Johnson & Johnson (NYSE:JNJ) Trading Down 0.8% - Is It Time to Sell?

On Wednesday, Johnson & Johnson (NYSE:JNJ) saw its shares dip by 0.8%, reaching a low of $163.03 and closing at $162.92. The trading volume for the day was 892,432 shares, a significant decline compared to the average of approximately 7 million shares. The previous closing price was $164.25, highlighting a slight downward trend.

Find Out More About Johnson & Johnson

Analyst Ratings

Several equity research analysts have recently provided their insights on Johnson & Johnson's stock. The Royal Bank of Canada maintained an "outperform" rating with a price target of $181.00 in a recent report. Guggenheim has issued a "neutral" rating, while Barclays has increased its price target from $159.00 to $166.00, assigning an "equal weight" rating. Leerink Partners downgraded their forecast slightly from $182.00 to $169.00, but still rated the stock as "outperform." Notably, StockNews.com upgraded its rating from "buy" to "strong-buy." Overall, nine analysts recommend holding the stock, eight suggest buying, and two have strong buy ratings. The consensus price target is $171.33, suggesting potential for future growth.

Current Performance Metrics

Johnson & Johnson has a market capitalization of approximately $391.3 billion, with a price-to-earnings (PE) ratio of 24.41 and a price-to-earnings growth (P/E/G) ratio of 2.56. The company maintains a debt-to-equity ratio of 0.43, indicating a relatively conservative approach to leveraging. The company's current financial ratios stand at a quick ratio of 0.86 and a current ratio of 1.11. The stock’s 50-day moving average price is $155.73, while the 200-day moving average price is $156.25, suggesting some volatility but overall stability in the longer term.

Recent Earnings Report

Johnson & Johnson's most recent earnings report was released on January 22, where the company reported earnings of $2.04 per share, surpassing expectations of $1.99 by $0.05. The firm posted impressive revenue figures of $22.52 billion for the quarter, also exceeding projections of $22.44 billion. The company’s net margin was reported at 18.20%, with a return on equity of 34.24%. Comparison with the same quarter last year shows a notable revenue increase of 5.3%. For the current fiscal year, analysts predict Johnson & Johnson will achieve earnings of $10.58 per share.

Dividend Information

Recently, Johnson & Johnson declared a quarterly dividend of $1.24 per share, which was paid out on March 4, to shareholders recorded on February 18. This signifies an annualized dividend of $4.96, giving it a yield of 3.05%. The company’s dividend payout ratio currently sits at 74.59%, indicating a healthy ability to maintain its dividend payments.

Insider Transactions

In regulatory news, Executive Vice President Timothy Schmid sold 403 shares at an average price of $156.15 on February 18, ultimately decreasing his holding by 2.60%. After the sale, he retains 15,098 shares valued over $2.35 million. Furthermore, Vice President Robert J. Decker sold 6,999 shares at an average price of $165.88 on February 25, reducing his overall position by 25% as well. Insider ownership currently accounts for only 0.16% of the company’s total shares.

Institutional Investors Involvement

Recent changes in institutional holdings have also been observed. Vanguard Group increased its stake in Johnson & Johnson by 0.8% during the fourth quarter, now owning over 232 million shares worth approximately $33.67 billion. Similarly, State Street Corp raised its ownership by 0.9% in the third quarter, with holdings valued at about $21.76 billion. Other significant investors include Geode Capital and Northern Trust Corp. Overall, institutional investors now hold 69.55% of Johnson & Johnson's stock.

About Johnson & Johnson

Johnson & Johnson is a well-established holding company engaged in healthcare product development, manufacturing, and sales. It operates through two primary segments: Innovative Medicine and MedTech, focusing on various therapeutic areas including immunology, infectious diseases, and oncology.

Johnson, Health, Stocks