Johnson & Johnson (NYSE: JNJ) has seen its price target increased significantly from $230.00 to $265.00 by Scotiabank, according to a research note released on Thursday. The brokerage maintains a sector outperform rating on the stock, indicating a positive outlook for the healthcare giant.
Other financial institutions have also recently assessed Johnson & Johnson’s stock. On October 31, 2023, Weiss Ratings reaffirmed a “buy (b)” rating for the company. Earlier, on October 22, Johnson Rice set a price objective of $190.00 while assigning a “hold” rating. Wolfe Research escalated its target from $225.00 to $240.00, supporting an “outperform” rating in a report dated January 5, 2023. Meanwhile, the Royal Bank of Canada and HSBC both reiterated their “buy” ratings with price targets of $240.00 in December 2023.
Currently, one analyst has rated Johnson & Johnson with a Strong Buy, while sixteen analysts have assigned a Buy rating, and nine have opted for Hold. As per data from MarketBeat.com, the consensus rating stands at “Moderate Buy” with an average price target of $226.18.
Quarterly Performance and Dividend Announcement
Johnson & Johnson reported its quarterly earnings on January 21, 2024, revealing earnings per share (EPS) of $2.46, which met analysts’ expectations. The company achieved a net margin of 28.46% and a return on equity of 33.34%. Revenue for the quarter reached $24.56 billion, surpassing the consensus estimate of $24.14 billion, marking a 9.1% increase from the same period last year.
Looking ahead, Johnson & Johnson has set its fiscal year 2026 guidance at an EPS range of $11.430 to $11.630. Analysts predict an EPS of 10.58 for the current fiscal year, reflecting optimistic growth trends.
In addition to its strong financial performance, the company declared a quarterly dividend of $1.30 per share, scheduled for payment on March 10, 2024. Shareholders of record as of February 24, 2024, will receive this dividend, which represents an annualized amount of $5.20 and a yield of 2.4%. The firm currently has a dividend payout ratio of 47.06%.
Institutional Investor Activity
Several institutional investors and hedge funds have recently adjusted their positions in Johnson & Johnson. Brighton Jones LLC increased its stake by 13.9% in the fourth quarter, holding 51,876 shares valued at approximately $7.5 million after acquiring an additional 6,332 shares.
United Bank significantly lifted its position by 110.7% during the first quarter, now owning 9,279 shares worth around $1.54 million. Sivia Capital Partners LLC also expanded its holdings by 13.4% in the second quarter, bringing its total to 5,863 shares valued at $896,000.
Maseco LLP entered the market with a new stake valued at approximately $478,000, while Accurate Wealth Management LLC raised its stake by 4.9%, now owning 25,576 shares worth about $4.03 million. Overall, institutional investors hold approximately 69.55% of Johnson & Johnson’s stock.
Company Overview and Market Position
Based in New Brunswick, New Jersey, Johnson & Johnson operates as a global healthcare company that develops, manufactures, and markets a wide variety of products across pharmaceuticals, medical devices, and previously consumer health sectors. Founded in 1886 by the Johnson family, the organization has established a significant international presence, with operations in numerous countries.
The pharmaceuticals segment, primarily under its Janssen research and development organization, focuses on various therapeutic areas, including immunology, infectious diseases, oncology, and neuroscience.
As Johnson & Johnson continues to navigate a competitive landscape, its recent financial performance and strategic analyst ratings suggest a robust outlook for the company moving forward.
