Johnson & Johnson (NYSE:JNJ) Stock Price Down 2% – What’s Next?

Johnson & Johnson (NYSE:JNJ)’s share price dropped 2% during trading on Thursday . The company traded as low as $267.37 and last traded at $268.06. Approximately 6,451,552 shares traded hands during trading, a decline of 22% from the average daily volume of 8,271,416 shares. The stock had previously closed at $273.41.

Key Johnson & Johnson News

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

• Positive Sentiment: AI upgrade expands J&J’s MedTech opportunity. The FDA cleared MONARCH QUEST 3 software, adding artificial intelligence, 3D imaging and navigation features to J&J’s robotic bronchoscopy platform. The update could improve lung-diagnostic accuracy, support physician adoption and strengthen the company’s position in robotic procedures. Johnson & Johnson expands robotic bronchoscopy push
• Positive Sentiment: New medicines may offset patent losses. Investors are focusing on J&J’s newer immunology and neuroscience drugs as potential growth drivers capable of replacing revenue lost when older products, including Stelara, face patent-protection erosion. Johnson & Johnson’s message about its future
• Positive Sentiment: Fundamentals and analyst sentiment remain supportive. Second-quarter revenue increased 6.6% to $25.31 billion, while adjusted EPS of $2.90 exceeded expectations. J&J also raised its 2026 outlook, and analysts continue to rate the shares favorably ahead of third-quarter earnings. Johnson & Johnson stock and healthcare rotation
• Positive Sentiment: Dividend appeal remains intact. J&J raised its quarterly dividend to $1.34, marking its 64th consecutive year of increases. The dependable income stream may help support demand from defensive and income-oriented investors. Johnson & Johnson’s dividend outlook
• Neutral Sentiment: J&J is reportedly among the companies monitoring Seaport Therapeutics after its IPO. Any future partnership or acquisition could add neuroscience capabilities, but no transaction has been announced. Why J&J is watching Seaport Therapeutics
• Negative Sentiment: Insider selling and elevated valuation may be weighing on sentiment. EVP Jennifer Taubert sold 15,000 shares for about $3.95 million. Separately, J&J’s recent climb near its 52-week high leaves less room for disappointment, particularly as investors assess future patent expirations and the stock’s premium earnings multiple. J&J executive share sale

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on JNJ shares. Weiss Ratings upgraded Johnson & Johnson from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, July 24th. Raymond James Financial set a $280.00 price target on Johnson & Johnson in a research report on Monday, August 3rd. Johnson Rice reiterated a “buy” rating on shares of Johnson & Johnson in a research note on Monday, August 3rd. Morgan Stanley raised their target price on shares of Johnson & Johnson from $284.00 to $294.00 and gave the company an “overweight” rating in a research note on Thursday, July 16th. Finally, Wells Fargo & Company boosted their target price on shares of Johnson & Johnson from $272.00 to $282.00 and gave the stock an “overweight” rating in a report on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $268.22.

Johnson & Johnson Price Performance

The business has a fifty day moving average of $253.89 and a 200 day moving average of $242.23. The firm has a market cap of $646.00 billion, a P/E ratio of 31.06, a PEG ratio of 2.59 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.

Johnson & Johnson (NYSE:JNJ) last released its quarterly earnings data on Wednesday, July 15th. The company reported $2.90 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.84 by $0.06. The company had revenue of $25.31 billion during the quarter, compared to analysts’ expectations of $25.06 billion. Johnson & Johnson had a return on equity of 32.42% and a net margin of 21.48%.The business’s revenue was up 6.6% on a year-over-year basis. During the same period last year, the firm posted $2.77 earnings per share. Johnson & Johnson has set its FY 2026 guidance at 11.600-11.750 EPS. On average, sell-side analysts anticipate that Johnson & Johnson will post 11.61 earnings per share for the current year.

Johnson & Johnson Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 8th. Stockholders of record on Tuesday, August 25th will be given a $1.34 dividend. The ex-dividend date of this dividend is Tuesday, August 25th. This represents a $5.36 annualized dividend and a dividend yield of 2.0%. Johnson & Johnson’s dividend payout ratio is presently 62.11%.

Insider Activity at Johnson & Johnson

In other Johnson & Johnson news, EVP Elizabeth Forminard sold 15,918 shares of the firm’s stock in a transaction that occurred on Thursday, August 6th. The shares were 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 in the company, valued at $4,367,458. This trade represents a 48.37% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Vanessa Broadhurst sold 23,054 shares of the business’s stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $251.27, for a total value of $5,792,778.58. Following the sale, the executive vice president owned 23,003 shares of the company’s stock, valued at approximately $5,779,963.81. This represents a 50.06% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 63,972 shares of company stock worth $16,245,605. 0.16% of the stock is owned by corporate insiders.

Institutional Trading of Johnson & Johnson

Several institutional investors have recently added to or reduced their stakes in the company. Auto Owners Insurance Co lifted its holdings in shares of Johnson & Johnson by 22,225.6% during the fourth quarter. Auto Owners Insurance Co now owns 69,419,308 shares of the company’s stock worth $1,436,633,000 after buying an additional 69,108,368 shares in the last quarter. Norges Bank bought a new position in Johnson & Johnson during the fourth quarter worth about $6,924,523,000. Capital World Investors acquired a new stake in Johnson & Johnson in the 4th quarter worth about $2,005,942,000. Jupiter Topco LLC acquired a new position in shares of Johnson & Johnson during the 2nd quarter worth approximately $1,967,399,000. Finally, Diamant Asset Management Inc. increased its holdings in shares of Johnson & Johnson by 24,436.5% during the first quarter. Diamant Asset Management Inc. now owns 4,473,008 shares of the company’s stock worth $109,338,000 after purchasing an additional 4,454,778 shares during the period. 69.55% of the stock is currently owned by institutional investors.

Johnson & Johnson Company Profile

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.