Johnson & Johnson (NYSE:JNJ) Stock Falls 1.4% – Here’s Why

Shares of Johnson & Johnson (NYSE:JNJ) 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) 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.