Johnson & Johnson (NYSE:JNJ) Stock Price Down 1.2% on Insider Selling

Key Points

• Johnson & Johnson shares fell 1.2% to $275.12 after EVP Timothy Schmid sold 33,597 shares for approximately $9.2 million, reducing his holdings by 56.9%.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $272.83, although some analysts have raised valuation and profit-taking concerns after the stock’s strong rally.
• Johnson & Johnson reported quarterly earnings and revenue above expectations and continues to support income investors with a quarterly dividend of $1.34, or $5.36 annually, yielding about 1.9%.

Johnson & Johnson (NYSE:JNJ - Get Free Report) dropped 1.2% on Friday following insider selling activity. The company traded as low as $274.75 and last traded at $275.12. 3,878,798 shares changed hands during trading, a decline of 52% from the average session volume of 8,138,780 shares. The stock had previously closed at $278.43.

Specifically, EVP Timothy Schmid sold 33,597 shares of the firm's stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $274.74, for a total transaction of $9,230,439.78. Following the transaction, the executive vice president owned 25,447 shares in the company, valued at approximately $6,991,308.78. This trade represents a 56.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link.

Analyst Ratings Changes

Several research analysts have issued reports on the stock. Wall Street Zen cut shares of Johnson & Johnson from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $282.00 price target on shares of Johnson & Johnson in a research report on Thursday, July 16th. HSBC set a $290.00 price objective on shares of Johnson & Johnson and gave the company a "buy" rating in a research note on Monday, July 6th. Scotiabank reissued an "outperform" rating and issued a $305.00 price objective on shares of Johnson & Johnson in a research note on Thursday, July 16th. Finally, Citigroup upped their target price on Johnson & Johnson from $285.00 to $298.00 and gave the stock a "buy" rating in a report on Wednesday, July 8th. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $272.83.

Key Headlines Impacting Johnson & Johnson

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

• Positive Sentiment: Analyst sentiment remains supportive. JNJ received an upgrade that helped it reach a new 12-month high, while the broader analyst view is rated “Moderate Buy.” UBS also began coverage, potentially increasing institutional attention. Johnson & Johnson Reaches New 12-Month High Following Analyst Upgrade Johnson & Johnson Receives Average Rating of Moderate Buy
• Positive Sentiment: Johnson & Johnson’s 64-year record of dividend growth remains a key support for income-oriented investors. Strong profitability and the company’s diversified healthcare portfolio help sustain the dividend despite competitive pressure on a major drug. Johnson & Johnson Is Boring Which Makes Its Dividend Nearly Perfect
• Neutral Sentiment: Management will discuss the business at the Deutsche Bank Healthcare Summit on September 17. The event could provide updates on pharmaceuticals, litigation and forward guidance, but it is not itself a change to earnings expectations. Johnson & Johnson to Participate in the Deutsche Bank 2026 Healthcare Summit
• Negative Sentiment: Profit-taking and valuation risk are elevated after JNJ gained about 60% over the past year versus roughly 21% for the S&P 500. Analysts question whether the current price already discounts growth above management’s near-term outlook. Was JNJ Stock Rally Actually Its Own? Is Johnson & Johnson Stock Priced For More Growth Than It Has Guided?
• Negative Sentiment: An executive vice president sold 33,597 shares worth approximately $9.2 million, reducing his holdings by 56.9%. The sale may reinforce short-term concerns about insider conviction, although it does not change JNJ’s fundamentals. SEC insider transaction filing
• Negative Sentiment: An analyst lowered the FY2026 EPS forecast, adding pressure to expectations. Talc litigation also remains unresolved despite a proposed path toward settlement, while the Louisiana verdict continues to focus attention on legal liability and potential costs. Johnson & Johnson dividend and competition analysis

Johnson & Johnson Stock Down 1.2%

The company has a 50-day moving average of $261.57 and a 200-day moving average of $244.85. 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 company has a market capitalization of $663.01 billion, a price-to-earnings ratio of 31.88, a price-to-earnings-growth ratio of 2.63 and a beta of 0.24.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last issued its quarterly earnings results on Wednesday, July 15th. The company reported $2.90 earnings per share for the quarter, topping analysts' consensus estimates of $2.84 by $0.06. The business had revenue of $25.31 billion for the quarter, compared to analyst estimates of $25.06 billion. Johnson & Johnson had a return on equity of 32.42% and a net margin of 21.48%.The company's revenue was up 6.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.77 earnings per share. Johnson & Johnson has set its FY 2026 guidance at 11.600-11.750 EPS. On average, equities analysts predict that Johnson & Johnson will post 11.61 earnings per share for the current fiscal year.

Johnson & Johnson Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Tuesday, August 25th will be issued a $1.34 dividend. The ex-dividend date of this dividend is Tuesday, August 25th. This represents a $5.36 dividend on an annualized basis and a dividend yield of 1.9%. Johnson & Johnson's dividend payout ratio (DPR) is currently 62.11%.

Institutional Investors Weigh In On Johnson & Johnson

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Parkside Financial Bank & Trust increased its holdings in Johnson & Johnson by 7.3% in the 2nd quarter. Parkside Financial Bank & Trust now owns 21,931 shares of the company's stock worth $5,570,000 after buying an additional 1,497 shares during the period. Range Advisory LLC boosted its holdings in shares of Johnson & Johnson by 15.8% in the 2nd quarter. Range Advisory LLC now owns 7,026 shares of the company's stock valued at $1,784,000 after acquiring an additional 961 shares during the last quarter. Brown Lisle Cummings Inc. increased its stake in shares of Johnson & Johnson by 2.1% in the second quarter. Brown Lisle Cummings Inc. now owns 14,036 shares of the company's stock worth $3,565,000 after acquiring an additional 284 shares during the period. Cornerstone Financial Management LLC increased its stake in shares of Johnson & Johnson by 4.5% in the second quarter. Cornerstone Financial Management LLC now owns 2,755 shares of the company's stock worth $700,000 after acquiring an additional 119 shares during the period. Finally, Tucker Asset Management LLC lifted its position in Johnson & Johnson by 173.4% during the second quarter. Tucker Asset Management LLC now owns 5,011 shares of the company's stock valued at $1,273,000 after purchasing an additional 3,178 shares during the period. 69.55% of the stock is currently owned by institutional investors and hedge funds.

About Johnson & Johnson

Johnson & Johnson is a multinational healthcare company headquartered in New Brunswick, New Jersey, that develops, manufactures and markets a broad range of products across pharmaceuticals, medical devices and previously consumer health. Founded in 1886 by the Johnson family, the company has grown into a global healthcare organization with operations and sales in many countries around the world.

The company's pharmaceuticals business, organized largely under its Janssen research and development organization, focuses on prescription medicines across therapeutic areas such as immunology, infectious disease, oncology and neuroscience.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source