Johnson & Johnson (NYSE:JNJ) Trading Down 3.6% – Here’s Why

Johnson & Johnson (NYSE:JNJ)’s share price fell 3.6% during mid-day trading on Thursday . The company traded as low as $254.56 and last traded at $255.8450. Approximately 8,182,555 shares traded hands during mid-day trading, a decline of 3% from the average daily volume of 8,445,013 shares. The stock had previously closed at $265.53.

Key Headlines Impacting Johnson & Johnson

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

• Positive Sentiment: Biotech expansion strengthens J&J’s long-term pipeline. The company completed its $1 billion cash acquisition of Firefly Bio, adding a degrader antibody conjugate platform focused on difficult-to-treat solid tumors. J&J also agreed to pay Sail Biomedicines $785 million initially for in-vivo CAR-T development, with an exclusive option to acquire Sail for $2.58 billion. The deals could expand its oncology and autoimmune-drug opportunities, although they require significant investment. Firefly acquisition article
• Positive Sentiment: RYBREVANT FASPRO received FDA Priority Review. The review covers a potential first-in-class subcutaneous treatment for advanced head and neck cancer. Clinical data showed a 42% overall response rate, supporting the commercial potential of J&J’s oncology portfolio if approved. RYBREVANT FASPRO FDA review article
• Positive Sentiment: Some earnings expectations improved. Erste Group raised its 2026 EPS estimate to $11.68 from $11.56 and lifted its 2027 estimate to $12.81 from $12.70, reinforcing the view that J&J’s core business remains resilient. J&J earnings estimate article
• Neutral Sentiment: The talc settlement reduces legal uncertainty but remains conditional. J&J proposed a $5.5 billion resolution covering approximately 76,000 ovarian-cancer claims. The agreement requires at least 95% claimant participation, and payments would begin in 2027, leaving execution and liability risks. Reuters talc settlement explainer
• Negative Sentiment: Near-term profit pressure is the main stock headwind. J&J lowered its 2026 profit forecast, citing the combined financial impact of the Firefly acquisition and Sail collaboration. Investors appear to be shifting from relief over the talc agreement to concerns about its $5.5 billion cash commitment and the cost of the new deals, while also taking profits after the recent rally. Reuters profit forecast article

Analysts Set New Price Targets

A number of research firms have weighed in on JNJ. Citigroup upped their price target on Johnson & Johnson from $285.00 to $298.00 and gave the stock a “buy” rating in a research report on Wednesday, July 8th. Raymond James Financial boosted their price objective on shares of Johnson & Johnson from $258.00 to $265.00 and gave the stock an “outperform” rating in a research report on Thursday, July 16th. HSBC set a $290.00 target price on shares of Johnson & Johnson and gave the stock a “buy” rating in a report on Monday, July 6th. Sanford C. Bernstein boosted their price target on shares of Johnson & Johnson from $225.00 to $251.00 and gave the stock a “market perform” rating in a research report on Wednesday, April 15th. Finally, Scotiabank restated an “outperform” rating and set a $305.00 price objective on shares of Johnson & Johnson in a research note on Thursday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Johnson & Johnson presently has a consensus rating of “Moderate Buy” and an average price target of $266.39.

Johnson & Johnson Price Performance

The stock has a market cap of $616.56 billion, a price-to-earnings ratio of 29.65, a price-to-earnings-growth ratio of 2.53 and a beta of 0.24. 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 company has a 50-day simple moving average of $244.93 and a two-hundred day simple moving average of $237.82.

Johnson & Johnson (NYSE:JNJ) last released its quarterly earnings data on Wednesday, July 15th. The company reported $2.90 EPS for the quarter, beating the consensus estimate of $2.84 by $0.06. The company had revenue of $25.31 billion during the quarter, compared to the consensus estimate of $25.06 billion. Johnson & Johnson had a return on equity of 32.42% and a net margin of 21.48%.The firm’s revenue for the quarter was up 6.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.77 EPS. Johnson & Johnson has set its FY 2026 guidance at 11.600-11.750 EPS. As a group, equities research analysts forecast that Johnson & Johnson will post 11.68 EPS for the current year.

Johnson & Johnson Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 8th. Stockholders of record on Tuesday, August 25th will be given a $1.34 dividend. This represents a $5.36 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend is Tuesday, August 25th. Johnson & Johnson’s dividend payout ratio (DPR) is 62.11%.

Insider Activity

In other news, EVP Vanessa Broadhurst sold 23,054 shares of the company’s stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $251.27, for a total value of $5,792,778.58. Following the sale, 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Kathryn E. Wengel sold 10,000 shares of the firm’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $241.15, for a total transaction of $2,411,500.00. Following the completion of the sale, the executive vice president owned 114,288 shares of the company’s stock, valued at $27,560,551.20. This trade represents a 8.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.16% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Silver Coast Investments LLC boosted its position in Johnson & Johnson by 3.8% during the second quarter. Silver Coast Investments LLC now owns 1,066 shares of the company’s stock worth $271,000 after purchasing an additional 39 shares during the period. Townsend Asset Management Corp NC ADV raised its position in shares of Johnson & Johnson by 0.6% in the second quarter. Townsend Asset Management Corp NC ADV now owns 6,418 shares of the company’s stock valued at $1,630,000 after purchasing an additional 39 shares during the period. Sierra Capital LLC lifted its stake in shares of Johnson & Johnson by 0.5% during the 4th quarter. Sierra Capital LLC now owns 8,144 shares of the company’s stock worth $1,685,000 after buying an additional 41 shares during the last quarter. Beaird Harris Wealth Management LLC boosted its holdings in shares of Johnson & Johnson by 1.8% during the 4th quarter. Beaird Harris Wealth Management LLC now owns 2,422 shares of the company’s stock worth $501,000 after buying an additional 42 shares during the period. Finally, Ballast Advisors LLC grew its stake in Johnson & Johnson by 1.2% in the 1st quarter. Ballast Advisors LLC now owns 3,598 shares of the company’s stock valued at $879,000 after buying an additional 42 shares during the last quarter. 69.55% of the stock is owned by institutional investors and hedge funds.

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.