Johnson & Johnson (NYSE:JNJ) Trading Up 1% - Here's Why

Key Points

• Shares of Johnson & Johnson saw a 1% increase in trading, reaching a high of $177.16, with a trading volume that was 186% higher than the average.
• Recent analyst ratings have been predominantly positive, with upgrades from multiple firms including a raise in the price target by UBS Group from $180.00 to $190.00.
• The company reported earnings of $2.77 per share for its last quarter, exceeding analyst expectations and showcasing a revenue increase of 5.8% year-over-year.

Shares of Johnson & Johnson (NYSE:JNJ - Get Free Report) were up 1% during trading on Friday . The stock traded as high as $177.16 and last traded at $175.97. Approximately 25,535,901 shares changed hands during trading, an increase of 186% from the average daily volume of 8,940,144 shares. The stock had previously closed at $174.16.

Analyst Upgrades and Downgrades

Several analysts recently commented on JNJ shares. Wall Street Zen upgraded shares of Johnson & Johnson from a "hold" rating to a "buy" rating in a report on Saturday, September 13th. UBS Group raised their price target on shares of Johnson & Johnson from $180.00 to $190.00 and gave the stock a "buy" rating in a report on Thursday, July 17th. Guggenheim reiterated a "neutral" rating and issued a $167.00 target price (up from $164.00) on shares of Johnson & Johnson in a research note on Thursday, July 17th. Bank of America lifted their target price on shares of Johnson & Johnson from $161.00 to $175.00 and gave the company a "neutral" rating in a research note on Thursday, July 17th. Finally, Erste Group Bank upgraded shares of Johnson & Johnson from a "hold" rating to a "buy" rating in a research note on Wednesday, July 23rd. Two research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and ten have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $177.87.

Johnson & Johnson Price Performance

The stock's 50 day moving average price is $172.42 and its two-hundred day moving average price is $161.62. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.01 and a quick ratio of 0.76. The firm has a market capitalization of $423.80 billion, a price-to-earnings ratio of 18.82, a PEG ratio of 2.26 and a beta of 0.40.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last issued its quarterly earnings data on Wednesday, July 16th. The company reported $2.77 earnings per share for the quarter, topping analysts' consensus estimates of $2.68 by $0.09. Johnson & Johnson had a net margin of 25.00% and a return on equity of 32.49%. The business had revenue of $23.74 billion during the quarter, compared to analysts' expectations of $22.85 billion. During the same period in the previous year, the company earned $2.82 earnings per share. Johnson & Johnson's revenue for the quarter was up 5.8% on a year-over-year basis. Johnson & Johnson has set its FY 2025 guidance at 10.800-10.900 EPS. On average, equities research analysts anticipate that Johnson & Johnson will post 10.58 EPS for the current year.

Johnson & Johnson Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 9th. Stockholders of record on Tuesday, August 26th were paid a $1.30 dividend. This represents a $5.20 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date was Tuesday, August 26th. Johnson & Johnson's payout ratio is presently 55.61%.

Insider Transactions at Johnson & Johnson

In related news, EVP Jennifer L. Taubert sold 56,471 shares of the business's stock in a transaction on Thursday, September 4th. The shares were sold at an average price of $177.81, for a total transaction of $10,041,108.51. Following the transaction, the executive vice president owned 178,013 shares of the company's stock, valued at approximately $31,652,491.53. The trade was a 24.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Company insiders own 0.16% of the company's stock.

Hedge Funds Weigh In On Johnson & Johnson

A number of institutional investors and hedge funds have recently bought and sold shares of JNJ. Brighton Jones LLC increased its position in Johnson & Johnson by 13.9% during the fourth quarter. Brighton Jones LLC now owns 51,876 shares of the company's stock worth $7,502,000 after acquiring an additional 6,332 shares during the period. Hudson Value Partners LLC increased its holdings in Johnson & Johnson by 2.5% in the 4th quarter. Hudson Value Partners LLC now owns 41,403 shares of the company's stock valued at $5,648,000 after buying an additional 1,022 shares during the period. Two Sigma Investments LP bought a new stake in Johnson & Johnson in the 4th quarter valued at $9,222,000. First Heartland Consultants Inc. bought a new stake in Johnson & Johnson in the 4th quarter valued at $1,269,000. Finally, 49 Wealth Management LLC bought a new stake in Johnson & Johnson in the 4th quarter valued at $211,000. Institutional investors own 69.55% of the company's stock.

Johnson & Johnson Company Profile

Johnson & Johnson is a holding company, which engages in the research, development, manufacture, and sale of products in the healthcare field. It operates through the Innovative Medicine and MedTech segments. The Innovative Medicine segment focuses on immunology, infectious diseases, neuroscience, oncology, cardiovascular and metabolism, and pulmonary hypertension.

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