Daiwa Securities has recently reduced Johnson & Johnson (JNJ) stock to Neutral rating, as announced on July 23, 2024, according to Finviz. Earlier, on May 30, 2024, Goldman had resumed the stock to Neutral, setting a price target of $160. HSBC Securities also raised Buy rating with a price target of $170. Additionally, Wells Fargo reduced Equal Weight rating on December 13, 2023, with a target price of $163. UBS analysts, in their report published on December 1, 2023, also raised Buy rating and set a price target of $167 for Johnson & Johnson’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Johnson & Johnson (JNJ) Stock Trading Recap
On Tuesday, Johnson & Johnson (JNJ) stock saw a modest uptick, ending the day at $163.45 which represents a slight increase of $0.62 or 0.38% from the prior close of $162.83. The stock opened at $162.32 and touched a low of $161.9 during the day, reaching a high of $163.73. The volume of shares traded was 5.68 million falling short of the average volume of 6.37 million.
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JNJ Stock Performance and Moving Averages
In recent trading, Johnson & Johnson (JNJ) stock price has shown some volatility, fluctuating -0.40% over the last five trades and 0.14% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 9.29%, and it has gained 4.59% in the previous three months. Currently, JNJ is trading at 0.99%, 0.28%, and 4.69% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, JNJ, a Healthcare sector stock, is trading -3.20% below its 52-week high but remains 14.20% above its 52-week low. The Average True Range (ATR) (14 days) of 2.16 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Johnson & Johnson’s Profitability and Valuation Ratios
Johnson & Johnson’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 24.56% and a profit margin of 16.74%, with a gross margin of 9.29%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Johnson & Johnson’s market capitalization stands at $393.46 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 27.02, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 15.39. Additionally, the Price-to-Sales Ratio is 4.49, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 5.5, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.12% of Johnson & Johnson (JNJ)’s shares, while financial institutions hold 72.42%.
Notable insider trades include Decker Robert J, VP Corporate Controller at Johnson & Johnson (JNJ), who sold 5635 shares on Aug 30 ’24, at $165.06 each, totaling $0.93 million. On Mar 13 ’24, Broadhurst Vanessa, EVP, Global Corp Affairs, sold 8891 shares for $162.16 each, amounting to $1.44 million. Additionally, on Feb 09 ’24, Taubert Jennifer L sold 59397 shares at $156.27 each, generating $9.28 million.
