Morgan Stanley Forecasts Strong Price Appreciation for Johnson & Johnson (NYSE:JNJ) Stock

Key Points

• Morgan Stanley has raised its target price for Johnson & Johnson (NYSE:JNJ) stock from $176.00 to $178.00, maintaining an "equal weight" rating, suggesting a potential downside of 6.90% from its current price.
• Consensus ratings for Johnson & Johnson show a moderate buy, with 2 analysts issuing a strong buy and 12 a buy, while the average price target across analysts is $192.94.
• Recent insider transactions include EVP Jennifer L. Taubert selling 56,471 shares valued at over $10 million, resulting in a 24.08% decrease in her ownership of the stock.

Johnson & Johnson (NYSE:JNJ - Get Free Report) had its target price boosted by equities research analysts at Morgan Stanley from $176.00 to $178.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Morgan Stanley's price target would suggest a potential downside of 6.90% from the stock's current price.

A number of other research analysts have also recently issued reports on the stock. UBS Group set a $198.00 price target on shares of Johnson & Johnson in a report on Friday, October 3rd. Erste Group Bank upgraded shares of Johnson & Johnson from a "hold" rating to a "buy" rating in a research report on Wednesday, July 23rd. HSBC lifted their target price on shares of Johnson & Johnson from $188.00 to $210.00 in a research report on Tuesday, September 30th. Sanford C. Bernstein boosted their price target on shares of Johnson & Johnson from $172.00 to $193.00 and gave the stock a "market perform" rating in a research report on Monday. Finally, Weiss Ratings raised shares of Johnson & Johnson from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday. Two investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $192.94.

Johnson & Johnson Stock Performance

Shares of Johnson & Johnson stock traded up $0.12 on Friday, hitting $191.20. 4,495,748 shares of the company's stock were exchanged, compared to its average volume of 8,888,304. The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.76 and a current ratio of 1.01. Johnson & Johnson has a 1 year low of $140.68 and a 1 year high of $192.10. The company has a 50-day simple moving average of $178.01 and a 200-day simple moving average of $163.56. The stock has a market capitalization of $460.47 billion, a PE ratio of 20.42, a PEG ratio of 2.42 and a beta of 0.40.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last posted its earnings results on Wednesday, August 30th. The company reported $2.26 earnings per share for the quarter. Johnson & Johnson had a net margin of 25.00% and a return on equity of 32.49%. The firm had revenue of $24.02 billion for the quarter. As a group, equities analysts anticipate that Johnson & Johnson will post 10.58 EPS for the current year.

Insiders Place Their Bets

In other Johnson & Johnson news, EVP Jennifer L. Taubert sold 56,471 shares of the firm's stock in a transaction dated 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 sale, the executive vice president directly owned 178,013 shares of the company's stock, valued at $31,652,491.53. This trade represents a 24.08% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.16% of the company's stock.

Institutional Investors Weigh In On Johnson & Johnson

Hedge funds have recently modified their holdings of the company. Evolution Wealth Management Inc. acquired a new stake in shares of Johnson & Johnson in the second quarter worth approximately $27,000. Semmax Financial Advisors Inc. raised its holdings in Johnson & Johnson by 55.0% in the second 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. GFG Capital LLC purchased a new position in Johnson & Johnson in the second quarter valued at approximately $35,000. Highline Wealth Partners LLC raised its stake in shares of Johnson & Johnson by 51.8% during the first quarter. Highline Wealth Partners LLC now owns 252 shares of the company's stock valued at $42,000 after purchasing an additional 86 shares during the period. Finally, Stone House Investment Management LLC purchased a new stake in shares of Johnson & Johnson during the first quarter valued at approximately $47,000. 69.55% of the stock is owned by institutional investors and hedge funds.

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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