Johnson & Johnson (NYSE:JNJ) Stock Price Down 2.2% - Here's Why

Key Points

• JNJ shares fell 2.2% to about $258.81 in mid-day trading, with volume roughly in line with its average.
• Analysts remain generally optimistic ahead of the October 13 third-quarter report; Bank of America raised its price target to $278, while the broader consensus rating is “Moderate Buy” with an average target of $275.87.
• Key risks include STELARA’s loss of exclusivity and biosimilar competition, along with the possibility of an earnings miss or cautious guidance. Investors are looking for newer products such as Tremfya and Carvykti to offset potential pharmaceutical revenue pressure.

Johnson & Johnson (NYSE:JNJ - Get Free Report) shares fell 2.2% during mid-day trading on Thursday. The company traded as low as $258.33 and last traded at $258.8060. 8,154,469 shares traded hands during trading, an increase of 2% from the average session volume of 7,965,625 shares. The stock had previously closed at $264.74.

More Johnson & Johnson News

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

• Positive Sentiment: Bank of America raised its JNJ price target to $278 from $263, citing stronger growth prospects and pipeline strength. The firm also increased its estimate for oral psoriasis drug Icotyde’s peak sales to $4.5 billion from $2.4 billion, supporting the long-term earnings outlook. BofA Boosts AbbVie and J&J Price Targets on Growth and Pipeline Strength
• Positive Sentiment: Analysts remain broadly constructive ahead of JNJ’s October 13 third-quarter report, pointing to favorable Tremfya and Carvykti data. JNJ’s 64-year record of dividend increases and defensive healthcare businesses also continue to support its appeal to income-focused investors. Johnson & Johnson Gears Up for Q3 Earnings
• Neutral Sentiment: A new global survey sponsored by JNJ found that most women do not associate eye-health changes with menopause. The findings could support future education and consumer-health opportunities, but the survey itself is unlikely to materially affect near-term earnings. New Global Survey by Johnson & Johnson
• Negative Sentiment: Investors remain concerned about the anticipated loss of exclusivity and biosimilar erosion for STELARA, which could pressure pharmaceutical revenue. With JNJ’s shares up sharply over the past year and valuation elevated, the upcoming earnings report must demonstrate that newer products can offset that decline. Was the Run in JNJ Stock Hiding in Plain Sight?
• Negative Sentiment: The third-quarter preview calls for approximately $25.31 billion in revenue and $2.48 in adjusted EPS, creating risk of an earnings miss or cautious guidance. Broader dividend comparisons also highlight that patent cliffs and acquisition-related debt remain important risks for large pharmaceutical companies. Johnson & Johnson Q3 Preview

Wall Street Analysts Forecast Growth

JNJ has been the subject of a number of recent analyst reports. Guggenheim lifted their target price on Johnson & Johnson from $270.00 to $287.00 and gave the company a "buy" rating in a report on Thursday, August 6th. 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 report on Thursday, September 10th. Royal Bank Of Canada upped their target price on shares of Johnson & Johnson from $265.00 to $287.00 and gave the stock an "outperform" rating in a report on Monday, July 13th. Citigroup increased their target price on shares of Johnson & Johnson from $285.00 to $298.00 and gave the stock a "buy" rating in a research note on Wednesday, July 8th. Finally, Bank of America restated a "neutral" rating and set a $278.00 price target on shares of Johnson & Johnson in a research report on Tuesday. One research 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. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $275.87.

Johnson & Johnson Price Performance

The company has a market capitalization of $623.70 billion, a PE ratio of 29.99, a price-to-earnings-growth ratio of 2.55 and a beta of 0.24. The company has a quick ratio of 0.81, a current ratio of 1.09 and a debt-to-equity ratio of 0.44. The firm's 50-day moving average is $266.53 and its 200-day moving average is $248.19.

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 (EPS) for the quarter, topping the consensus estimate of $2.84 by $0.06. The firm had revenue of $25.31 billion during 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% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.77 earnings per share. Johnson & Johnson has set its FY 2026 guidance at 11.600-11.750 EPS. Equities analysts predict that Johnson & Johnson will post 11.61 earnings per share for the current fiscal year.

Johnson & Johnson Dividend Announcement

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

Insider Buying and Selling at Johnson & Johnson

In related news, EVP Timothy Schmid sold 33,597 shares of the stock in a transaction on Wednesday, September 2nd. The shares were 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 of the company's stock, valued at approximately $6,991,308.78. This trade represents a 56.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Elizabeth Forminard sold 15,918 shares of the business's stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $257.00, for a total transaction of $4,090,926.00. Following the completion of the sale, the executive vice president directly owned 16,994 shares of the company's stock, valued at $4,367,458. This represents a 48.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 87,569 shares of company stock worth $23,064,544 over the last 90 days. Company insiders own 0.16% of the company's stock.

Institutional Inflows and Outflows

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

Johnson & Johnson Company Profile

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.

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