Johnson & Johnson (NYSE:JNJ) Shares Climb 2.2% - Here's What Happened

Key Points

• Johnson & Johnson shares rose 2.2% to about $259.42, supported by the U.S. launch of its next-generation Shockwave coronary catheter and positive Phase 3 data for TREMFYA in Crohn’s disease.
• Recent quarterly results narrowly exceeded expectations, with EPS of $2.59 and revenue of $25.40 billion; fiscal 2026 EPS guidance is $11.05–$11.15. Analysts maintain a “Moderate Buy” consensus and an average price target of $275.92.
• Valuation remains a concern: JNJ trades at roughly 39 times earnings, while one firm downgraded the stock to Sell. The company declared a quarterly dividend of $1.34 per share, equivalent to a 2.1% annual yield.

Johnson & Johnson (NYSE:JNJ - Get Free Report) shares rose 2.2% during trading on Tuesday. The stock traded as high as $260.77 and last traded at $259.4190. 7,633,228 shares traded hands during mid-day trading, a decline of 5% from the average session volume of 7,994,566 shares. The stock had previously closed at $253.79.

Key Headlines Impacting Johnson & Johnson

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

• Positive Sentiment: Johnson & Johnson launched the next-generation Shockwave C2 Aero Fly coronary intravascular lithotripsy catheter in the U.S. The device delivers pulses at 2 Hz and is designed to cut treatment time for calcified coronary lesions roughly in half, potentially improving hospital efficiency and supporting MedTech growth. Johnson & Johnson Launches Next-Generation Shockwave C2 Aero Fly Coronary IVL Catheter
• Positive Sentiment: New Phase 3 FUZION data showed TREMFYA maintained or improved fistula remission through 48 weeks in Crohn’s disease, including remission rising to 35% from 28% at Week 24 for one dosing group. The results strengthen the case for expanding TREMFYA’s commercial opportunity beyond its established indications. Johnson & Johnson TREMFYA Crohn’s Disease Data
• Positive Sentiment: TD Cowen reiterated a Buy rating and kept its $300 price target, citing underappreciated pharmaceutical and MedTech growth prospects. TD Cowen Reiterates Buy Rating
• Neutral Sentiment: Johnson & Johnson’s quarterly EPS and revenue edged above consensus, while fiscal 2026 EPS guidance was set at $11.05-$11.15. However, the limited magnitude of the beat indicates that stronger execution may be needed to sustain the stock’s premium earnings multiple.
• Negative Sentiment: JLPascual downgraded JNJ to Sell, adding pressure to a valuation debate: the stock trades at a substantial earnings premium to the broader market, while competition and development spending could limit the returns from its medical-device acquisitions. Johnson & Johnson Downgraded to Sell

Wall Street Analyst Weigh In

JNJ has been the topic of a number of recent research reports. Johnson Rice reissued a "buy" rating on shares of Johnson & Johnson in a report on Monday, August 3rd. JPMorgan Chase & Co. lifted their target price on Johnson & Johnson from $270.00 to $285.00 and gave the company a "neutral" rating in a report on Tuesday, September 29th. Sanford C. Bernstein set a $270.00 price target on Johnson & Johnson in a research report on Thursday, October 15th. TD Cowen reissued a "buy" rating on shares of Johnson & Johnson in a report on Tuesday. Finally, Weiss Ratings upgraded shares of Johnson & Johnson from a "buy (b)" rating to a "buy (b+)" rating in a research report on Thursday, October 8th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $275.92.

Johnson & Johnson Trading Up 2.2%

The stock has a market cap of $625.17 billion, a PE ratio of 39.31, a PEG ratio of 2.53 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. The firm has a fifty day simple moving average of $265.52 and a two-hundred day simple moving average of $249.73.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last issued its quarterly earnings data on Tuesday, October 13th. The company reported $2.59 EPS for the quarter, topping the consensus estimate of $2.53 by $0.06. Johnson & Johnson had a return on equity of 31.54% and a net margin of 16.20%. The company had revenue of $25.40 billion during the quarter, compared to analyst estimates of $25.38 billion. During the same quarter in the previous year, the firm earned $2.80 earnings per share. Johnson & Johnson's revenue was up 5.9% on a year-over-year basis. Johnson & Johnson has set its FY 2026 guidance at 11.050-11.150 EPS. As a group, equities analysts expect that Johnson & Johnson will post 11.12 earnings per share for the current fiscal year.

Johnson & Johnson Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 8th. Stockholders of record on Tuesday, November 24th will be given a dividend of $1.34 per share. The ex-dividend date is Tuesday, November 24th. This represents a $5.36 annualized dividend and a dividend yield of 2.1%. Johnson & Johnson's dividend payout ratio (DPR) is 81.21%.

Insider Transactions at Johnson & Johnson

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

Hedge Funds Weigh In On Johnson & Johnson

Large investors have recently modified their holdings of the company. Silver Coast Investments LLC boosted its holdings in shares of Johnson & Johnson by 3.8% during the 2nd quarter. Silver Coast Investments LLC now owns 1,066 shares of the company's stock valued at $271,000 after acquiring an additional 39 shares during the last quarter. Townsend Asset Management Corp NC ADV raised its holdings in shares of Johnson & Johnson by 0.6% during the second quarter. Townsend Asset Management Corp NC ADV now owns 6,418 shares of the company's stock valued at $1,630,000 after purchasing an additional 39 shares during the last quarter. Triumph Capital Management lifted its position in Johnson & Johnson by 1.6% during the second quarter. Triumph Capital Management now owns 2,531 shares of the company's stock valued at $643,000 after purchasing an additional 39 shares during the period. Kwmg LLC boosted its holdings in Johnson & Johnson by 1.7% in the third quarter. Kwmg LLC now owns 2,383 shares of the company's stock worth $631,000 after purchasing an additional 39 shares during the last quarter. Finally, Denali Advisors LLC grew its position in Johnson & Johnson by 1.2% in the 2nd quarter. Denali Advisors LLC now owns 3,305 shares of the company's stock worth $839,000 after purchasing an additional 40 shares during the period. 69.55% of the stock is owned by hedge funds and other institutional investors.

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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