Johnson & Johnson (NYSE:JNJ) Trading Down 2.5% - Here's What Happened

Key Points

• Johnson & Johnson shares fell 2.5% even after the company posted a Q2 earnings beat, suggesting investors were not impressed enough to reprice the stock higher immediately.
• The company reported adjusted EPS of $2.90 versus $2.85 expected and revenue of $25.31 billion versus $25.02 billion expected, with revenue up 6.6% year over year.
• J&J raised full-year guidance for 2026 to EPS of $11.60-$11.75 and revenue of $100.8 billion-$101.4 billion, but ongoing talc litigation risk continues to weigh on investor sentiment.

Johnson & Johnson (NYSE:JNJ - Get Free Report)'s stock price dropped 2.5% during trading on Wednesday . The stock traded as low as $246.05 and last traded at $247.5480. Approximately 10,002,910 shares traded hands during mid-day trading, an increase of 19% from the average session volume of 8,423,731 shares. The stock had previously closed at $253.85.

Johnson & Johnson News Roundup

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

• Positive Sentiment: JNJ beat Q2 expectations, posting adjusted EPS of $2.90 versus $2.85 expected and revenue of $25.31 billion versus $25.02 billion expected, showing continued strength in the core business.
• Positive Sentiment: The company raised full-year 2026 guidance, with EPS now forecast at $11.60-$11.75 and revenue at $100.8 billion-$101.4 billion, signaling management’s confidence in the outlook.
• Positive Sentiment: Pharmaceutical growth remains a key driver, especially Darzalex, Tremfya, and strong Spravato sales, which jumped 25% sequentially to $584 million and reinforce the long-term opportunity in depression treatment and related therapies. Article Title
• Neutral Sentiment: J&J also announced a quarterly dividend of $1.34 per share, which supports its appeal as a defensive income stock.
• Neutral Sentiment: Heavy call option activity suggests traders were positioning for a move around earnings, but the flow does not by itself explain the stock’s direction.
• Negative Sentiment: The stock is under pressure because the earnings beat was not viewed as dramatic enough to justify an immediate rerating, and investors may be taking profits after a strong run into the report.
• Negative Sentiment: Talc litigation and other legal risks continue to hang over the shares, limiting enthusiasm despite the improved outlook.

Analysts Set New Price Targets

JNJ has been the topic of a number of recent research reports. Guggenheim boosted their price objective on Johnson & Johnson from $266.00 to $270.00 and gave the stock a "buy" rating in a research note on Friday, June 26th. 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 report on Wednesday, April 15th. Raymond James Financial boosted their price target on shares of Johnson & Johnson from $237.00 to $258.00 and gave the company an "outperform" rating in a research report on Wednesday, April 15th. Daiwa Securities Group upped their price objective on shares of Johnson & Johnson from $237.00 to $246.00 and gave the company an "outperform" rating in a report on Thursday, April 16th. Finally, HSBC set a $290.00 target price on shares of Johnson & Johnson and gave the stock a "buy" rating in a research note on Monday, July 6th. Twenty research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, Johnson & Johnson currently has an average rating of "Moderate Buy" and an average price target of $261.26.

Johnson & Johnson Trading Down 2.5%

The firm has a market capitalization of $595.90 billion, a PE ratio of 28.62, a PEG ratio of 2.46 and a beta of 0.24. The company has a current ratio of 1.03, a quick ratio of 0.77 and a debt-to-equity ratio of 0.46. The business has a fifty day moving average price of $238.18 and a two-hundred day moving average price of $233.92.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last issued its quarterly earnings data on Wednesday, July 15th. The company reported $2.90 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.85 by $0.05. Johnson & Johnson had a return on equity of 32.60% and a net margin of 21.83%.The firm had revenue of $25.31 billion during the quarter, compared to the consensus estimate of $25.02 billion. During the same period last year, the company earned $2.77 EPS. 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. Analysts expect that Johnson & Johnson will post 11.58 EPS for the current fiscal year.

Insider Buying and Selling at Johnson & Johnson

In other news, EVP Kathryn E. Wengel sold 10,000 shares of the business'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 sale, the executive vice president directly owned 114,288 shares of the company's stock, valued at approximately $27,560,551.20. The trade was a 8.05% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.16% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Johnson & Johnson

A number of hedge funds have recently made changes to their positions in JNJ. Ballast Inc. raised its position in Johnson & Johnson by 9.0% in the second quarter. Ballast Inc. now owns 25,218 shares of the company's stock valued at $6,405,000 after purchasing an additional 2,088 shares during the period. Regent Peak Wealth Advisors LLC lifted its stake in Johnson & Johnson by 4.1% during the second quarter. Regent Peak Wealth Advisors LLC now owns 6,475 shares of the company's stock worth $1,644,000 after purchasing an additional 253 shares in the last quarter. Insight Wealth Strategies LLC purchased a new position in shares of Johnson & Johnson during the second quarter worth $216,000. Hudson Value Partners LLC grew its stake in shares of Johnson & Johnson by 8.5% in the second quarter. Hudson Value Partners LLC now owns 38,698 shares of the company's stock valued at $9,828,000 after buying an additional 3,045 shares in the last quarter. Finally, Adirondack Capital Advisors LLC purchased a new stake in shares of Johnson & Johnson in the 2nd quarter valued at $281,000. Hedge funds and other institutional investors 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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