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

Key Points

• Johnson & Johnson shares rose 1% on Thursday, trading as high as $231.89, although volume was below average.
• The company got a boost from several positives, including China approval for its autoimmune drug nipocalimab, progress on a next-generation coronary IVL catheter, and a collaboration on a global intelligent operating room network.
• Wall Street remains constructive on JNJ: analysts have a Moderate Buy rating overall with an average target price of $253.04, and the company recently raised its quarterly dividend to $1.34 per share.

Johnson & Johnson (NYSE:JNJ - Get Free Report) shares were up 1% on Thursday . The stock traded as high as $231.89 and last traded at $231.6910. Approximately 5,196,212 shares traded hands during trading, a decline of 38% from the average daily volume of 8,438,648 shares. The stock had previously closed at $229.32.

Trending Headlines about Johnson & Johnson

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

• Positive Sentiment: Johnson & Johnson said its autoimmune drug nipocalimab was approved in China, expanding access to a potential new growth driver in a major market. Johnson & Johnson says nipocalimab approved in China
• Positive Sentiment: The company also highlighted its next-generation Shockwave C2 Aero Coronary IVL catheter, supporting expectations for continued MedTech innovation and sales growth in cardiovascular care. Johnson & Johnson (JNJ) Unveils Next‑Gen Catheter for Coronary Artery Disease
• Positive Sentiment: Johnson & Johnson announced a collaboration with Abu Dhabi health regulators to build a global intelligent operating room network, a move that could strengthen its digital surgery strategy and long-term positioning. Johnson & Johnson Advances Creation of Global Intelligent OR Network in collaboration with Department of Health - Abu Dhabi
• Neutral Sentiment: Several articles this week simply reiterated Johnson & Johnson’s status as a top dividend and defensive healthcare name, which supports investor sentiment but does not represent a new catalyst. Top Stock Reports for Johnson & Johnson, Oracle & Netflix

Wall Street Analysts Forecast Growth

JNJ has been the subject of several analyst reports. Raymond James Financial upped their price objective on Johnson & Johnson from $237.00 to $258.00 and gave the company an "outperform" rating in a research note on Wednesday, April 15th. Bank of America boosted their target price on Johnson & Johnson from $253.00 to $254.00 and gave the company a "neutral" rating in a report on Wednesday, April 15th. HSBC boosted their target price on Johnson & Johnson from $265.00 to $280.00 and gave the company a "buy" rating in a report on Tuesday, March 17th. Stifel Nicolaus lifted their price objective on shares of Johnson & Johnson from $220.00 to $250.00 and gave the company a "hold" rating in a research report on Wednesday, April 15th. Finally, Johnson Rice upgraded shares of Johnson & Johnson from a "hold" rating to an "outperform" rating in a research report on Wednesday, May 13th. Twenty research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat, Johnson & Johnson has an average rating of "Moderate Buy" and an average target price of $253.04.

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 has a 50-day simple moving average of $234.43 and a 200-day simple moving average of $222.90. The company has a market cap of $557.73 billion, a price-to-earnings ratio of 26.79, a PEG ratio of 2.25 and a beta of 0.27.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last posted its quarterly earnings results on Tuesday, April 14th. The company reported $2.70 earnings per share for the quarter, beating 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%.The firm had revenue of $24.06 billion for the quarter, compared to the consensus estimate of $23.60 billion. During the same period in the previous year, the business earned $2.77 earnings per share. The company's revenue for the quarter 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. As a group, research analysts predict that Johnson & Johnson will post 11.57 earnings per share for the current year.

Johnson & Johnson Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 9th. Stockholders of record on Tuesday, May 26th will be issued a $1.34 dividend. The ex-dividend date is Tuesday, May 26th. This represents a $5.36 dividend on an annualized basis and a dividend yield of 2.3%. This is a boost from Johnson & Johnson's previous quarterly dividend of $1.30. Johnson & Johnson's payout ratio is 60.12%.

Insider Activity

In other news, EVP Timothy Schmid sold 1,322 shares of the stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $245.66, for a total value of $324,762.52. Following the completion of the transaction, the executive vice president owned 25,447 shares in the company, valued at $6,251,310.02. This trade represents a 4.94% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.16% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. AustralianSuper Pty Ltd grew its position in shares of Johnson & Johnson by 632.0% in the 3rd quarter. AustralianSuper Pty Ltd now owns 89,183 shares of the company's stock valued at $16,536,000 after purchasing an additional 77,000 shares during the period. J.W. Cole Advisors Inc. lifted its stake in Johnson & Johnson by 2.2% in the third quarter. J.W. Cole Advisors Inc. now owns 130,934 shares of the company's stock valued at $24,278,000 after buying an additional 2,769 shares in the last quarter. Guinness Asset Management LTD lifted its stake in Johnson & Johnson by 0.4% in the third quarter. Guinness Asset Management LTD now owns 1,383,195 shares of the company's stock valued at $251,216,000 after buying an additional 5,994 shares in the last quarter. Greenberg Financial Group bought a new position in Johnson & Johnson in the fourth quarter valued at approximately $954,000. Finally, National Pension Service lifted its stake in Johnson & Johnson by 3.2% in the third quarter. National Pension Service now owns 4,926,569 shares of the company's stock valued at $913,484,000 after buying an additional 151,707 shares in the last quarter. 69.55% of the stock is currently owned by institutional investors and hedge funds.

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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