Wall Street Analyst Weigh In

JNJ has been the subject of a number of research analyst reports. Bank of America increased their price target on shares of Johnson & Johnson from $254.00 to $263.00 and gave the company a "neutral" rating in a report on Friday, July 10th. Weiss Ratings upgraded shares of Johnson & Johnson from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, July 24th. Morgan Stanley increased their target price on shares of Johnson & Johnson from $284.00 to $294.00 and gave the company an "overweight" rating in a report on Thursday, July 16th. Freedom Capital raised Johnson & Johnson from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 16th. Finally, Royal Bank Of Canada upped 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. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $268.22.

Johnson & Johnson Trading Up 3.3%

The company has a market cap of $653.20 billion, a price-to-earnings ratio of 31.41, a PEG ratio of 2.48 and a beta of 0.24. 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 business's 50-day simple moving average is $252.52 and its 200-day simple moving average is $241.60.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last released its quarterly earnings results on Wednesday, July 15th. The company reported $2.90 EPS for the quarter, beating 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 business had revenue of $25.31 billion for the quarter, compared to analyst estimates of $25.06 billion. During the same period in the prior year, the business earned $2.77 earnings per share. The company's quarterly 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. Research analysts predict that Johnson & Johnson will post 11.61 earnings per share for the current fiscal year.

Johnson & Johnson Announces Dividend

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

Insider Activity

In related news, EVP Elizabeth Forminard sold 15,918 shares of the business's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $257.00, for a total value of $4,090,926.00. Following the completion of the transaction, the executive vice president owned 16,994 shares of the company's stock, valued at approximately $4,367,458. The trade was a 48.37% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, 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 completion of the transaction, the executive vice president owned 23,003 shares in the company, valued at approximately $5,779,963.81. This trade represents a 50.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 48,972 shares of company stock worth $12,295,205 over the last three months. 0.16% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Johnson & Johnson

A number of institutional investors have recently modified their holdings of the company. Blueline Advisors LLC purchased a new position in shares of Johnson & Johnson during the 4th quarter worth $25,000. Cresta Advisors Ltd. acquired a new position in Johnson & Johnson in the fourth quarter valued at $26,000. DecisionPoint Financial LLC lifted its position in Johnson & Johnson by 104.2% during the fourth quarter. DecisionPoint Financial LLC now owns 147 shares of the company's stock worth $30,000 after buying an additional 75 shares during the period. Bay Harbor Wealth Management LLC boosted its stake in Johnson & Johnson by 49.0% in the 4th quarter. Bay Harbor Wealth Management LLC now owns 149 shares of the company's stock worth $31,000 after buying an additional 49 shares during the last quarter. Finally, Semmax Financial Advisors Inc. grew its holdings in Johnson & Johnson by 55.0% in the 2nd quarter. Semmax Financial Advisors Inc. now owns 203 shares of the company's stock valued at $31,000 after buying an additional 72 shares during the period. 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.

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.

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