Johnson & Johnson (NYSE:JNJ) Reaches New 12-Month High - Still a Buy?

Key Points

• Johnson & Johnson shares reached a new 52-week high of $282.02 and recently traded near $278, supported by strong quarterly results. The company beat EPS and revenue estimates, reported 5.9% year-over-year revenue growth, and maintained 2026 EPS guidance of $11.05–$11.15.
• Newer medicines, including Icotyde, are helping offset declining Stelara sales, while positive clinical data for Impella heart pumps strengthens the MedTech business. Institutional investors have also increased their holdings, though insiders sold shares worth about $17.3 million over the past 90 days.
• Valuation and future earnings pressure remain key risks. JNJ trades at roughly 42 times earnings with a 1.9% dividend yield, and analysts have a “Moderate Buy” consensus with a $275.92 price target—near the current share price—while Stelara’s decline, 2027 earnings uncertainty, and a law-firm investigation add caution.

Johnson & Johnson (NYSE:JNJ - Get Free Report) shares hit a new 52-week high on Friday. The company traded as high as $282.02 and last traded at $277.97, with a volume of 725,450 shares. The stock had previously closed at $275.20.

Trending Headlines about Johnson & Johnson

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

• Positive Sentiment: New drug growth is supporting results. J&J’s newer medicines have helped offset declining sales of Stelara, while the company’s latest quarterly report exceeded analysts’ EPS and revenue expectations. The company maintained 2026 EPS guidance of $11.05–$11.15. Johnson & Johnson: Strong Q3 Growth, But 2027 Could Test Its Earnings
• Positive Sentiment: Icotyde is gaining traction in plaque psoriasis. Independent physician research indicates that J&J’s oral therapy is being adopted quickly, gaining share in the oral advanced-therapy market and potentially delaying more expensive biologic treatment. This could expand the drug’s commercial opportunity if adoption continues. Does Johnson & Johnson Have a New Edge in Plaque Psoriasis?
• Positive Sentiment: Medical-device data adds support for the MedTech business. J&J presented 26 abstracts at TCT 2026 highlighting more than two decades of safety, efficacy and cost-effectiveness data for its Impella heart pumps. The disclosures reinforce the product line’s clinical evidence and commercial positioning. Johnson & Johnson Record 26 Abstracts at TCT 2026
• Neutral Sentiment: Analysts remain broadly constructive, but the stock’s valuation raises the bar. Commentary asks whether much of the recovery story is already reflected in JNJ’s price after its strong one-year advance. With a forward-looking growth profile and elevated price-to-earnings valuation, further gains may depend on sustained execution. Has the Story Under Johnson & Johnson Stock Run Out?
• Negative Sentiment: 2027 earnings could face greater pressure. Stelara’s decline and the need for newer products to replace lost revenue remain key risks, particularly as investors assess whether current growth can justify JNJ’s premium valuation.
• Negative Sentiment: A law firm investigation adds headline risk. Pomerantz announced an investigation into potential claims on behalf of JNJ investors. The announcement is an allegation and solicitation, not a finding of wrongdoing, but it could renew legal concerns surrounding the company. Pomerantz Investor Alert Regarding Johnson & Johnson

Analyst Ratings Changes

Several research analysts have commented on the stock. Leerink Partners decreased their target price on shares of Johnson & Johnson from $276.00 to $272.00 and set an "outperform" rating for the company in a report on Wednesday, October 14th. Sanford C. Bernstein set a $270.00 price target on shares of Johnson & Johnson in a report on Thursday, October 15th. Morgan Stanley cut their price target on shares of Johnson & Johnson from $294.00 to $292.00 and set an "overweight" rating on the stock in a report on Thursday, October 15th. TD Cowen reaffirmed a "buy" rating on shares of Johnson & Johnson in a research note on Tuesday, October 20th. Finally, Bank of America reaffirmed a "neutral" rating and issued a $278.00 price objective on shares of Johnson & Johnson in a research note on Tuesday, September 29th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat.com, Johnson & Johnson has a consensus rating of "Moderate Buy" and a consensus price target of $275.92.

Johnson & Johnson Stock Up 0.8%

The company has a current ratio of 1.02, a quick ratio of 0.74 and a debt-to-equity ratio of 0.44. The business's fifty day moving average price is $265.64 and its two-hundred day moving average price is $246.62. The firm has a market cap of $667.50 billion, a P/E ratio of 41.94, a P/E/G ratio of 2.68 and a beta of 0.21.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last released its quarterly earnings results on Tuesday, October 13th. The company reported $2.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.53 by $0.06. The company had revenue of $25.40 billion during the quarter, compared to the consensus estimate of $25.38 billion. Johnson & Johnson had a return on equity of 31.64% and a net margin of 16.20%. The firm's revenue was up 5.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.80 EPS. Johnson & Johnson has set its FY 2026 guidance at 11.050-11.150 EPS. As a group, equities research analysts anticipate that Johnson & Johnson will post 11.12 EPS for the current year.

Johnson & Johnson Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 8th. Shareholders of record on Tuesday, November 24th will be given a dividend of $1.34 per share. The ex-dividend date of this dividend is Tuesday, November 24th. This represents a $5.36 dividend on an annualized basis and a yield of 1.9%. Johnson & Johnson's payout ratio is currently 81.21%.

Insider Buying and Selling at Johnson & Johnson

In other Johnson & Johnson news, EVP Jennifer Taubert sold 15,000 shares of the company's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $263.36, for a total transaction of $3,950,400.00. Following the completion of the sale, the executive vice president directly owned 194,451 shares in the company, valued at $51,210,615.36. This represents a 7.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Timothy Schmid sold 33,597 shares of the firm's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $274.74, for a total value of $9,230,439.78. Following the completion of the sale, the executive vice president directly owned 25,447 shares in the company, valued at approximately $6,991,308.78. This represents a 56.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 64,515 shares of company stock worth $17,271,766 over the last ninety days. Company insiders own 0.16% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of JNJ. Jupiter Topco LLC bought a new stake in Johnson & Johnson in the second quarter valued at approximately $1,967,399,000. Corient Private Wealth LP boosted its position in shares of Johnson & Johnson by 127.3% during the second quarter. Corient Private Wealth LP now owns 6,060,922 shares of the company's stock worth $1,539,292,000 after purchasing an additional 3,393,981 shares in the last quarter. Wellington Management Group LLP boosted its position in shares of Johnson & Johnson by 12.5% during the second quarter. Wellington Management Group LLP now owns 22,588,696 shares of the company's stock worth $5,736,851,000 after purchasing an additional 2,513,321 shares in the last quarter. Amundi boosted its position in shares of Johnson & Johnson by 17.5% during the first quarter. Amundi now owns 13,406,820 shares of the company's stock worth $3,277,163,000 after purchasing an additional 2,001,139 shares in the last quarter. Finally, SEB Asset Management AB acquired a new position in shares of Johnson & Johnson in the 1st quarter valued at $314,468,000. 69.55% of the stock is currently owned by institutional investors and hedge funds.

About Johnson & Johnson

Johnson & Johnson NYSE: JNJ is a global healthcare company headquartered in New Brunswick, New Jersey. Founded in 1886, the company develops and markets products and services for patients, healthcare professionals and institutions worldwide.

Johnson & Johnson operates through two principal segments: Innovative Medicine and MedTech. Innovative Medicine focuses on pharmaceuticals for areas such as immunology, oncology, neuroscience, infectious diseases and cardiovascular conditions.

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