Johnson & Johnson (NYSE:JNJ) Shares Up 3.8% - Still a Buy?

Key Points

• Johnson & Johnson shares rose 3.8% to about $267.67 amid demand for defensive healthcare stocks. The move came with trading volume roughly 21% above average.
• Pharmaceutical sales are supporting growth, prompting JNJ to raise its 2026 revenue outlook to approximately $101.2 billion and slightly increase adjusted EPS guidance. New data for its VARIPULSE Pro and OMNYPULSE platforms also bolsters the MedTech business.
• Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and an average price target of $275.92, but valuation concerns remain: the stock trades at about 40.6 times earnings, and Erste Group downgraded it to “hold.”

Johnson & Johnson (NYSE:JNJ - Get Free Report)'s share price shot up 3.8% on Thursday. The stock traded as high as $269.67 and last traded at $267.6680. Approximately 9,712,091 shares were traded during mid-day trading, an increase of 21% from the average daily volume of 8,006,106 shares. The stock had previously closed at $257.78.

Key Johnson & Johnson News

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

• Positive Sentiment: Investor demand for defensive large-cap healthcare stocks is supporting JNJ as broader large-cap shares weaken. The company is benefiting from the same defensive rotation that lifted Procter & Gamble and other stable, cash-generating businesses. Defensive stocks article
• Positive Sentiment: JNJ’s pharmaceutical business is emerging as an important growth driver. Strong drug sales helped the company raise its 2026 outlook to approximately $101.2 billion in sales at the midpoint and slightly increase adjusted EPS guidance, reinforcing confidence in its earnings trajectory. Johnson & Johnson guidance article
• Positive Sentiment: New real-world data for the VARIPULSE Pro platform and 12-month outcomes from the OMNYPULSE platform provide additional support for JNJ’s electrophysiology and atrial-fibrillation treatment portfolio, potentially strengthening its medical-device growth story. VARIPULSE and OMNYPULSE data
• Neutral Sentiment: The company’s 64-year record of annual dividend increases remains attractive to income-focused investors, although its recent total returns have lagged the S&P 500 and rising Treasury yields make dividend stocks less compelling for some investors. JNJ dividend history
• Negative Sentiment: Erste Group Bank downgraded JNJ from “buy” to “hold,” reflecting possible caution over the stock’s premium valuation and the need for continued pharmaceutical growth. Erste Group downgrade
• Negative Sentiment: Recent coverage highlights uneven performance: pharmaceuticals advanced, while another business reportedly stalled. A sharp year-over-year decline in reported profit—though distorted by unusual factors—could also create headline volatility and raise questions about whether JNJ’s premium earnings multiple is justified. JNJ growth story article

Analyst Upgrades and Downgrades

Several research firms recently issued reports on JNJ. Evercore set a $300.00 price objective on shares of Johnson & Johnson in a report on Tuesday. Morgan Stanley decreased their price objective on Johnson & Johnson from $294.00 to $292.00 and set an "overweight" rating on the stock in a report on Thursday, October 15th. Weiss Ratings upgraded Johnson & Johnson from a "buy (b)" rating to a "buy (b+)" rating in a research report on Thursday, October 8th. TD Cowen reaffirmed a "buy" rating on shares of Johnson & Johnson in a research report on Tuesday. Finally, Bank of America reiterated a "neutral" rating and set a $278.00 price target on shares of Johnson & Johnson in a research note on Tuesday, September 29th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $275.92.

Johnson & Johnson Trading Up 3.8%

The stock has a market cap of $645.05 billion, a P/E ratio of 40.56, a PEG ratio of 2.56 and a beta of 0.21. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.09 and a quick ratio of 0.81. The business's 50 day simple moving average is $265.57 and its 200 day simple moving average is $250.11.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last released its quarterly earnings data on Tuesday, October 13th. The company reported $2.59 earnings per share for the quarter, beating 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 for the quarter, compared to analyst estimates of $25.38 billion. During the same period in the prior year, the company posted $2.80 EPS. The company's revenue was up 5.9% compared to the same quarter last year. Johnson & Johnson has set its FY 2026 guidance at 11.050-11.150 EPS. On average, analysts expect that Johnson & Johnson will post 11.12 earnings per share for the current fiscal year.

Johnson & Johnson Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 8th. Shareholders of record on Tuesday, November 24th will be issued 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 dividend yield of 2.0%. Johnson & Johnson's dividend payout ratio (DPR) is presently 81.21%.

Insider Transactions at Johnson & Johnson

In other news, EVP Elizabeth Forminard sold 15,918 shares of the company's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $257.00, for a total value of $4,090,926.00. Following the sale, the executive vice president owned 16,994 shares of the company's stock, valued at approximately $4,367,458. This represents a 48.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Jennifer Taubert sold 15,000 shares of the 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 sale, the executive vice president owned 194,451 shares of the company's stock, valued at $51,210,615.36. This trade represents a 7.16% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 64,515 shares of company stock valued at $17,271,766. 0.16% of the stock is owned by insiders.

Institutional Trading of Johnson & Johnson

Several hedge funds have recently modified their holdings of JNJ. Wellington Management Group LLP increased its position in Johnson & Johnson by 12.5% in the 2nd quarter. Wellington Management Group LLP now owns 22,588,696 shares of the company's stock valued at $5,736,851,000 after acquiring an additional 2,513,321 shares in the last quarter. Deutsche Bank AG increased its stake in Johnson & Johnson by 8.5% during the 2nd quarter. Deutsche Bank AG now owns 15,661,323 shares of the company's stock worth $3,977,506,000 after acquiring an additional 1,225,676 shares during the period. Amundi raised its holdings in Johnson & Johnson by 17.5% in the 1st quarter. Amundi now owns 13,406,820 shares of the company's stock valued at $3,277,163,000 after acquiring an additional 2,001,139 shares in the last quarter. Jupiter Topco LLC acquired a new position in Johnson & Johnson in the 2nd quarter valued at $1,967,399,000. Finally, Janus Henderson Group PLC increased its stake in shares of Johnson & Johnson by 1.9% in the first quarter. Janus Henderson Group PLC now owns 7,872,478 shares of the company's stock valued at $1,924,323,000 after buying an additional 148,497 shares during the period. Institutional investors and hedge funds own 69.55% of the company's stock.

Johnson & Johnson Company Profile

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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