Johnson & Johnson (NYSE:JNJ) Stock Price Down 5.2% – What’s Next?

Johnson & Johnson (NYSE:JNJ)’s stock price fell 5.2% during trading on Tuesday. The company traded as low as $252.27 and last traded at $250.00. 1,295,679 shares traded hands during trading, a decline of 84% from the average daily volume of 7,911,786 shares. The stock had previously closed at $263.73.

Johnson & Johnson News Roundup

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

• Positive Sentiment: Quarterly results exceeded expectations: Adjusted earnings per share were $2.59 versus the $2.53 consensus, while revenue rose 5.9% year over year to $25.40 billion, slightly above estimates. Growth in Innovative Medicine helped support results. Johnson & Johnson Q3 Earnings Surpass Estimates
• Positive Sentiment: Full-year outlook was raised: J&J now expects 2026 adjusted EPS of approximately $11.05 to $11.15, signaling confidence in its operating momentum despite ongoing portfolio challenges. Johnson & Johnson reports Q3 2026 results
• Positive Sentiment: Dividend maintained: The board declared a quarterly dividend of $1.34 per share, payable December 8, reinforcing J&J’s appeal to income-focused investors. Johnson & Johnson Announces Quarterly Dividend
• Positive Sentiment: New long-term clinical data for TREMFYA showed sustained efficacy in Crohn’s disease, supporting the company’s pharmaceutical pipeline and efforts to offset Stelara-related pressure. TREMFYA Crohn’s disease data
• Neutral Sentiment: J&J is leaning toward spinning off its hips-and-knees business, a move that could sharpen the company’s focus but also creates execution and separation risks. J&J hips-and-knees spinoff
• Negative Sentiment: Reported profitability declined: Third-quarter EPS fell from $2.80 a year earlier, with special charges causing a sharp drop in reported profit despite higher sales. Johnson & Johnson Q3 profit report
• Negative Sentiment: MedTech remains a key concern: Surgery revenue declined, with Middle East conflict disrupting medical-device sales. The weakness raises questions about whether a potential spinoff can resolve the segment’s operational problems. Can a Spinoff Fix Johnson & Johnson’s MedTech Problem?

Wall Street Analyst Weigh In

Several brokerages have weighed in on JNJ. Raymond James Financial set a $280.00 price target on shares of Johnson & Johnson in a report on Monday, August 3rd. Johnson Rice reiterated a “buy” rating on shares of Johnson & Johnson in a report on Monday, August 3rd. Weiss Ratings raised Johnson & Johnson from a “buy (b)” rating to a “buy (b+)” rating in a research report on Thursday. Freedom Capital upgraded Johnson & Johnson from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Finally, Morgan Stanley boosted their target price on Johnson & Johnson from $284.00 to $294.00 and gave the stock an “overweight” rating in a research note on Thursday, July 16th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $276.22.

Johnson & Johnson Price Performance

The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.81 and a current ratio of 1.09. The firm has a market cap of $592.71 billion, a price-to-earnings ratio of 28.50, a price-to-earnings-growth ratio of 2.65 and a beta of 0.21. The stock’s 50 day simple moving average is $266.01 and its 200-day simple moving average is $249.31.

Johnson & Johnson (NYSE:JNJ) last posted its quarterly earnings data on Tuesday, October 13th. The company reported $2.59 EPS for the quarter, topping the consensus estimate of $2.53 by $0.06. The business had revenue of $25.40 billion during the quarter, compared to the consensus estimate of $25.38 billion. Johnson & Johnson had a net margin of 21.48% and a return on equity of 32.42%. The business’s revenue for the quarter was up 5.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.80 earnings per share. Equities research analysts anticipate that Johnson & Johnson will post 11.18 EPS for the current fiscal year.

Johnson & Johnson Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Investors of record on Tuesday, August 25th were paid a $1.34 dividend. The ex-dividend date was Tuesday, August 25th. This represents a $5.36 dividend on an annualized basis and a yield of 2.2%. Johnson & Johnson’s dividend payout ratio (DPR) is 62.11%.

Insider Transactions at Johnson & Johnson

In other news, EVP Vanessa Broadhurst sold 23,054 shares of the stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $251.27, for a total value of $5,792,778.58. Following the transaction, the executive vice president directly owned 23,003 shares of the company’s stock, valued at approximately $5,779,963.81. This represents a 50.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Elizabeth Forminard sold 15,918 shares of the firm’s stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $257.00, for a total value of $4,090,926.00. Following the completion of the transaction, the executive vice president owned 16,994 shares of the company’s stock, valued at approximately $4,367,458. The trade was a 48.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 87,569 shares of company stock worth $23,064,544. 0.16% of the stock is owned by insiders.

Hedge Funds Weigh In On Johnson & Johnson

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Fermata Advisors LLC raised its position in Johnson & Johnson by 2.5% during the 3rd quarter. Fermata Advisors LLC now owns 5,522 shares of the company’s stock worth $1,462,000 after buying an additional 134 shares during the last quarter. NorthCrest Asset Manangement LLC boosted its holdings in shares of Johnson & Johnson by 6.5% in the 3rd quarter. NorthCrest Asset Manangement LLC now owns 173,177 shares of the company’s stock valued at $44,416,000 after acquiring an additional 10,574 shares during the last quarter. Vertrix Wealth Management LLC boosted its holdings in shares of Johnson & Johnson by 1.5% in the 3rd quarter. Vertrix Wealth Management LLC now owns 14,714 shares of the company’s stock valued at $3,895,000 after acquiring an additional 222 shares during the last quarter. Sacks & Associates LLC acquired a new stake in shares of Johnson & Johnson in the third quarter worth $279,000. Finally, Roan Capital Partners increased its stake in shares of Johnson & Johnson by 49.1% in the third quarter. Roan Capital Partners now owns 1,281 shares of the company’s stock worth $339,000 after acquiring an additional 422 shares during the period. Institutional investors and hedge funds own 69.55% of the company’s stock.

About Johnson & Johnson

Johnson & Johnson (NYSE: JNJ) is a global healthcare company that develops, manufactures and markets products through two primary business segments: Innovative Medicine and MedTech. Its operations serve patients, healthcare professionals and consumers in markets around the world.

The Innovative Medicine segment focuses on prescription medicines in areas including immunology, oncology, neuroscience, cardiovascular and metabolic disease, infectious diseases, and pulmonary hypertension.