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

On Wednesday, shares of Johnson & Johnson (NYSE: JNJ) experienced a decline of 0.8%, trading as low as $163.03 before settling at $162.92. In total, 892,432 shares exchanged hands, reflecting a significant drop of 87% from the average trading volume of around 7 million shares. The stock's previous closing price was $164.25.

Analyst Ratings and Price Targets

Numerous equity research analysts have offered insights into the stock's performance. Royal Bank of Canada reaffirmed an "outperform" rating and set a price target of $181.00. Guggenheim maintained a "neutral" rating, while Barclays increased their target from $159.00 to $166.00, assigning an "equal weight" rating. Conversely, Leerink Partners reduced their price target from $182.00 to $169.00 but still rated the stock as "outperform." StockNews.com upgraded JNJ from a "buy" to a "strong-buy" rating. Currently, nine analysts suggest holding the stock, eight recommend buying, and two have a strong buy rating for the company. According to MarketBeat, JNJ has an average rating of "Moderate Buy" with a consensus price target of $171.33.

Johnson & Johnson Financials

The company boasts a market capitalization of $391.30 billion, a P/E ratio of 24.41, and a P/E/G ratio of 2.56, with a beta of 0.47. Its debt-to-equity ratio stands at 0.43, and its current ratio is 1.11. Moreover, the 50-day and 200-day moving averages for JNJ are $155.73 and $156.25, respectively.

In its last quarterly earnings report released on January 22, Johnson & Johnson announced earnings of $2.04 per share, marginally exceeding the consensus estimate of $1.99. The company's revenue for the quarter was $22.52 billion, surpassing the expected figure of $22.44 billion. The firm's net margin was reported at 18.20%, with a return on equity of 34.24%. Compared to the previous year, revenue rose by 5.3%, although earnings per share dipped from $2.29 to $2.04. Analysts anticipate that J&J will achieve an EPS of $10.58 in the current fiscal year.

Dividend Update

Johnson & Johnson recently declared a quarterly dividend of $1.24 per share, which was distributed to shareholders on March 4. The ex-dividend date was February 18. This results in an annualized dividend payout of $4.96, corresponding to a dividend yield of 3.05%. The company has a dividend payout ratio (DPR) of 74.59%.

Insider Activity

In recent transactions, EVP Timothy Schmid sold 403 shares on February 18 for an average price of $156.15, totaling approximately $62,928.45. Post-sale, Schmid holds around 15,098 shares, valued at an estimated $2.36 million, marking a 2.60% decrease in his holdings. Additionally, VP Robert J. Decker sold 6,999 shares on February 25 for $165.88 each, totaling around $1.16 million, decreasing his position by 25.00%. Insider ownership in the company rests at about 0.16%.

Institutional Investors' Position

Institutional investors have been adjusting their stakes in J&J recently. Vanguard Group increased its holdings by 0.8% in the fourth quarter, now owning approximately 232.79 million shares valued around $33.67 billion. Similarly, State Street Corp raised its stake by 0.9%, with 134.25 million shares worth $21.76 billion. Geode Capital Management also increased their holdings by 2.8%. Northern Trust Corporation saw their stake grow by 12.3% in the same quarter. Notably, Norges Bank acquired a new stake in the company worth roughly $4.39 billion. In total, institutional investors own about 69.55% of Johnson & Johnson's stock.

About Johnson & Johnson

Johnson & Johnson is a diversified healthcare company involved in research, development, manufacturing, and sales across various healthcare sectors. The company operates through two major segments: Innovative Medicine and MedTech. The Innovative Medicine division focuses on fields such as immunology, infectious diseases, neuroscience, oncology, cardiovascular health, and pulmonary hypertension.

stock, dividend, investors