Johnson & Johnson (NYSE:JNJ) Shares Up 1.4% – Still a Buy?

Johnson & Johnson (NYSE:JNJ) shot up 1.4% during trading on Wednesday. The stock traded as high as $260.68 and last traded at $258.2460. 5,276,486 shares changed hands during mid-day trading, a decline of 34% from the average session volume of 7,971,527 shares. The stock had previously closed at $254.78.

Key Stories Impacting Johnson & Johnson

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

• Positive Sentiment: Johnson & Johnson reported strong two-year Phase 3 ICONIC-LEAD results for ICOTYDE (icotrokinra) in moderate-to-severe plaque psoriasis. Nearly three-quarters of patients achieved clear or almost clear skin after two years, while the treatment maintained a favorable safety profile. The data support ICOTYDE’s potential as a differentiated oral psoriasis therapy and could strengthen JNJ’s future pharmaceutical growth. Johnson & Johnson ICOTYDE two-year results
• Positive Sentiment: Guggenheim reaffirmed its Buy rating, while Morgan Stanley also issued a Buy rating. The analyst support adds to the positive sentiment surrounding JNJ’s earnings outlook and pipeline investments. Guggenheim reaffirms Buy rating
• Positive Sentiment: Several articles highlighted JNJ’s established dividend-growth record and viewed the company as a relatively dependable income investment. That defensive appeal may attract investors seeking stability ahead of quarterly results. Healthcare Dividend Aristocrats
• Neutral Sentiment: JNJ is approaching its third-quarter earnings report. Analysts expect strong drug sales and contributions from newer launches, but investors will focus on whether Stelara biosimilar competition and Medical Technology weakness affect growth. J&J Q3 earnings outlook
• Negative Sentiment: JNJ faces a longer-term patent-cliff risk as exclusivity for major cancer drugs Imbruvica and Darzalex approaches expiration, potentially pressuring pharmaceutical revenue unless pipeline products and acquisitions offset the loss. Johnson & Johnson patent cliff
• Negative Sentiment: Boston Scientific is suing JNJ subsidiary Atraverse over alleged patent infringement involving the Hotwire cardiology system, seeking an injunction and damages. The case introduces potential legal costs and disruption for the Medical Technology business. Boston lawsuit against J&J subsidiary

Analyst Ratings Changes

Several equities analysts have recently issued reports on JNJ shares. Bank of America reiterated a “neutral” rating and set a $278.00 price objective on shares of Johnson & Johnson in a research report on Tuesday, September 29th. UBS Group reiterated a “buy” rating on shares of Johnson & Johnson in a research report on Tuesday, September 22nd. Raymond James Financial set a $280.00 price target on Johnson & Johnson in a research note on Monday, August 3rd. Stifel Nicolaus set a $260.00 price objective on shares of Johnson & Johnson in a research note on Wednesday, July 15th. Finally, Wells Fargo & Company upped their price objective on shares of Johnson & Johnson from $272.00 to $282.00 and gave the stock an “overweight” rating in a report on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, Johnson & Johnson presently has a consensus rating of “Moderate Buy” and an average price target of $276.22.

Johnson & Johnson Stock Performance

The stock has a market cap of $626.67 billion, a P/E ratio of 30.12, a PEG ratio of 2.59 and a beta of 0.21. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.09 and a quick ratio of 0.81. The company has a fifty day moving average of $265.73 and a 200 day moving average of $248.93.

Johnson & Johnson (NYSE:JNJ) last issued its quarterly earnings results on Wednesday, July 15th. The company reported $2.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.84 by $0.06. Johnson & Johnson had a return on equity of 32.42% and a net margin of 21.48%.The company had revenue of $25.31 billion for the quarter, compared to analysts’ expectations of $25.06 billion. During the same period last year, the firm earned $2.77 EPS. The firm’s revenue for the quarter was up 6.6% on a year-over-year basis. Johnson & Johnson has set its FY 2026 guidance at 11.600-11.750 EPS. On average, equities analysts predict that Johnson & Johnson will post 11.3 earnings per share for the current fiscal year.

Johnson & Johnson Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Investors 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 yield of 2.1%. The ex-dividend date of this dividend was Tuesday, August 25th. Johnson & Johnson’s payout ratio is presently 62.11%.

Insider Buying and Selling at Johnson & Johnson

In related news, EVP Jennifer L. Taubert sold 15,000 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $263.36, for a total value of $3,950,400.00. Following the sale, the executive vice president directly owned 194,451 shares in the company, valued at $51,210,615.36. The trade was a 7.16% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Vanessa Broadhurst sold 23,054 shares of the stock in a transaction that occurred on 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 sale, the executive vice president directly owned 23,003 shares of the company’s stock, valued at approximately $5,779,963.81. This represents a 50.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 87,569 shares of company stock valued at $23,064,544 in the last ninety days. 0.16% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of JNJ. Riversedge Advisors LLC boosted its stake in shares of Johnson & Johnson by 4.0% during the 3rd quarter. Riversedge Advisors LLC now owns 6,481 shares of the company’s stock worth $1,716,000 after acquiring an additional 250 shares in the last quarter. Wedmont Private Capital raised its position in shares of Johnson & Johnson by 22.2% during the third quarter. Wedmont Private Capital now owns 41,616 shares of the company’s stock worth $10,674,000 after purchasing an additional 7,564 shares during the period. Intelligence Driven Advisers LLC lifted its holdings in shares of Johnson & Johnson by 9.5% during the third quarter. Intelligence Driven Advisers LLC now owns 2,210 shares of the company’s stock valued at $585,000 after purchasing an additional 192 shares during the last quarter. Insight Wealth Strategies LLC boosted its position in shares of Johnson & Johnson by 8.8% in the 3rd quarter. Insight Wealth Strategies LLC now owns 925 shares of the company’s stock valued at $245,000 after purchasing an additional 75 shares during the period. Finally, McNaughton Wealth Management LLC purchased a new position in Johnson & Johnson in the 3rd quarter worth about $209,000. Institutional investors own 69.55% of the company’s stock.

About Johnson & Johnson

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.