Johnson & Johnson (NYSE:JNJ) Stock Falls 1.6% – Should You Sell?

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. 5,573,050 shares changed 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.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on JNJ. HSBC raised their target price on shares of Johnson & Johnson from $290.00 to $320.00 and gave the company a “buy” rating in a report on Thursday, September 10th. Raymond James Financial set a $280.00 price objective on shares of Johnson & Johnson in a research note on Monday, August 3rd. Argus set a $300.00 target price on shares of Johnson & Johnson in a report on Wednesday, July 29th. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $282.00 price target on shares of Johnson & Johnson in a report on Thursday, July 16th. Finally, Wall Street Zen lowered Johnson & Johnson from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $275.87.

Johnson & Johnson Stock Performance

The business’s 50-day moving average price is $265.99 and its 200-day moving average price is $247.86. The company has a current ratio of 1.09, a quick ratio of 0.81 and a debt-to-equity ratio of 0.44. The stock has a market cap of $645.04 billion, a PE ratio of 31.02, a P/E/G ratio of 2.59 and a beta of 0.24.

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, topping analysts’ consensus estimates of $2.84 by $0.06. Johnson & Johnson had a return on equity of 32.42% and a net margin of 21.48%.The business had revenue of $25.31 billion for the quarter, compared to the consensus estimate of $25.06 billion. During the same period in the prior year, the firm posted $2.77 earnings per share. The business’s quarterly revenue was up 6.6% on a year-over-year basis. Johnson & Johnson has set its FY 2026 guidance at 11.600-11.750 EPS. As a group, equities research analysts expect that Johnson & Johnson will post 11.61 earnings per share for the current fiscal year.

Johnson & Johnson Dividend Announcement

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

Insiders Place Their Bets

In other news, EVP Timothy Schmid sold 33,597 shares of the company’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $274.74, for a total transaction of $9,230,439.78. Following the transaction, the executive vice president owned 25,447 shares in the company, valued at $6,991,308.78. This represents a 56.90% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 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 completion of the transaction, the executive vice president directly owned 23,003 shares of the company’s stock, valued at $5,779,963.81. The trade was a 50.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 87,569 shares of company stock worth $23,064,544 over the last ninety days. Insiders own 0.16% of the company’s stock.

Hedge Funds Weigh In On Johnson & Johnson

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