Johnson & Johnson (NYSE:JNJ) Stock Price Down 0.2% - Time to Sell?

On Thursday, shares of Johnson & Johnson (NYSE:JNJ) experienced a slight dip, trading down by 0.2%. The stock reached a low of $159.46 before settling at $160.35 by the end of the trading day. In total, about 834,487 shares changed hands, reflecting a significant decrease of 88% compared to the average trading volume of approximately 6,955,895 shares. The previous closing price was $160.61.

Market Reactions and Analyst Ratings

Johnson & Johnson has caught the attention of various equity research analysts recently. For instance, Daiwa America downgraded its rating on the stock from a "strong-buy" to a "hold" on July 23rd. Meanwhile, Goldman Sachs adjusted their price target from $160.00 to $155.00, maintaining a "neutral" rating on the company after a report released on July 19th. In contrast, Royal Bank of Canada raised its price target from $178.00 to $181.00 and gave the stock an "outperform" rating in their recent analysis on October 16th. Notably, StockNews.com upgraded Johnson & Johnson from a "buy" to a "strong-buy" on September 14th. TD Cowen also revised their target price downward from $195.00 to $185.00 while keeping a "buy" rating. The overall consensus shows six analysts rating the stock as a hold, seven as a buy, and one as a strong buy, leading to a consensus rating of "Moderate Buy" with an average price target of $175.93.

Current Financial Overview

On the financial front, Johnson & Johnson reported an earnings per share (EPS) of $2.42 for the latest quarter, which exceeded analysts' expectations of $2.21 by $0.21. The company generated revenues of $22.47 billion during this period, surpassing the anticipated $22.17 billion. They recorded a healthy return on equity of 35.46% and a net margin of 19.14%, with revenues up 5.2% from the same quarter of the previous year. Disappointingly, the EPS dropped from $2.66 in the same quarter last year. Analysts project that Johnson & Johnson will post an EPS of 9.94 for the current fiscal year.

Dividends and Shareholder Returns

In addition to the recent stock activity, the company declared a quarterly dividend set to be paid on December 10th. Shareholders recorded by November 26th will receive a dividend of $1.24 per share, translating to an annualized dividend of $4.96 and a yield of 3.09%. The dividend payout ratio stands at 30.92%.

Insider Trading Activity

In related developments, Robert J. Decker, a vice president at the company, sold 5,635 shares on August 30th at an average price of $165.06, resulting in a total transaction value of about $930,113. Following this sale, Decker still owns approximately 18,973 shares of the company. Currently, only 0.16% of the stock is held by insiders.

Institutional Investments

It's worth noting that various hedge funds and institutional investors have modified their stakes in Johnson & Johnson. For example, Baugh & Associates LLC increased its holdings by 3.3%, owning 31,997 shares valued at nearly $4.94 million after purchasing an additional 1,014 shares. Financial Enhancement Group LLC also raised its position by 9.1%, bringing its stake to 1,707 shares worth around $272,000. In total, 69.55% of the stock is owned by institutional investors.

Company Background

Johnson & Johnson operates worldwide, engaging in the research, development, manufacturing, and sale of a wide range of healthcare products. Its Innovative Medicine segment focuses on therapeutic areas such as immunology, infectious diseases, neuroscience, oncology, cardiovascular health, and pulmonary hypertension.

Conclusion

This recent performance and market analysis may lead some investors to reconsider their positions. With mixed signals from analysts and ongoing developments in trading activity, investors may be pondering whether it’s the right time to hold or sell their Johnson & Johnson shares.

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