Johnson & Johnson (NYSE:JNJ) Trading Up 0.6% - Here's Why

On Thursday, shares of Johnson & Johnson (NYSE:JNJ) saw a modest increase, trading up by 0.6%. The stock reached a high of $156.63 before settling at a price of $155.40. In mid-day trading, approximately 4,140,444 shares were exchanged, which represents a significant drop of 41% from the average daily volume of 7,057,054 shares. The previous closing price was $154.52.

Insights from Analysts

Several analysts have recently provided their opinions on JNJ shares. Wolfe Research started coverage on Johnson & Johnson and has given it an "outperform" rating with a target price set at $190.00. Meanwhile, Royal Bank of Canada raised their price target from $178.00 to $181.00 and also assigned an "outperform" rating. Wells Fargo & Company increased their price target from $163.00 to $166.00, maintaining an "equal weight" rating. Cantor Fitzgerald reiterated an "overweight" rating but set a higher target price of $215.00. Additionally, StockNews.com upgraded JNJ from a "buy" to a "strong-buy" rating last month. Currently, seven analysts classify the stock as a hold, eight as a buy, and one as a strong buy, leading to an overall average rating of "Moderate Buy" and a target price average of $175.94 according to MarketBeat.com.

Company Performance Metrics

The company's financial performance is also noteworthy. Johnson & Johnson has a debt-to-equity ratio of 0.45 and a current ratio of 1.03, with a quick ratio of 0.79. Its market capitalization stands at $374.14 billion. The stock has a P/E ratio of 22.49, a price-to-earnings growth ratio of 2.77, and a beta of 0.53. Moreover, the firm's 50-day moving average is $159.52, while its 200-day moving average is $156.38.

Recent Earnings Highlights

On October 15, Johnson & Johnson announced its latest earnings results. The company reported earnings per share (EPS) of $2.42 for the quarter, significantly surpassing analysts' expectations of $2.21 by $0.21. The return on equity was recorded at 35.45%, while the net profit margin stood at 19.14%. The total revenue for the quarter reached $22.47 billion, exceeding forecasts of $22.17 billion. In comparison to the same quarter last year, revenue increased by 5.2% from the EPS of $2.66 recorded in the prior year. Analysts anticipate that JNJ will report EPS of 9.93 for the current fiscal year.

Dividend Announcement

Johnson & Johnson recently declared a quarterly dividend that will be paid on December 10 to investors on record by November 26. The dividend set at $1.24 signifies an annualized payout of $4.96, resulting in a yield of 3.19%. The ex-dividend date is also noted as November 26. The company's dividend payout ratio stands at 71.78%.

Insider Activities

In insider news, Vice President Robert J. Decker sold 5,635 shares of the company's stock on August 30 at an average price of $165.06, totaling approximately $930,113. The transaction resulted in a 22.90% decrease in his position, leaving him with 18,973 shares valued around $3,131,683. This information was disclosed in a filing with the SEC. Insiders currently retain about 0.16% of the company's shares.

Hedge Fund Movements

Hedge funds have recently adjusted their positions in Johnson & Johnson. State Street Corp increased its holdings by 0.9% in the third quarter, now owning 134,245,811 shares valued at $21.76 billion after adding 1,154,088 shares. Geode Capital Management raised its stake by 1.8%, acquiring an additional 1,004,763 shares, bringing its total to 56,106,884 shares worth $9.06 billion. Massachusetts Financial Services also boosted its holdings by 10.8% in the second quarter, now holding 18,780,645 shares valued at $2.74 billion. FMR LLC increased its position by 7.4% during the third quarter, gaining 1,265,748 shares. Additionally, Charles Schwab Investment Management grew its stake by 0.6%. Overall, institutional and hedge funds hold approximately 69.55% of Johnson & Johnson's stock.

About Johnson & Johnson

Johnson & Johnson, along with its subsidiaries, is engaged in research, development, manufacturing, and sale of various healthcare products globally. Their Innovative Medicine segment provides products across several therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, cardiovascular health, and pulmonary hypertension.

Conclusion

Overall, Johnson & Johnson remains a key player in the healthcare sector, with positive analyst ratings, solid earnings reports, and an ongoing commitment to shareholder returns through dividends. Investors are encouraged to continuously monitor developments related to the company's performance on financial markets.

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