Johnson & Johnson (JNJ) – Research Analysts’ Weekly Ratings Changes

A number of firms have modified their ratings and price targets on shares of Johnson & Johnson (NYSE: JNJ) recently:

  • 1/8/2019 – Johnson & Johnson was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “J&J’s Pharma unit is performing better than the market in 2018 while the Medical Devices and Consumer units are seeing improving organic growth trends. However, headwinds like generics competition, pricing pressure and soft global market conditions remain. Quite a few products in the company’s portfolio are facing generic competition. Procrit and Tracleer are expected to face generic competition in the United States soon. Meanwhile, J&J has got unfavorable ruling in district court cases related to generic versions of Zytiga, opening doors for an earlier-than-expected generic launch. Also, allegations that its talc/baby powders contain asbestos which causes the users to develop ovarian cancer have been an overhang on the stock’s price lately. Shares have underperformed the market in the past one year. Estimates have slightly declined ahead of Q4 results. J&J has a positive record of earnings surprises in the recent quarters”
  • 1/2/2019 – Johnson & Johnson had its price target lowered by analysts at Citigroup Inc from $148.00 to $139.00. They now have a “neutral” rating on the stock.
  • 1/2/2019 – Johnson & Johnson had its price target lowered by analysts at Morgan Stanley from $153.00 to $130.00. They now have an “equal weight” rating on the stock.
  • 12/31/2018 – Johnson & Johnson had its “sell” rating reaffirmed by analysts at Zacks Investment Research. According to Zacks, “J&J’s Pharma segment is performing better than the market in 2018 while the Medical Devices and Consumer units are seeing improving organic growth trends. However, headwinds like generics competition, pricing pressure and soft global market conditions remain. Quite a few products in the company’s portfolio are facing generic competition. Moreover, biosimilar competition is hurting sales of blockbuster drug, Remicade. Procrit and Tracleer are expected to face generic competition in the United States soon. Meanwhile, J&J has got unfavorable ruling in district court cases related to generic versions of blockbuster drug Zytiga, opening doors for an earlier-than-expected generic launch in 2018/early 2019. Meanwhile, allegations that its talc/baby powders contain asbestos which causes the users to develop ovarian cancer have been an overhang on the stock’s price lately.  Shares have underperformed the market this year so far.”
  • 12/20/2018 – Johnson & Johnson was given a new $140.00 price target on by analysts at Morgan Stanley. They now have a “hold” rating on the stock.
  • 12/18/2018 – Johnson & Johnson was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “sell” rating. According to Zacks, “J&J’s Pharma segment is performing better than the market in 2018 while the Medical Devices and Consumer units are seeing improving organic growth trends. However, headwinds like generics competition, pricing pressure and soft global market conditions remain. Quite a few products in the company’s portfolio are facing generic competition. Moreover, biosimilar competition is hurting sales of blockbuster drug, Remicade. Procrit and Tracleer are expected to face generic competition in the United States soon. Meanwhile, J&J has got unfavorable ruling in district court cases related to generic versions of blockbuster drug Zytiga, opening doors for an earlier-than-expected generic launch in 2018/early 2019. Meanwhile, allegations that its talc/baby powders contain asbestos which causes the users to develop ovarian cancer have been an overhang on the stock’s price lately.  Shares have underperformed the market this year so far.”
  • 12/13/2018 – Johnson & Johnson was upgraded by analysts at ValuEngine from a “hold” rating to a “buy” rating.
  • 12/12/2018 – Johnson & Johnson was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $164.00 price target on the stock. According to Zacks, “J&J’s Pharma segment is performing better than the market in 2018 despite the impact of biosimilars on Remicade sales. Also, the Medical Devices and Consumer units are seeing improving organic growth trends. J&J has raised its full-year organic sales growth outlook thrice this year. Though quite a few key products in J&J’s portfolio like Remicade and Concerta are facing generic competition, we believe that new products in all segments, successful label expansion of cancer drugs like Imbruvica and Darzalex and contribution from recent acquisitions will continue to drive top-line growth. J&J enjoys a robust multi-year pipeline of new drugs and line extensions. Meanwhile, share buybacks and restructuring initiatives should provide bottom-line support. J&J’s shares have outperformed the industry in the past six months. Headwinds like generics, pricing pressure and soft global market conditions remain.”
  • 12/11/2018 – Johnson & Johnson was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “J&J’s Pharma segment is performing better than the market in 2018 despite the impact of biosimilars on Remicade sales. Also, the Medical Devices and Consumer units are seeing improving organic growth trends. J&J has raised its full-year organic sales growth outlook thrice this year. Though quite a few key products in J&J’s portfolio like Remicade and Concerta are facing generic competition, we believe that new products in all segments, successful label expansion of cancer drugs like Imbruvica and Darzalex and contribution from recent acquisitions will continue to drive top-line growth. J&J enjoys a robust multi-year pipeline of new drugs and line extensions. Meanwhile, share buybacks and restructuring initiatives should provide bottom-line support. J&J’s shares have outperformed the industry in the past six months. Headwinds like generics, pricing pressure and soft global market conditions remain.”
  • 12/5/2018 – Johnson & Johnson was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $164.00 price target on the stock. According to Zacks, “J&J’s Pharma segment is performing better than the market in 2018 despite the impact of biosimilars on Remicade sales. Also, the Medical Devices and Consumer units are seeing improving organic growth trends. J&J has raised its full-year organic sales growth outlook thrice this year. Though quite a few key products in J&J’s portfolio like Remicade and Concerta are facing generic competition, we believe that new products in all segments, successful label expansion of cancer drugs like Imbruvica and Darzalex and contribution from recent acquisitions will continue to drive top-line growth. J&J enjoys a robust multi-year pipeline of new drugs and line extensions. Meanwhile, share buybacks and restructuring initiatives should provide bottom-line support. J&J’s shares have outperformed the industry in the past six months. Headwinds like generics, pricing pressure and soft global market conditions remain.”
  • 12/4/2018 – Johnson & Johnson was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “J&J’s Pharma segment is performing better than the market in 2018 despite the impact of biosimilars on Remicade sales. Also, the Medical Devices and Consumer units are seeing improving organic growth trends. J&J has raised its full-year organic sales growth outlook thrice this year. Though quite a few key products in J&J’s portfolio like Remicade and Concerta are facing generic competition, we believe that new products in all segments, successful label expansion of cancer drugs like Imbruvica and Darzalex and contribution from recent acquisitions will continue to drive top-line growth. J&J enjoys a robust multi-year pipeline of new drugs and line extensions. Meanwhile, share buybacks and restructuring initiatives should provide bottom-line support. J&J’s shares have outperformed the industry in the past six months. Headwinds like generics, pricing pressure and soft global market conditions remain.”
  • 11/28/2018 – Johnson & Johnson was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $158.00 price target on the stock. According to Zacks, “J&J’s Pharma segment is performing better than the market in 2018 despite the impact of biosimilars on Remicade sales. Also, the Medical Devices and Consumer units are seeing improving organic growth trends. J&J has raised its full-year organic sales growth outlook thrice this year. Though quite a few key products in J&J’s portfolio like Remicade and Concerta are facing generic competition, we believe that new products in all segments, successful label expansion of cancer drugs like Imbruvica and Darzalex and contribution from recent acquisitions will continue to drive top-line growth. J&J enjoys a robust multi-year pipeline of new drugs and line extensions. Meanwhile, share buybacks and restructuring initiatives should provide bottom-line support. J&J’s shares have outperformed the industry in the past six months. Headwinds like generics, pricing pressure and soft global market conditions remain.”
  • 11/27/2018 – Johnson & Johnson was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “J&J’s Pharma segment is performing better than the market in 2018 despite the impact of biosimilars on Remicade sales. Also, the Medical Devices and Consumer units are seeing improving organic growth trends. J&J has raised its full-year organic sales growth outlook thrice this year. Though quite a few key products in J&J’s portfolio like Remicade and Concerta are facing generic competition, we believe that new products in all segments, successful label expansion of cancer drugs like Imbruvica and Darzalex and contribution from recent acquisitions will continue to drive top-line growth. J&J enjoys a robust multi-year pipeline of new drugs and line extensions. Meanwhile, share buybacks and restructuring initiatives should provide bottom-line support. J&J’s shares have outperformed the industry in the past six months. Headwinds like generics, pricing pressure and soft global market conditions remain.”
  • 11/20/2018 – Johnson & Johnson was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $165.00 price target on the stock. According to Zacks, “J&J’s Pharma segment is performing better than the market in 2018 despite the impact of biosimilars on Remicade sales. Also, the Medical Devices and Consumer units are seeing improving organic growth trends.J&J has raised its full-year organic sales growth outlook thrice this year. Though quite a few key products in J&J’s portfolio like Remicade and Concerta are facing generic competition, we believe that new products in all segments, successful label expansion of cancer drugs like Imbruvica and Darzalex and contribution from recent acquisitions will continue to drive top-line growth. J&J enjoys a robust multi-year pipeline of new drugs and line extensions. Meanwhile, share buybacks and restructuring initiatives should provide bottom-line support. J&J’s shares have outperformed the industry in the past six months. Headwinds like generics, pricing pressure and soft global market conditions remain.”
  • 11/16/2018 – Johnson & Johnson was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “J&J’s Pharma segment is performing better than the market in 2018 despite the impact of biosimilars on Remicade sales. Also, the Medical Devices and Consumer units are seeing improving organic growth trends.J&J has raised its full-year organic sales growth outlook thrice this year. Though quite a few key products in J&J’s portfolio like Remicade and Concerta are facing generic competition, we believe that new products in all segments, successful label expansion of cancer drugs like Imbruvica and Darzalex and contribution from recent acquisitions will continue to drive top-line growth. J&J enjoys a robust multi-year pipeline of new drugs and line extensions. Meanwhile, share buybacks and restructuring initiatives should provide bottom-line support. J&J’s shares have outperformed the industry in the past six months. Headwinds like generics, pricing pressure and soft global market conditions remain.”

Shares of JNJ stock opened at $129.75 on Monday. The firm has a market capitalization of $345.91 billion, a price-to-earnings ratio of 17.77, a price-to-earnings-growth ratio of 1.90 and a beta of 0.72. Johnson & Johnson has a fifty-two week low of $118.62 and a fifty-two week high of $148.99. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.40 and a current ratio of 1.72.

Johnson & Johnson (NYSE:JNJ) last issued its earnings results on Tuesday, October 16th. The company reported $2.05 earnings per share for the quarter, beating the Zacks’ consensus estimate of $2.03 by $0.02. The firm had revenue of $20.35 billion for the quarter, compared to the consensus estimate of $20.05 billion. Johnson & Johnson had a return on equity of 34.62% and a net margin of 1.89%. The company’s revenue was up 3.6% compared to the same quarter last year. During the same quarter last year, the business posted $1.90 EPS. On average, analysts forecast that Johnson & Johnson will post 8.16 earnings per share for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 12th. Investors of record on Tuesday, February 26th will be issued a dividend of $0.90 per share. This represents a $3.60 annualized dividend and a dividend yield of 2.77%. The ex-dividend date is Monday, February 25th. Johnson & Johnson’s dividend payout ratio (DPR) is 49.32%.

In related news, CEO Alex Gorsky sold 264,465 shares of the firm’s stock in a transaction on Friday, November 16th. The stock was sold at an average price of $145.96, for a total transaction of $38,601,311.40. Following the sale, the chief executive officer now owns 481,254 shares of the company’s stock, valued at approximately $70,243,833.84. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Charles Prince acquired 2,000 shares of the business’s stock in a transaction that occurred on Friday, December 14th. The shares were purchased at an average cost of $134.37 per share, for a total transaction of $268,740.00. Following the acquisition, the director now owns 28,520 shares in the company, valued at $3,832,232.40. The disclosure for this purchase can be found here. In the last three months, insiders have sold 514,187 shares of company stock worth $74,951,528. 0.22% of the stock is currently owned by company insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Raymond James Financial Services Advisors Inc. raised its position in Johnson & Johnson by 3.5% during the 2nd quarter. Raymond James Financial Services Advisors Inc. now owns 1,123,184 shares of the company’s stock worth $136,289,000 after purchasing an additional 38,285 shares during the last quarter. Fundsmith Equity Fund L.P. bought a new position in Johnson & Johnson during the 2nd quarter worth $552,762,000. Sather Financial Group Inc raised its position in Johnson & Johnson by 3.7% during the 2nd quarter. Sather Financial Group Inc now owns 11,051 shares of the company’s stock worth $1,341,000 after purchasing an additional 399 shares during the last quarter. Peoples Financial Services CORP. raised its position in Johnson & Johnson by 20.4% during the 3rd quarter. Peoples Financial Services CORP. now owns 30,668 shares of the company’s stock worth $4,237,000 after purchasing an additional 5,190 shares during the last quarter. Finally, Foundation Resource Management Inc. bought a new position in Johnson & Johnson during the 3rd quarter worth $208,000. 66.23% of the stock is currently owned by institutional investors.

Johnson & Johnson is a holding company, which engages in the research and development, manufacture and sale of products in the health care field. It operates through the following segments: Consumer, Pharmaceutical, and Medical Devices. The Consumer segment includes products used in the baby care, oral care, beauty, over-the-counter pharmaceutical, women’s health, and wound care markets.

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