Johnson & Johnson (NYSE:JNJ) Trading Down 2% – Should You Sell?

Johnson & Johnson (NYSE:JNJ) shares traded down 2% during trading on Thursday . The stock traded as low as $267.37 and last traded at $268.06. 6,451,552 shares changed hands during trading, a decline of 22% from the average session volume of 8,271,416 shares. The stock had previously closed at $273.41.

Johnson & Johnson News Roundup

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

• Positive Sentiment: AI upgrade expands J&J’s MedTech opportunity. The FDA cleared MONARCH QUEST 3 software, adding artificial intelligence, 3D imaging and navigation features to J&J’s robotic bronchoscopy platform. The update could improve lung-diagnostic accuracy, support physician adoption and strengthen the company’s position in robotic procedures. Johnson & Johnson expands robotic bronchoscopy push
• Positive Sentiment: New medicines may offset patent losses. Investors are focusing on J&J’s newer immunology and neuroscience drugs as potential growth drivers capable of replacing revenue lost when older products, including Stelara, face patent-protection erosion. Johnson & Johnson’s message about its future
• Positive Sentiment: Fundamentals and analyst sentiment remain supportive. Second-quarter revenue increased 6.6% to $25.31 billion, while adjusted EPS of $2.90 exceeded expectations. J&J also raised its 2026 outlook, and analysts continue to rate the shares favorably ahead of third-quarter earnings. Johnson & Johnson stock and healthcare rotation
• Positive Sentiment: Dividend appeal remains intact. J&J raised its quarterly dividend to $1.34, marking its 64th consecutive year of increases. The dependable income stream may help support demand from defensive and income-oriented investors. Johnson & Johnson’s dividend outlook
• Neutral Sentiment: J&J is reportedly among the companies monitoring Seaport Therapeutics after its IPO. Any future partnership or acquisition could add neuroscience capabilities, but no transaction has been announced. Why J&J is watching Seaport Therapeutics
• Negative Sentiment: Insider selling and elevated valuation may be weighing on sentiment. EVP Jennifer Taubert sold 15,000 shares for about $3.95 million. Separately, J&J’s recent climb near its 52-week high leaves less room for disappointment, particularly as investors assess future patent expirations and the stock’s premium earnings multiple. J&J executive share sale

Analysts Set New Price Targets

Several research firms have issued reports on JNJ. Morgan Stanley upped their price objective on Johnson & Johnson from $284.00 to $294.00 and gave the stock an “overweight” rating in a report on Thursday, July 16th. HSBC set a $290.00 target price on Johnson & Johnson and gave the stock a “buy” rating in a research report on Monday, July 6th. Royal Bank Of Canada upped their price target on Johnson & Johnson from $265.00 to $287.00 and gave the company an “outperform” rating in a research note on Monday, July 13th. Wells Fargo & Company lifted their price objective on Johnson & Johnson from $272.00 to $282.00 and gave the stock an “overweight” rating in a research report on Monday, August 3rd. Finally, Weiss Ratings raised Johnson & Johnson from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $268.22.

Johnson & Johnson Stock Down 2.0%

The firm has a market cap of $646.00 billion, a P/E ratio of 31.06, a price-to-earnings-growth ratio of 2.59 and a beta of 0.24. The firm’s 50 day moving average is $253.89 and its two-hundred day moving average is $242.23. The company has a current ratio of 1.09, a quick ratio of 0.81 and a debt-to-equity ratio of 0.44.

Johnson & Johnson (NYSE:JNJ) last posted its earnings results on Wednesday, July 15th. The company reported $2.90 earnings per share for the quarter, topping the consensus estimate of $2.84 by $0.06. Johnson & Johnson had a net margin of 21.48% and a return on equity of 32.42%. The company had revenue of $25.31 billion for the quarter, compared to analyst estimates of $25.06 billion. During the same period last year, the business posted $2.77 earnings per share. The business’s revenue for the quarter was up 6.6% compared to the same quarter last year. Johnson & Johnson has set its FY 2026 guidance at 11.600-11.750 EPS. As a group, research analysts anticipate that Johnson & Johnson will post 11.61 EPS for the current fiscal year.

Johnson & Johnson Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Tuesday, August 25th will be issued a dividend of $1.34 per share. The ex-dividend date is Tuesday, August 25th. This represents a $5.36 annualized dividend and a yield of 2.0%. Johnson & Johnson’s payout ratio is currently 62.11%.

Insiders Place Their Bets

In other Johnson & Johnson 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 completion of the sale, the executive vice president directly owned 23,003 shares in the company, valued at $5,779,963.81. This represents a 50.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available 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 sale, the executive vice president directly owned 16,994 shares in the company, valued at approximately $4,367,458. This represents a 48.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 63,972 shares of company stock valued at $16,245,605 in the last three months. Insiders own 0.16% of the company’s stock.

Institutional Investors Weigh In On Johnson & Johnson

Large investors have recently made changes to their positions in the stock. Blueline Advisors LLC acquired a new position in shares of Johnson & Johnson during the fourth quarter worth about $25,000. Cresta Advisors Ltd. acquired a new position in Johnson & Johnson during the 4th quarter worth approximately $26,000. DecisionPoint Financial LLC raised its holdings in shares of Johnson & Johnson by 104.2% in the fourth 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. Bay Harbor Wealth Management LLC lifted its position in shares of Johnson & Johnson by 49.0% in the fourth quarter. Bay Harbor Wealth Management LLC now owns 149 shares of the company’s stock worth $31,000 after purchasing an additional 49 shares in the last quarter. Finally, Semmax Financial Advisors Inc. boosted its holdings in Johnson & Johnson by 55.0% during the second quarter. Semmax Financial Advisors Inc. now owns 203 shares of the company’s stock worth $31,000 after purchasing an additional 72 shares during the last quarter. Institutional investors own 69.55% of the company’s stock.

About Johnson & Johnson

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.