Johnson & Johnson (JNJ) This Week, Explained By The Analyst Ratings

Analysts at Goldman upped their rating on shares of Johnson & Johnson (NYSE:JNJ) from Sell to Neutral in their opinion released on July 12. Analysts at Citigroup are sticking to their Neutral recommendation. However, on April 23, they lifted target price for these shares to $134 from $146. Analysts at Citigroup, made their first call for the stock with a Neutral rating, according to a research note that dated back to April 23.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Johnson & Johnson (NYSE:JNJ)’s prospects. The earliest insider trade took place on 12/04/2018. Fasolo Peter parted with a total of 166.7 thousand shares of company at average share price of $146.41. The total for the sales was set at $24.41 million. After this transaction, the Exec VP, Chief HR Officer account balance stood at 78.33 thousand shares. The stock lost -0.34 percent since that insider sale. On 11/23/2018, Sneed Michael E, EVP, Global Corp Aff & COO, sold 30.94 thousand shares at a price per share of $142.46. This removed 4.41 million shares from the insider’s fortune and the stock saw a 2.42 percent rally in value since the news became public. This transaction left 43.44 thousand shares in the EVP, Global Corp Aff & COO account. On 11/16/2018, Chairman, CEO Gorsky Alex performed a sale transaction worth $38.6 million. This sale at $145.96 each has eliminated 264.47 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -0.03 percent decrease since the transaction was reported. The insider now is left with 338.13 thousand shares remaining in the account. Kapusta Ronald A, who performs the Controller, CAO job, sold 8.44 thousand shares for $1.23 million. The disposal occurred on 11/08/2018 was priced at $145.15 per share. The share price soared 0.52 percent since the reporting date. Kapusta Ronald A now left with a stake of 18.04 thousand JNJ stock worth $2.63 million after the insider selling.

Johnson & Johnson (JNJ) is expected to jump by 1.51 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $160-month high price target. This represents a whopping 9.66 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $149.5, which represents a return potential of 2.46 percent when compared to the closing price of the stock of $145.91 on Thursday, December 06. The lowest price target for the stock is $116 — slightly more than -20.5 percent from JNJ’s current share price.

The shares are currently floating around the first support level of $143.65. Below this, the next support is placed in the zone of $141.39. Till the time, the JNJ stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 56.85 on daily chart, which may remain a cause for concern. If the price breaks below $141.39 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $147.31 mark may result into a pull-back move towards $148.71 level.

JNJ shares dropped -0.12 points or -0.08 percent on Thursday to $145.91 with a heavy trade volume of 11.228 million shares. After opening the session at $144.5, the shares went as high as $146.45 and as low as $142.79, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $392 billion and now has 2.68 billion shares outstanding. Johnson & Johnson (JNJ) stock has gained 2.61 percent of market value in 21 trading days.

JNJ stock has a trailing 3-year beta of 0.57, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $5.55 a share in the trailing twelve months. The stock’s value has surged 4.43 percent year to date (YTD) against a rise of 4.47 percent in 12 month’s time. The company’s shares still trade -2.07 percent away from its 1-year high of $148.99 and 23.01 percent up from 52-week low of $118.62. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Johnson & Johnson (JNJ) are trading at a P/E ratio of 22.53 times earnings reported for the past 12 months. The industry JNJ operates in has an average P/E of 31.13. Its P/E ratio went as low as 18.01X and as high as 19.43 over the 5-year span. Further, it is sporting a 4.81 on the Price-to-Sales ratio. Compare this with the industry average P/S of 4. 66.5 percent is the gross profit margin for Johnson & Johnson and operating margin sits at 21.4 percent. Along with this, the net profit margin is 1.9 percent.

JNJ will be showing off its Q4 earnings on January 22. Analysts are forecasting revenue to climb 0.1 percent to $20.2B in the next fiscal quarter, while earnings are seen soaring by nearly 12.07 percent to $1.95 per share. History has shown that shares in Johnson & Johnson have gone down on 19 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. In last reported earnings results, it earned $2.05 per share, better than the $2.03, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $20.3B, better than the $20.1B analysts expected. Earnings are estimated to increase by -8.5 percent this year, 5.63 percent next year and continue to increase by 7.77 percent annually for the next 5 years.