Johnson & Johnson (NYSE:JNJ) Trading Down 0.8% - Should You Sell?

Shares of Johnson & Johnson (NYSE:JNJ) experienced a decline of 0.8% on Wednesday, trading as low as $163.03 before settling at $162.92. During the trading session, approximately 892,432 shares changed hands, which is a significant drop of 87% compared to the average volume of 7,029,957 shares. The stock closed the previous day at $164.25.

Analyst Ratings

Several research analysts have provided their outlook on Johnson & Johnson. Royal Bank of Canada reaffirmed an "outperform" rating with a price target of $181.00 in a report released on February 19th. Guggenheim maintained a "neutral" stance on the company on March 10th. Additionally, Barclays raised their price target from $159.00 to $166.00 while giving an "equal weight" rating on January 28th. Leerink Partners adjusted their price target from $182.00 to $169.00 while keeping an "outperform" rating on January 23rd. On January 25th, StockNews.com upgraded the rating from "buy" to "strong-buy". Overall, analyses indicate that nine research analysts maintain the stock with a hold rating; eight have a buy rating and two classify it as strong buy. The consensus average rating stands at "Moderate Buy" with a price target of $171.33.

Johnson & Johnson Overview

The company has a market capitalization of $391.30 billion, displaying a price-to-earnings (P/E) ratio of 24.41, a P/E/G ratio of 2.56, and a beta of 0.47. These indicators suggest a stable investment profile. Johnson & Johnson carries a debt-to-equity ratio of 0.43 with a quick ratio of 0.86 and a current ratio of 1.11. The firm’s 50-day moving average price is $155.73, while the 200-day moving average stands at $156.25.

Earnings Performance

In their latest quarterly earnings report released on January 22nd, Johnson & Johnson posted earnings of $2.04 per share, exceeding the consensus estimate of $1.99 by $0.05. The firm's revenue for the quarter was $22.52 billion, slightly outpacing the consensus estimate of $22.44 billion. They reported a net margin of 18.20% and a return on equity of 34.24%. Comparatively, their revenue increased by 5.3% year-over-year. Analysts predict the company will post an EPS of 10.58 for the current fiscal year.

Dividend Information

Recently, Johnson & Johnson announced a quarterly dividend, which was issued on March 4th. Stockholders on record as of February 18th received a dividend payment of $1.24 per share. This results in an annualized dividend of $4.96, leading to a dividend yield of 3.05%. The company has a dividend payout ratio (DPR) set at 74.59%.

Insider Transactions

In terms of insider trading, EVP Timothy Schmid sold 403 shares on February 18th at an average price of $156.15, totaling approximately $62,928.45. After this sale, Schmid retains 15,098 shares valued at around $2,357,552.70, marking a 2.60% decrease in his position. VP Robert J. Decker also sold 6,999 shares on February 25th at an average price of $165.88, generating about $1,160,994.12 in total. Following this transaction, Decker owns 21,001 shares valued at $3,483,645.88, indicating a 25.00% reduction in their stake. It’s also worth noting that corporate insiders own a small fraction, about 0.16%, of the company's stock.

Institutional Investor Activity

Institutional investors have made various adjustments to their positions in Johnson & Johnson. Vanguard Group Inc. increased its holdings by 0.8%, now owning 232,792,559 shares valued at approximately $33.67 billion after acquiring an additional 1,772,706 shares. State Street Corp also increased its stake by 0.9%, bringing its total to 134,245,811 shares worth about $21.76 billion. Similarly, Geode Capital Management LLC raised their stake by 2.8%, now holding 57,667,920 shares valued at $8.32 billion. Northern Trust Corp made a more significant move, raising its holdings by 12.3% to 30,813,175 shares worth $4.46 billion with an additional 3,363,235 shares acquired during the period. Norges Bank also entered a new position in Johnson & Johnson, valued at around $4.39 billion. Overall, institutional investors hold about 69.55% of the company’s stock.

Company Profile

Johnson & Johnson operates as a holding company, focusing on the research, development, manufacturing, and sale of healthcare products. It has two primary segments: Innovative Medicine and MedTech. The Innovative Medicine segment offers products related to immunology, infectious diseases, neuroscience, oncology, cardiovascular health, metabolism, and pulmonary hypertension.

Investment Considerations

Before making any investment decisions regarding Johnson & Johnson, it's essential to consider various factors. While analysts display a generally positive outlook, with a rating of "Moderate Buy," many analysts believe that there might be other stocks currently offering better investment potential.

Johnson, Investments, Healthcare