Johnson & Johnson (NYSE:JNJ) Shares Climb 1.9% - What's Next?

Key Points

• Johnson & Johnson shares rose 1.9% to about $261.27, though trading volume was 31% below the average session volume.
• Positive sentiment is supported by strong two-year psoriasis results for ICOTYDE, favorable Buy ratings, and recent earnings that exceeded expectations with 6.6% year-over-year revenue growth.
• Key risks include upcoming patent expirations, Stelara biosimilar competition, MedTech execution issues, and a patent lawsuit involving subsidiary Atraverse; investors are also awaiting third-quarter earnings.

Johnson & Johnson (NYSE:JNJ - Get Free Report) was up 1.9% on Friday. The company traded as high as $261.61 and last traded at $261.2720. Approximately 5,459,241 shares traded hands during trading, a decline of 31% from the average session volume of 7,959,499 shares. The stock had previously closed at $256.48.

More Johnson & Johnson News

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

• Positive Sentiment: Johnson & Johnson reported durable two-year results for ICOTYDE (icotrokinra) in moderate-to-severe plaque psoriasis. Nearly three-quarters of adults and adolescents achieved clear or almost clear skin, while the treatment continued to show a favorable safety profile. The data strengthen the commercial case for a potential growth product in J&J’s immunology portfolio. ICOTYDE two-year psoriasis results
• Positive Sentiment: Guggenheim reaffirmed a Buy rating, while Morgan Stanley also issued a Buy rating. The endorsements add support to the bullish view that J&J’s drug launches, pipeline investments and dealmaking can offset longer-term losses from aging products. Guggenheim Buy rating
• Positive Sentiment: J&J continues to attract income-focused investors because of its long record of dividend growth and comparatively strong payout support. Recent analysis contrasts its lower yield with Pfizer’s higher but potentially less reliable payout, reinforcing J&J’s defensive appeal. J&J dividend comparison
• Neutral Sentiment: Investors are positioning for third-quarter earnings. J&J enters the report with strong pharmaceutical sales and new launches, while its previous quarter included revenue growth of 6.6% and adjusted EPS above consensus. Analysts are also debating whether the stock’s elevated valuation already reflects much of the expected growth. J&J Q3 earnings outlook
• Negative Sentiment: Boston Scientific has sued J&J subsidiary Atraverse, seeking an injunction and damages over alleged patent infringement involving the Hotwire cardiology device. The dispute could create legal costs or restrict commercialization if the claims succeed. Atraverse patent lawsuit
• Negative Sentiment: J&J faces a broader pharmaceutical patent overhang, including upcoming expirations for Imbruvica and Darzalex, while Stelara biosimilar competition could pressure growth. MedTech execution challenges add another source of uncertainty. J&J patent cliff analysis

Analyst Upgrades and Downgrades

Several equities analysts have commented on JNJ shares. Freedom Capital raised shares of Johnson & Johnson from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 16th. HSBC raised their price objective on shares of Johnson & Johnson from $290.00 to $320.00 and gave the company a "buy" rating in a research note on Thursday, September 10th. Raymond James Financial set a $280.00 target price on Johnson & Johnson in a research report on Monday, August 3rd. Wall Street Zen cut Johnson & Johnson from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Finally, TD Cowen upped their price target on shares of Johnson & Johnson from $250.00 to $300.00 and gave the company a "buy" rating in a report on Monday, July 13th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $276.22.

Johnson & Johnson Price Performance

The stock has a 50-day simple moving average of $265.73 and a 200 day simple moving average of $248.93. The stock has a market capitalization of $629.64 billion, a price-to-earnings ratio of 30.27, a price-to-earnings-growth ratio of 2.59 and a beta of 0.21. The company has a current ratio of 1.09, a quick ratio of 0.81 and a debt-to-equity ratio of 0.44.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last released its quarterly earnings data on Wednesday, July 15th. The company reported $2.90 earnings per share for the quarter, beating the consensus estimate of $2.84 by $0.06. Johnson & Johnson had a net margin of 21.48% and a return on equity of 32.42%. The firm had revenue of $25.31 billion for the quarter, compared to analyst estimates of $25.06 billion. During the same quarter in the prior year, the business earned $2.77 EPS. The company's revenue for the quarter was up 6.6% compared to the same quarter last year. Johnson & Johnson has set its FY 2026 guidance at 11.600-11.750 EPS. On average, equities research analysts forecast that Johnson & Johnson will post 11.3 EPS for the current fiscal year.

Johnson & Johnson Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 8th. Stockholders of record on Tuesday, August 25th were issued a dividend of $1.34 per share. This represents a $5.36 annualized dividend and a dividend yield of 2.1%. The ex-dividend date was Tuesday, August 25th. Johnson & Johnson's payout ratio is currently 62.11%.

Insider Transactions at Johnson & Johnson

In related news, EVP Vanessa Broadhurst sold 23,054 shares of the stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $251.27, for a total value of $5,792,778.58. Following the transaction, the executive vice president owned 23,003 shares in the company, valued at approximately $5,779,963.81. This represents a 50.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Elizabeth Forminard sold 15,918 shares of the firm's stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $257.00, for a total transaction of $4,090,926.00. Following the transaction, the executive vice president directly owned 16,994 shares in the company, valued at approximately $4,367,458. The trade was a 48.37% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 87,569 shares of company stock worth $23,064,544. 0.16% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Johnson & Johnson

Several hedge funds have recently bought and sold shares of the business. National Pension Service lifted its holdings in shares of Johnson & Johnson by 1.3% during the second quarter. National Pension Service now owns 5,226,968 shares of the company's stock worth $1,327,493,000 after purchasing an additional 67,484 shares during the period. IFP Advisors Inc increased its holdings in Johnson & Johnson by 8.8% in the second quarter. IFP Advisors Inc now owns 38,760 shares of the company's stock valued at $9,844,000 after purchasing an additional 3,133 shares during the period. Elefante Mark B raised its position in Johnson & Johnson by 9.8% during the 2nd quarter. Elefante Mark B now owns 28,686 shares of the company's stock worth $7,285,000 after purchasing an additional 2,563 shares during the last quarter. Signal Advisors Wealth LLC lifted its holdings in Johnson & Johnson by 76.1% during the 1st quarter. Signal Advisors Wealth LLC now owns 15,126 shares of the company's stock worth $3,697,000 after buying an additional 6,539 shares during the period. Finally, Gradient Investments LLC grew its position in shares of Johnson & Johnson by 9.9% in the 2nd quarter. Gradient Investments LLC now owns 152,831 shares of the company's stock valued at $38,815,000 after buying an additional 13,737 shares during the last quarter. 69.55% of the stock is owned by institutional investors and hedge funds.

About Johnson & Johnson

Johnson & Johnson NYSE: JNJ is a global healthcare company that develops, manufactures and markets products through two primary business segments: Innovative Medicine and MedTech. Its operations serve patients, healthcare professionals and consumers in markets around the world.

The Innovative Medicine segment focuses on prescription medicines in areas including immunology, oncology, neuroscience, cardiovascular and metabolic disease, infectious diseases, and pulmonary hypertension.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.