Johnson & Johnson Target of Unusually High Options Trading (NYSE:JNJ)

Johnson & Johnson (NYSE:JNJ) was the recipient of some unusual options trading activity on Friday. Investors bought 41,649 call options on the company. This represents an increase of approximately 45% compared to the average daily volume of 28,780 call options.

Key Johnson & Johnson News

Here are the key news stories impacting Johnson & Johnson this week:

• Positive Sentiment: Bloomberg/Reuters report that J&J is preparing a potential sale of its orthopedics unit for about $20B — a divestiture that could unlock value, simplify the company post‑split and attract buyout interest. Read More.
• Positive Sentiment: New Phase 1b/2 data for RYBREVANT FASPRO show a 56% overall response rate in first‑line recurrent/metastatic head & neck cancer — strengthens oncology franchise and supports regulatory/commercial upside. Read More.
• Positive Sentiment: Johnson & Johnson announced a ~$1B investment in a Pennsylvania cell‑therapy manufacturing facility, boosting capacity for biologics/cell therapy programs and creating jobs — a tangible capital deployment supporting growth. Read More.
• Positive Sentiment: Dividend and income story remains a tailwind (quarterly payout raised to $1.30), which supports demand from dividend‑focused investors. Read More.
• Neutral Sentiment: Market/coverage pieces (Zacks) and increased options activity are amplifying attention and volatility around JNJ but don’t change fundamentals by themselves. Read More. · Read More.
• Negative Sentiment: Rothschild & Co Redburn raised its PT to $210 but kept a “neutral” rating — the PT implies downside from recent levels and may have encouraged profit‑taking or reduced upside expectations. Read More.
• Negative Sentiment: Insider selling disclosed this week (senior executives sold sizeable blocks) can feed short‑term selling pressure or signal rebalancing by insiders. Read More.
• Negative Sentiment: Ongoing talc litigation and related headlines remain a material legal overhang that can constrain valuation multiple expansion despite operational gains. Read More.

Insider Transactions at Johnson & Johnson

In other news, EVP Vanessa Broadhurst sold 6,197 shares of the firm’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $243.39, for a total value of $1,508,287.83. Following the completion of the sale, the executive vice president directly owned 23,003 shares of the company’s stock, valued at $5,598,700.17. This trade represents a 21.22% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, EVP Timothy Schmid sold 22,623 shares of the business’s stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $244.33, for a total value of $5,527,477.59. Following the transaction, the executive vice president directly owned 26,769 shares in the company, valued at $6,540,469.77. The trade was a 45.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.16% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Blueline Advisors LLC acquired a new position in Johnson & Johnson during the fourth quarter worth about $25,000. Cresta Advisors Ltd. bought a new stake in shares of Johnson & Johnson during the 4th quarter valued at approximately $26,000. Abich Financial Wealth Management LLC acquired a new position in Johnson & Johnson during the 3rd quarter worth approximately $26,000. DecisionPoint Financial LLC lifted its stake in Johnson & Johnson by 104.2% in the 4th quarter. DecisionPoint Financial LLC now owns 147 shares of the company’s stock valued at $30,000 after purchasing an additional 75 shares during the last quarter. Finally, Bay Harbor Wealth Management LLC boosted its position in Johnson & Johnson by 49.0% in the fourth quarter. Bay Harbor Wealth Management LLC now owns 149 shares of the company’s stock valued at $31,000 after buying an additional 49 shares in the last quarter. 69.55% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several research firms have commented on JNJ. Sanford C. Bernstein upped their price objective on shares of Johnson & Johnson from $208.00 to $225.00 and gave the company a “market perform” rating in a report on Friday, January 23rd. The Goldman Sachs Group reissued a “buy” rating and issued a $250.00 price target on shares of Johnson & Johnson in a report on Thursday, January 22nd. Morgan Stanley set a $262.00 price objective on Johnson & Johnson and gave the stock an “overweight” rating in a report on Wednesday, January 28th. Citigroup upped their target price on Johnson & Johnson from $232.00 to $250.00 and gave the company a “buy” rating in a research report on Thursday, January 22nd. Finally, Wolfe Research lifted their price target on Johnson & Johnson from $225.00 to $240.00 and gave the stock an “outperform” rating in a report on Monday, January 5th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and nine have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Johnson & Johnson presently has an average rating of “Moderate Buy” and a consensus target price of $232.70.

Johnson & Johnson Price Performance

Johnson & Johnson stock traded down $2.82 during mid-day trading on Friday, reaching $244.09. 8,823,451 shares of the company were exchanged, compared to its average volume of 9,392,634. The company has a fifty day simple moving average of $220.45 and a 200-day simple moving average of $198.55. The firm has a market cap of $588.23 billion, a PE ratio of 22.10, a PEG ratio of 2.38 and a beta of 0.35. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.03 and a quick ratio of 0.77. Johnson & Johnson has a 12 month low of $141.50 and a 12 month high of $246.96.

Johnson & Johnson (NYSE:JNJ) last released its earnings results on Saturday, January 31st. The company reported $2.46 earnings per share (EPS) for the quarter. The company had revenue of $24.28 billion for the quarter. Johnson & Johnson had a return on equity of 33.04% and a net margin of 28.46%. As a group, equities research analysts expect that Johnson & Johnson will post 10.58 earnings per share for the current fiscal year.

Johnson & Johnson Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Tuesday, February 24th will be given a $1.30 dividend. The ex-dividend date is Tuesday, February 24th. This represents a $5.20 annualized dividend and a dividend yield of 2.1%. Johnson & Johnson’s payout ratio is presently 47.06%.

Johnson & Johnson Company Profile

Johnson & Johnson is a multinational healthcare company headquartered in New Brunswick, New Jersey, that develops, manufactures and markets a broad range of products across pharmaceuticals, medical devices and previously consumer health. Founded in 1886 by the Johnson family, the company has grown into a global healthcare organization with operations and sales in many countries around the world.

The company’s pharmaceuticals business, organized largely under its Janssen research and development organization, focuses on prescription medicines across therapeutic areas such as immunology, infectious disease, oncology and neuroscience.