Johnson & Johnson (NYSE:JNJ) Trading 2.7% Higher - What's Next?

Johnson & Johnson (NYSE:JNJ) experienced a rise of 2.7% during trading on Monday. The stock reached a peak of $151.70 before finally trading at $150.74. During mid-day trading, a total of 4,201,941 shares were exchanged, marking a significant 54% decrease from the average session volume of 9,172,508 shares. The previous closing price was $146.82.

Analyst Perspectives on JNJ

Multiple research analysts have recently given their opinions on Johnson & Johnson's stock. Citigroup lowered its price target for JNJ from $185.00 to $175.00, while affirming a "buy" rating. Likewise, Royal Bank of Canada maintained an "outperform" rating but adjusted its price target to $181.00. Guggenheim also increased its target price from $156.00 to $162.00 with a "neutral" rating. Meanwhile, Raymond James revised its target from $170.00 to $165.00, still recommending an "outperform" rating. Additionally, Barclays decreased its price objective from $160.00 to $159.00, setting an "equal weight" rating. Overall, nine analysts denote a hold rating, while eight suggest buying, and one rates it as a strong buy. According to MarketBeat.com, Johnson & Johnson has a consensus rating of "Moderate Buy" with an average target price of $170.06.

Trading Insights and Financials

The company boasts a current ratio of 1.03, complemented by a quick ratio of 0.79 and a debt-to-equity ratio of 0.45. With a market capitalization of $367.73 billion, JNJ has a price-to-earnings (P/E) ratio of 22.97 and a P/E/G ratio of 2.45. The stock's 50-day moving average price stands at $147.85, while the 200-day moving average is $156.10.

On January 22, Johnson & Johnson announced its earnings results, reporting an earnings per share (EPS) of $2.04 for the quarter. This was above the analysts' consensus estimate of $1.99 by $0.05. The company achieved a return on equity of 34.35% and net profit margins of 18.20%. Revenue reached $22.52 billion, which exceeded the consensus estimate of $22.44 billion. In the same period last year, the company's EPS was $2.29. This year, analysts anticipate that Johnson & Johnson will report an EPS of 10.56.

New Dividend Announcement

Recently, Johnson & Johnson also announced a quarterly dividend that will be issued on March 4. Shareholders of record by February 18 will receive a dividend of $1.24. The ex-dividend date is set for February 18, resulting in an annualized dividend of $4.96 and a yield of 3.25%. The current payout ratio stands at 74.59%.

Insider Activity

In terms of insider trading, Director Mark A. Weinberger purchased 1,000 shares of Johnson & Johnson on December 12 at an average price of $147.22 per share, totaling $147,220. After this acquisition, the director now holds 1,000 shares of the company. This purchase was disclosed in a filing with the SEC, and it is noted that insiders own approximately 0.16% of the stock.

Institutional Investor Movements

Several institutional investors have made adjustments to their stakes in Johnson & Johnson. For instance, Summit Wealth Partners LLC increased its holdings by 0.6% during the second quarter, accumulating 10,007 shares valued at approximately $1.46 million. Powers Advisory Group LLC also raised its stake by 0.6%, now owning 9,489 shares worth around $1.54 million. Eagle Wealth Strategies LLC expanded its holdings by 2.8%, while Knuff & Co LLC and Perkins Coie Trust Co also increased their positions by modest percentages. Currently, institutional investors and hedge funds collectively own about 69.55% of JNJ stock.

Company Overview

Johnson & Johnson is a holding company engaged in the research, development, manufacturing, and selling of various healthcare products. The company operates through two segments: Innovative Medicine and MedTech. The Innovative Medicine segment primarily focuses on immunology, infectious diseases, neuroscience, oncology, cardiovascular and metabolism, and pulmonary hypertension.

Stock, Price, Volume