Johnson & Johnson (NYSE:JNJ) Stock Price Down 1.6% – Here’s Why

Johnson & Johnson (NYSE:JNJ)’s share price fell 1.6% during trading on Tuesday. The company traded as low as $265.59 and last traded at $267.6610. Approximately 5,573,050 shares traded hands during trading, a decline of 30% from the average daily volume of 7,988,070 shares. The stock had previously closed at $271.95.

Key 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 and increased its peak-sales estimate for oral psoriasis drug Icotyde to $4.5 billion from $2.4 billion. The revision reflects greater confidence in the drug’s commercial potential and a broader rerating of defensive healthcare companies. Johnson & Johnson’s psoriasis drug Icotyde could hit $4.5B in peak sales, BofA says
• Positive Sentiment: JPMorgan raised its price target to $285 from $270 while maintaining a Neutral rating, implying additional upside based on the cited reference price. JPMorgan raises Johnson & Johnson price target
• Positive Sentiment: New IMAAVY data showed sustained disease control, improved daily function and muscle strength, and reduced corticosteroid use in generalized myasthenia gravis patients. The findings support the drug’s long-term growth prospects, although they remain clinical rather than immediate financial results. Johnson & Johnson presents new IMAAVY data
• Positive Sentiment: Recent updates also highlighted positive late-stage or commercial catalysts, including Tremfya’s successful Phase 4 psoriatic arthritis study and Caplyta’s Phase 3 success in bipolar mania, strengthening the post-Stelara growth narrative.
• Neutral Sentiment: BofA’s target increase was accompanied by a Neutral rating and a warning that third-quarter earnings could come in about 12% below Wall Street expectations. Investors may therefore see longer-term pipeline value but limited near-term earnings momentum. BofA raises J&J target but sees Q3 earnings below Street
• Negative Sentiment: JNJ’s roughly 96% five-year rally and valuation near 31 times earnings increase the risk that considerable future growth is already reflected in the stock. Ongoing Stelara erosion and litigation costs remain additional overhangs.

Wall Street Analysts Forecast Growth

Several brokerages have commented on JNJ. Weiss Ratings upgraded shares of Johnson & Johnson from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, July 24th. Stifel Nicolaus set a $260.00 price objective on Johnson & Johnson in a research report on Wednesday, July 15th. Raymond James Financial set a $280.00 target price on Johnson & Johnson in a report on Monday, August 3rd. Wall Street Zen cut Johnson & Johnson from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Finally, Johnson Rice restated a “buy” rating on shares of Johnson & Johnson in a report on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, Johnson & Johnson currently has an average rating of “Moderate Buy” and an average target price of $275.87.

Johnson & Johnson Trading Down 1.6%

The stock has a market cap of $645.04 billion, a PE ratio of 31.02, a price-to-earnings-growth ratio of 2.59 and a beta of 0.24. The firm has a 50-day moving average price of $265.99 and a 200-day moving average price of $247.86. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.81 and a current ratio of 1.09.

Johnson & Johnson (NYSE:JNJ) last issued its 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 for the quarter, compared to the consensus estimate of $25.06 billion. Johnson & Johnson had a net margin of 21.48% and a return on equity of 32.42%. The business’s revenue was up 6.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.77 earnings per share. Johnson & Johnson has set its FY 2026 guidance at 11.600-11.750 EPS. As a group, equities analysts anticipate that Johnson & Johnson will post 11.61 EPS for the current fiscal year.

Johnson & Johnson Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 8th. Stockholders of record on Tuesday, August 25th were issued a dividend of $1.34 per share. This represents a $5.36 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend was Tuesday, August 25th. Johnson & Johnson’s dividend payout ratio is presently 62.11%.

Insiders Place Their Bets

In other Johnson & Johnson news, EVP Jennifer Taubert sold 15,000 shares of the company’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $263.36, for a total transaction of $3,950,400.00. Following the transaction, the executive vice president owned 194,451 shares in the company, valued at approximately $51,210,615.36. This represents a 7.16% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Vanessa Broadhurst sold 23,054 shares of Johnson & Johnson stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $251.27, for a total transaction of $5,792,778.58. Following the completion of the sale, the executive vice president owned 23,003 shares of the company’s stock, valued at $5,779,963.81. This represents a 50.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 87,569 shares of company stock valued at $23,064,544. 0.16% of the stock is currently owned by corporate insiders.

Institutional Trading of Johnson & Johnson

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in JNJ. QRG Capital Management Inc. increased its stake in shares of Johnson & Johnson by 5.7% in the second quarter. QRG Capital Management Inc. now owns 440,815 shares of the company’s stock worth $111,954,000 after purchasing an additional 23,837 shares in the last quarter. Security National Bank of Sioux City Iowa IA lifted its position in shares of Johnson & Johnson by 27.2% in the second quarter. Security National Bank of Sioux City Iowa IA now owns 18,143 shares of the company’s stock valued at $4,608,000 after acquiring an additional 3,878 shares in the last quarter. Reynders McVeigh Capital Management LLC grew its position in shares of Johnson & Johnson by 0.7% during the second quarter. Reynders McVeigh Capital Management LLC now owns 76,513 shares of the company’s stock worth $19,432,000 after purchasing an additional 499 shares in the last quarter. Bullseye Investment Management LLC purchased a new position in Johnson & Johnson in the 2nd quarter worth approximately $63,000. Finally, Talon Private Wealth LLC raised its position in shares of Johnson & Johnson by 89.5% during the second quarter. Talon Private Wealth LLC now owns 10,588 shares of the company’s stock valued at $2,689,000 after buying an additional 5,002 shares during the last quarter. 69.55% of the stock is owned by hedge funds and other institutional investors.

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.