Johnson & Johnson (NYSE:JNJ) Stock Price Down 1.2% – Time to Sell?

Shares of Johnson & Johnson (NYSE:JNJ) dropped 1.2% during mid-day trading on Monday. The company traded as low as $252.51 and last traded at $252.8960. 9,016,570 shares were traded during mid-day trading, an increase of 13% from the average daily volume of 8,001,250 shares. The stock had previously closed at $256.03.

Key Headlines Impacting Johnson & Johnson

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

• Positive Sentiment: RBC maintains a Buy rating: RBC Capital Markets continues to support JNJ, citing acceleration in the Innovative Medicine segment. The analyst view suggests pharmaceutical momentum may offset ongoing weakness and competition in MedTech. RBC Capital Keeps Their Buy Rating on Johnson & Johnson
• Positive Sentiment: ICOTYDE data strengthens the pipeline: Two-year Phase 3 results showed Johnson & Johnson’s once-daily oral psoriasis treatment maintained skin clearance and consistent safety through Week 112. The data support ICOTYDE’s potential as a differentiated treatment for difficult-to-treat psoriasis and improve confidence in JNJ’s replacement-product strategy. Long-Term Psoriasis Data for ICOTYDE
• Positive Sentiment: Defensive dividend appeal remains intact: Several investment articles continue to present JNJ as a reliable, recession-resistant Dividend King, supported by diversified pharmaceutical, medical-device and consumer-health exposure. This may attract investors seeking stability amid broader market concerns. Johnson & Johnson as a Defensive Dividend Stock
• Neutral Sentiment: MedTech performance is a key near-term test: Analysts expect Vision, Orthopedics and Surgery to potentially improve after a second-quarter slowdown, but Abiomed-related and competitive pressures remain. J&J MedTech Rebound Analysis
• Negative Sentiment: Patent-cliff and earnings risks remain: Investors are looking ahead to the October 13 earnings report and are concerned that a roughly $4 billion 2027 patent expiration could pressure future revenue. Current valuation also leaves less room for disappointment if results or guidance fall short. Johnson & Johnson Patent Cliff Analysis

Analyst Upgrades and Downgrades

JNJ has been the topic of a number of recent analyst reports. Guggenheim reissued a “buy” rating and set a $287.00 price target on shares of Johnson & Johnson in a research report on Wednesday. Morgan Stanley lifted their target price on Johnson & Johnson from $284.00 to $294.00 and gave the stock an “overweight” rating in a research note on Thursday, July 16th. Raymond James Financial set a $280.00 target price on Johnson & Johnson in a report on Monday, August 3rd. Royal Bank Of Canada raised their price target on Johnson & Johnson from $287.00 to $290.00 and gave the company an “outperform” rating in a report on Tuesday. Finally, UBS Group reaffirmed a “buy” rating on shares of Johnson & Johnson in a research report on Tuesday, September 22nd. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, Johnson & Johnson presently has a consensus rating of “Moderate Buy” and an average price target of $276.22.

Johnson & Johnson Price Performance

The stock has a market capitalization of $614.17 billion, a price-to-earnings ratio of 29.53, a P/E/G ratio of 2.48 and a beta of 0.21. The company’s 50-day simple moving average is $265.86 and its 200-day simple moving average is $248.63. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.09 and a quick ratio of 0.81.

Johnson & Johnson (NYSE:JNJ) last posted its earnings results on Wednesday, July 15th. The company reported $2.90 EPS for the quarter, beating the consensus estimate of $2.84 by $0.06. The company had revenue of $25.31 billion for the quarter, compared to the consensus estimate of $25.06 billion. Johnson & Johnson had a return on equity of 32.42% and a net margin of 21.48%.The firm’s revenue for the quarter was up 6.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.77 earnings per share. Johnson & Johnson has set its FY 2026 guidance at 11.600-11.750 EPS. Research analysts forecast that Johnson & Johnson will post 11.54 earnings per share for the current fiscal year.

Johnson & Johnson Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 8th. Shareholders of record on Tuesday, August 25th were given a dividend of $1.34 per share. The ex-dividend date was Tuesday, August 25th. This represents a $5.36 annualized dividend and a yield of 2.1%. Johnson & Johnson’s dividend payout ratio (DPR) is presently 62.11%.

Insider Transactions at Johnson & Johnson

In related news, EVP Vanessa Broadhurst sold 23,054 shares of the firm’s stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $251.27, for a total transaction of $5,792,778.58. Following the transaction, the executive vice president directly owned 23,003 shares of the company’s stock, valued at approximately $5,779,963.81. This trade represents a 50.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Timothy Schmid sold 33,597 shares of Johnson & Johnson stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $274.74, for a total transaction of $9,230,439.78. Following the completion of the sale, the executive vice president owned 25,447 shares of the company’s stock, valued at $6,991,308.78. This trade represents a 56.90% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 87,569 shares of company stock worth $23,064,544 over the last ninety days. Corporate insiders own 0.16% of the company’s stock.

Institutional Investors Weigh In On Johnson & Johnson

A number of hedge funds and other institutional investors have recently made changes to their positions in JNJ. Outlook Capital Management LLC acquired a new stake in Johnson & Johnson during the second quarter worth approximately $28,000. Matrix Trust Co lifted its position in shares of Johnson & Johnson by 56.2% during the 2nd quarter. Matrix Trust Co now owns 150 shares of the company’s stock valued at $38,000 after acquiring an additional 54 shares during the period. Hyposwiss Advisors SA acquired a new stake in shares of Johnson & Johnson during the 4th quarter worth $42,000. Montgomery Financial Services LLC acquired a new stake in shares of Johnson & Johnson during the 2nd quarter worth $43,000. Finally, Polaris Financial Partners bought a new position in shares of Johnson & Johnson in the third quarter worth $56,000. 69.55% of the stock is currently owned by institutional investors and hedge funds.

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.