Johnson & Johnson (NYSE:JNJ) Stock Jumps 3.9% – Should You Buy?

Shares of Johnson & Johnson (NYSE:JNJ) traded up 3.9% during mid-day trading on Wednesday. The company traded as high as $277.35 and last traded at $276.6240. Approximately 9,541,987 shares were traded during mid-day trading, an increase of 20% from the average session volume of 7,951,446 shares. The stock had previously closed at $266.17.

Key Headlines Impacting Johnson & Johnson

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

• Positive Sentiment: Wall Street analysts remain moderately bullish after J&J’s strong performance over the past year, offering support for the stock’s outlook. Are Wall Street Analysts Predicting Johnson & Johnson Stock Will Climb or Sink?
• Positive Sentiment: The State Street Health Care SPDR (XLV) added J&J shares as part of $175.3 million in purchases across all 60 of its holdings. The buying may provide modest investment demand, though the report did not specify the amount allocated to J&J. State Street Health Care SPDR Adds Eli Lilly and J&J
• Neutral Sentiment: A Trefis article examines whether J&J looks expensive. With shares near their 12-month high, valuation is a consideration, but the article listing does not provide enough detail to assess its conclusion. If Johnson & Johnson Stock Looks Expensive, You Need To Read This
• Neutral Sentiment: Smith+Nephew cut its outlook and confirmed failed merger talks involving J&J’s orthopaedics unit. The reports do not establish a direct financial impact on J&J; the failed talks may simply mean a potential strategic deal will not proceed. Smith+Nephew Cuts Outlook, Confirms Failed Merger Talks
• Negative Sentiment: Pomerantz LLP says it is investigating investor claims involving J&J. An investigation is not a finding of wrongdoing, but the announcement may add some legal-risk concern for investors. Pomerantz Law Firm Investigates Claims on Behalf of J&J Investors

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on JNJ. Stifel Nicolaus set a $260.00 price objective on Johnson & Johnson in a research report on Wednesday, July 15th. Royal Bank Of Canada dropped their price target on Johnson & Johnson from $290.00 to $280.00 and set an “outperform” rating on the stock in a research note on Wednesday, October 14th. Erste Group Bank cut Johnson & Johnson from a “buy” rating to a “hold” rating in a research note on Wednesday, October 21st. Freedom Capital raised Johnson & Johnson from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 16th. Finally, Johnson Rice cut shares of Johnson & Johnson from a “buy” rating to a “hold” rating in a research report on Wednesday, October 21st. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $275.92.

Johnson & Johnson Trading Up 3.9%

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 firm has a market capitalization of $665.92 billion, a P/E ratio of 41.91, a P/E/G ratio of 2.67 and a beta of 0.22. The firm has a 50-day moving average of $265.60 and a two-hundred day moving average of $247.46.

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. The business had revenue of $25.40 billion during the quarter, compared to analysts’ expectations of $25.38 billion. Johnson & Johnson had a return on equity of 31.64% and a net margin of 16.20%. The business’s revenue for the quarter was up 5.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.80 EPS. Johnson & Johnson has set its FY 2026 guidance at 11.050-11.150 EPS. On average, analysts anticipate that Johnson & Johnson will post 11.12 EPS for the current year.

Johnson & Johnson Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 8th. Shareholders of record on Tuesday, November 24th will be issued a dividend of $1.34 per share. This represents a $5.36 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Tuesday, November 24th. Johnson & Johnson’s payout ratio is currently 81.21%.

Insider Buying and Selling

In other Johnson & Johnson news, EVP Elizabeth Forminard sold 15,918 shares of the 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 transaction, the executive vice president directly owned 16,994 shares of the company’s stock, valued at approximately $4,367,458. This represents a 48.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Timothy Schmid sold 33,597 shares of the stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $274.74, for a total value of $9,230,439.78. Following the sale, the executive vice president owned 25,447 shares in the company, valued at approximately $6,991,308.78. This represents a 56.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 64,515 shares of company stock worth $17,271,766. 0.16% of the stock is owned by company insiders.

Institutional Investors Weigh In On Johnson & Johnson

A number of large investors have recently modified their holdings of JNJ. CKW Financial Group raised its position in Johnson & Johnson by 0.9% in the third quarter. CKW Financial Group now owns 4,269 shares of the company’s stock valued at $1,104,000 after purchasing an additional 37 shares during the period. Silver Coast Investments LLC lifted its stake in shares of Johnson & Johnson by 3.8% during the second quarter. Silver Coast Investments LLC now owns 1,066 shares of the company’s stock worth $271,000 after purchasing an additional 39 shares in the last quarter. Townsend Asset Management Corp NC ADV boosted its position in shares of Johnson & Johnson by 0.6% in the second quarter. Townsend Asset Management Corp NC ADV now owns 6,418 shares of the company’s stock worth $1,630,000 after buying an additional 39 shares during the period. Triumph Capital Management boosted its position in shares of Johnson & Johnson by 1.6% in the second quarter. Triumph Capital Management now owns 2,531 shares of the company’s stock worth $643,000 after buying an additional 39 shares during the period. Finally, Kwmg LLC grew its stake in shares of Johnson & Johnson by 1.7% in the third quarter. Kwmg LLC now owns 2,383 shares of the company’s stock valued at $631,000 after buying an additional 39 shares in the last quarter. Institutional investors own 69.55% of the company’s stock.

About Johnson & Johnson

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.