Johnson & Johnson (NYSE:JNJ) Shares Down 2.3% – Should You Sell?

Johnson & Johnson (NYSE:JNJ)’s share price dropped 2.3% during trading on Wednesday . The stock traded as low as $141.44 and last traded at $142.88. Approximately 2,989,596 shares traded hands during trading, a decline of 52% from the average daily volume of 6,198,114 shares. The stock had previously closed at $146.23.

Analyst Upgrades and Downgrades

JNJ has been the subject of a number of recent research reports. Wolfe Research started coverage on Johnson & Johnson in a research report on Friday, November 15th. They issued an “outperform” rating and a $190.00 target price for the company. Citigroup lowered their price objective on shares of Johnson & Johnson from $185.00 to $175.00 and set a “buy” rating for the company in a report on Wednesday, December 11th. Guggenheim lifted their target price on shares of Johnson & Johnson from $156.00 to $162.00 and gave the stock a “neutral” rating in a research report on Wednesday, November 6th. Morgan Stanley upped their price target on shares of Johnson & Johnson from $169.00 to $175.00 and gave the company an “equal weight” rating in a research report on Wednesday, October 16th. Finally, Cantor Fitzgerald reissued an “overweight” rating and issued a $215.00 target price on shares of Johnson & Johnson in a research note on Wednesday, October 16th. Seven research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $174.71.

Johnson & Johnson Price Performance

The stock has a market capitalization of $342.24 billion, a P/E ratio of 20.57, a price-to-earnings-growth ratio of 2.52 and a beta of 0.51. The business’s 50 day moving average price is $150.75 and its 200 day moving average price is $156.23. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.03 and a quick ratio of 0.79.

Johnson & Johnson (NYSE:JNJ) last announced its earnings results on Tuesday, October 15th. The company reported $2.42 earnings per share for the quarter, beating analysts’ consensus estimates of $2.21 by $0.21. The business had revenue of $22.47 billion during the quarter, compared to analyst estimates of $22.17 billion. Johnson & Johnson had a net margin of 19.14% and a return on equity of 35.45%. The company’s quarterly revenue was up 5.2% compared to the same quarter last year. During the same period in the previous year, the business earned $2.66 EPS. Sell-side analysts forecast that Johnson & Johnson will post 9.94 EPS for the current year.

Johnson & Johnson Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 4th. Investors of record on Tuesday, February 18th will be issued a $1.24 dividend. This represents a $4.96 dividend on an annualized basis and a dividend yield of 3.49%. The ex-dividend date of this dividend is Tuesday, February 18th. Johnson & Johnson’s payout ratio is 71.78%.

Insider Activity at Johnson & Johnson

In related news, Director Mark A. Weinberger bought 1,000 shares of the stock in a transaction that occurred on Thursday, December 12th. The shares were bought at an average cost of $147.22 per share, for a total transaction of $147,220.00. Following the completion of the transaction, the director now owns 1,000 shares of the company’s stock, valued at approximately $147,220. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.16% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Highline Wealth Partners LLC bought a new position in shares of Johnson & Johnson in the third quarter worth approximately $31,000. RPg Family Wealth Advisory LLC bought a new position in Johnson & Johnson in the 3rd quarter worth $35,000. Mowery & Schoenfeld Wealth Management LLC increased its stake in Johnson & Johnson by 58.7% in the 3rd quarter. Mowery & Schoenfeld Wealth Management LLC now owns 246 shares of the company’s stock worth $40,000 after buying an additional 91 shares in the last quarter. Activest Wealth Management bought a new stake in Johnson & Johnson during the third quarter valued at about $40,000. Finally, Morton Brown Family Wealth LLC boosted its stake in shares of Johnson & Johnson by 400.0% in the third quarter. Morton Brown Family Wealth LLC now owns 250 shares of the company’s stock worth $41,000 after acquiring an additional 200 shares during the period. 69.55% of the stock is currently owned by institutional investors.

About Johnson & Johnson

Johnson & Johnson, together with its subsidiaries, researches, develops, manufactures, and sells various products in the healthcare field worldwide. The company's Innovative Medicine segment offers products for various therapeutic areas, such as immunology, including rheumatoid arthritis, psoriatic arthritis, inflammatory bowel disease, and psoriasis; infectious diseases comprising HIV/AIDS; neuroscience, consisting of mood disorders, neurodegenerative disorders, and schizophrenia; oncology, such as prostate cancer, hematologic malignancies, lung cancer, and bladder cancer; cardiovascular and metabolism, including thrombosis, diabetes, and macular degeneration; and pulmonary hypertension comprising pulmonary arterial hypertension through retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use.