Johnson & Johnson (NYSE:JNJ) Stock Falls 1.4% - Here's Why

Key Points

• Johnson & Johnson shares fell 1.4% to about $272.49, with trading volume 21% above its daily average; the article does not identify a specific direct catalyst for the decline.
• Analyst sentiment remains moderately bullish: 18 analysts rate the stock Buy or Strong Buy and eight rate it Hold, with a consensus price target of $275.92.
• J&J beat quarterly earnings and revenue estimates, while revenue rose 5.9% year over year. It declared a quarterly dividend of $1.34 per share, equivalent to a 2.0% annualized yield.

Shares of Johnson & Johnson (NYSE:JNJ - Get Free Report) traded down 1.4% on Thursday. The stock traded as low as $271.64 and last traded at $272.4910. 9,643,708 shares traded hands during mid-day trading, an increase of 21% from the average daily volume of 7,957,145 shares. The stock had previously closed at $276.32.

Key Stories Impacting Johnson & Johnson

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

• Positive Sentiment: Dividend-focused articles highlight J&J as an established income stock with a long history of annual payout increases, supporting its appeal to long-term investors. 4 Dividend Kings That Could Pay You for the Rest of Your Retirement
• Positive Sentiment: The State Street Health Care SPDR (XLV) added J&J shares as part of a $175.3 million round of purchases that increased all of the fund’s positions, providing a modest demand signal. State Street Health Care SPDR Adds Eli Lilly and J&J
• Neutral Sentiment: Wall Street analysts remain moderately bullish, according to a recent review, although the article notes J&J has already rallied over the past year. Are Wall Street Analysts Predicting Johnson & Johnson Stock Will Climb or Sink?
• Neutral Sentiment: A comparison with Bayer frames JNJ as a potential value stock but provides no clear conclusion in the supplied summary. BAYRY vs. JNJ: Which Stock Is the Better Value Option?
• Negative Sentiment: Rate-hike expectations and Treasury yields above the dividend yields of stocks discussed in recent income coverage could make dividend shares less attractive. This is a broader market risk, not a J&J-specific development. Rate Hikes Could Be Coming: History Likes These 4 Dividend Stocks
• Negative Sentiment: Smith+Nephew confirmed merger talks with J&J’s orthopaedics unit failed. This removes a potential transaction, though the supplied report does not indicate a direct financial impact on J&J. Smith+Nephew cuts outlook, confirms failed merger talks

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on JNJ. Morgan Stanley decreased their price target on shares of Johnson & Johnson from $294.00 to $292.00 and set an "overweight" rating on the stock in a research note on Thursday, October 15th. Stifel Nicolaus set a $260.00 price objective on Johnson & Johnson in a report on Wednesday, July 15th. Argus set a $300.00 target price on shares of Johnson & Johnson in a research report on Wednesday, July 29th. TD Cowen restated a "buy" rating on shares of Johnson & Johnson in a research note on Tuesday, October 20th. Finally, Raymond James Financial set a $280.00 target price on Johnson & Johnson in a report on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $275.92.

Johnson & Johnson Stock Down 1.4%

The company has a 50-day moving average of $265.67 and a 200-day moving average of $247.74. 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 company has a market capitalization of $655.97 billion, a price-to-earnings ratio of 41.29, a price-to-earnings-growth ratio of 2.63 and a beta of 0.22.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last issued its earnings results on Tuesday, October 13th. The company reported $2.59 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.53 by $0.06. Johnson & Johnson had a return on equity of 31.64% 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 last year, the business posted $2.80 EPS. The firm's quarterly 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. On average, equities analysts predict that Johnson & Johnson will post 11.12 earnings per share for the current fiscal year.

Johnson & Johnson Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 8th. Shareholders of record on Tuesday, November 24th will be issued a $1.34 dividend. This represents a $5.36 annualized dividend and a yield of 2.0%. The ex-dividend date of this dividend is Tuesday, November 24th. Johnson & Johnson's dividend payout ratio is presently 81.21%.

Insider Activity

In other Johnson & Johnson news, EVP Jennifer 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 transaction, the executive vice president owned 194,451 shares in the company, valued at approximately $51,210,615.36. This trade represents a 7.16% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Timothy Schmid sold 33,597 shares of the business'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 transaction, the executive vice president directly owned 25,447 shares of the company's stock, valued at approximately $6,991,308.78. This trade represents a 56.90% decrease in their position. The SEC filing for this sale provides additional information. 0.16% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Johnson & Johnson

Hedge funds have recently bought and sold shares of the stock. Outlook Capital Management LLC acquired a new position in Johnson & Johnson during the second quarter worth approximately $28,000. Matrix Trust Co raised its holdings in shares of Johnson & Johnson by 56.2% in the second quarter. Matrix Trust Co now owns 150 shares of the company's stock valued at $38,000 after buying an additional 54 shares during the last quarter. Navigoe LLC raised its holdings in shares of Johnson & Johnson by 60.4% in the third quarter. Navigoe LLC now owns 146 shares of the company's stock valued at $38,000 after buying an additional 55 shares during the last quarter. Montgomery Financial Services LLC acquired a new stake in shares of Johnson & Johnson during the second quarter worth about $43,000. Finally, Hanseatic Management Services Inc. purchased a new position in shares of Johnson & Johnson during the third quarter worth about $52,000. Hedge funds and other institutional investors 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.

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.