Johnson & Johnson (NYSE:JNJ) Trading Up 0.3% - Here's Why

On Friday, shares of Johnson & Johnson (NYSE:JNJ) experienced a modest increase, trading up 0.3%. The stock reached a peak of $161.05 before settling at $160.36 by the end of the trading session. A total of 642,587 shares were exchanged, which represents a significant decline of 91% from the average daily volume of 6,962,811 shares. The stock had previously closed at $159.86.

Market Analysts Adjust Price Targets

Numerous brokerages have recently provided insights on JNJ's stock performance. Citigroup upgraded its price target for Johnson & Johnson from $180.00 to $185.00, attaching a "buy" rating in a report published on October 16th. Meanwhile, Wells Fargo & Company adjusted their price target from $163.00 to $166.00, rating the stock as "equal weight". StockNews.com has also enhanced its position on Johnson & Johnson, revising its rating from "buy" to "strong-buy" in a report dated September 14th. Cantor Fitzgerald maintained an "overweight" rating with a target price of $215.00 in an analysis on October 16th. Conversely, TD Cowen reduced their projection, lowering the price target from $195.00 to $185.00 but retained a "buy" stance. Overall, the analysts' ratings include six hold ratings, seven buy ratings, and one strong buy, resulting in a consensus of "Moderate Buy" with an average price target of $175.93 as per MarketBeat.com data.

Recent Stock Movement

The stock has moved positively, with a noted increase of 0.6%. The current 50-day and 200-day moving averages stand at $163.39 and $155.35, respectively. With a market cap of $387.12 billion, Johnson & Johnson boasts a P/E ratio of 23.21, a PEG ratio of 2.85, and a beta of 0.52. Financial indicators show a debt-to-equity ratio of 0.45, a quick ratio of 0.79, and a current ratio of 1.03.

Quarterly Earnings Report

On October 15th, Johnson & Johnson released its latest quarterly earnings, reporting earnings per share (EPS) of $2.42. This figure surpassed the consensus estimate of $2.21 by $0.21. Additionally, the company's revenue for the quarter was recorded at $22.47 billion, exceeding expectations of $22.17 billion. The return on equity stood at 35.45%, with a net profit margin of 19.14%. The latest revenue figure represents a 5.2% increase compared to the same quarter last year. For context, the EPS from the previous year was $2.66. Analysts predict that Johnson & Johnson will achieve an EPS of 9.94 for the current fiscal year.

Dividend Announcement

Recently, Johnson & Johnson declared a quarterly dividend payment scheduled for December 10th. Shareholders who are on record by November 26th will receive a dividend of $1.24, which translates to an annualized dividend of $4.96 and a yield of 3.08%. The ex-dividend date is also set for November 26th. Currently, the company’s dividend payout ratio is 71.78%.

Insider Selling Activity

In other updates regarding insider activities, Vice President Robert J. Decker sold 5,635 shares of Johnson & Johnson on August 30th, fetching an average price of $165.06 for a total of approximately $930,113. The transaction resulted in no change to his overall stake in the company, which now consists of 18,973 shares valued at around $3,131,683.38. Insider ownership constitutes about 0.16% of the company's stock.

Institutional Investor Activity

In recent trading activity involving institutional investors, several firms have made changes to their positions in Johnson & Johnson. Meridian Financial Partners LLC acquired a new stake valued at $1,626,000 in the second quarter. Summit Financial Wealth Advisors LLC has increased their holdings by 26.3% in the first quarter, now owning 5,392 shares worth around $853,000 after adding 1,122 shares. Franklin Parlapiano Turner & Welch LLC, along with other institutional players, has also raised their equity stakes in the company. A total of approximately 69.55% of Johnson & Johnson's stock is now held by institutional investors.

Company Overview

Johnson & Johnson, along with its subsidiaries, engages in the research, development, manufacturing, and sale of diverse healthcare products worldwide. Its Innovative Medicine segment caters to various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, cardiovascular, metabolism, and pulmonary hypertension, supplying healthcare professionals and retail channels with prescription products.

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