Citigroup Adjusts Price Expectations for Johnson & Johnson (NYSE: JNJ) Stock

On Wednesday, Citigroup announced a decrease in its price target for Johnson & Johnson (NYSE: JNJ), lowering it from $185.00 to $175.00. Despite this adjustment, the brokerage maintains a "buy" rating on the stock, suggesting that they believe it still has strong potential for growth.

Citigroup's new price target represents about a 19.32% upside from the stock's last closing price. This adjustment comes as part of a broader analysis where other research firms have also made recent updates on Johnson & Johnson.

Recent Analyst Reports

In recent weeks, several analysts have shared their insights on Johnson & Johnson. StockNews.com upgraded the shares from a "buy" to a "strong-buy" rating as of September 14. Cantor Fitzgerald reaffirmed an "overweight" rating with a price target of $215.00 noted in their report on October 16. On the same day, Wells Fargo raised their price target from $163.00 to $166.00, assigning an "equal weight" rating, while Guggenheim increased theirs from $156.00 to $162.00, indicating a “neutral” stance.

Furthermore, Morgan Stanley revised their target for shares of Johnson & Johnson from $169.00 to $175.00 and also holds an "equal weight" rating. Overall, among analysts, there are seven who have given Johnson & Johnson a hold rating, seven who have rated it as a buy, and one who has marked it as a strong buy. MarketBeat reports that the stock holds an average rating of "Moderate Buy" with a mean price target set at $174.73.

Stock Performance Overview

During trading on Wednesday, shares of Johnson & Johnson declined by $2.56, reaching a price of $146.67. This was against a trading volume of approximately 3,879,262 shares, which is lower than its average volume of 7,081,807. In the past year, the stock has fluctuated, hitting a 52-week low of $143.13 and a high of $168.85. The company's 50-day moving average sits at $157.58, while the 200-day moving average is at $156.42.

With a market capitalization of $353.13 billion, Johnson & Johnson's current ratio is 1.03, and its quick ratio is 0.79. The stock exhibits a PE ratio of 21.25 and a P/E/G ratio of 2.66, showing a stable performance amidst market challenges.

Recent Earnings and Financials

Johnson & Johnson recently released its earnings for the quarter on October 15, reporting earnings per share (EPS) of $2.42, which exceeded market expectations of $2.21 by $0.21. The company experienced a net margin of 19.14% and a remarkable return on equity of 35.45%. The revenue for this quarter amounted to $22.47 billion, surpassing analysts’ forecasts of $22.17 billion. This revenue is also reflective of a 5.2% increase compared to the same quarter last year, where the EPS recorded was $2.66.

Institutional Investments in Johnson & Johnson

In the context of institutional investments, several hedge funds and investors have recently altered their positions in Johnson & Johnson. DGS Capital Management, for example, increased its investment by 17.5% in the third quarter and now owns 5,404 shares valued at approximately $876,000. Meanwhile, Copley Financial Group has acquired a new stake worth $676,000. Retirement Systems of Alabama also increased its holdings by 4.0%, totaling 1,243,090 shares with a market value of around $201 million.

These movements illustrate the continued interest in Johnson & Johnson among institutional investors, who currently hold about 69.55% of the company’s shares.

Conclusion

Overall, while Citigroup’s price target has been lowered for Johnson & Johnson, the continued buy ratings from various analysts indicate a belief in the company's long-term growth potential. Investors should remain attentive to future market changes and earnings reports that may influence stock performance.

Citigroup, Johnson, Investors