Johnson & Johnson (JNJ) Lifted to “Buy” at Zacks Investment Research

Johnson & Johnson (NYSE:JNJ) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Wednesday. The brokerage currently has a $164.00 price objective on the stock. Zacks Investment Research‘s price target would suggest a potential upside of 12.40% from the company’s previous close.

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.”

Several other analysts also recently issued reports on the stock. Wells Fargo & Co reissued an “outperform” rating and set a $160.00 target price on shares of Johnson & Johnson in a research note on Friday, September 14th. Credit Suisse Group set a $149.00 target price on shares of Johnson & Johnson and gave the company a “buy” rating in a research note on Sunday, October 14th. HC Wainwright reissued a “buy” rating on shares of Johnson & Johnson in a research note on Wednesday, October 17th. Raymond James boosted their target price on shares of Johnson & Johnson from $144.00 to $149.00 and gave the company an “outperform” rating in a research note on Wednesday, October 17th. Finally, Citigroup boosted their target price on shares of Johnson & Johnson from $137.00 to $148.00 and gave the company a “neutral” rating in a research note on Monday, October 22nd. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and ten have issued a buy rating to the stock. The stock has an average rating of “Hold” and a consensus price target of $143.90.

NYSE JNJ opened at $145.91 on Wednesday. The firm has a market capitalization of $391.78 billion, a price-to-earnings ratio of 19.99, a P/E/G ratio of 2.28 and a beta of 0.59. Johnson & Johnson has a 1 year low of $118.62 and a 1 year high of $148.99. The company has a current ratio of 1.72, a quick ratio of 1.40 and a debt-to-equity ratio of 0.46.

Johnson & Johnson (NYSE:JNJ) last posted its quarterly earnings results on Tuesday, October 16th. The company reported $2.05 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $2.03 by $0.02. The company had revenue of $20.35 billion for the quarter, compared to analysts’ expectations of $20.05 billion. Johnson & Johnson had a return on equity of 34.62% and a net margin of 1.89%. The firm’s revenue was up 3.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.90 earnings per share. As a group, analysts anticipate that Johnson & Johnson will post 8.16 EPS for the current year.

In other news, insider Joaquin Duato sold 40,000 shares of the business’s stock in a transaction on Wednesday, November 7th. The shares were sold at an average price of $144.36, for a total transaction of $5,774,400.00. Following the transaction, the insider now directly owns 112,848 shares in the company, valued at approximately $16,290,737.28. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CAO Ronald A. Kapusta sold 8,441 shares of the business’s stock in a transaction on Thursday, November 8th. The shares were sold at an average price of $145.15, for a total transaction of $1,225,211.15. Following the transaction, the chief accounting officer now owns 17,284 shares in the company, valued at $2,508,772.60. The disclosure for this sale can be found here. Over the last three months, insiders have sold 510,544 shares of company stock worth $74,414,877. Company insiders own 0.22% of the company’s stock.

Institutional investors have recently bought and sold shares of the company. Selective Wealth Management bought a new stake in Johnson & Johnson in the third quarter worth $105,000. Financial Gravity Wealth Inc. bought a new stake in Johnson & Johnson in the first quarter worth $105,000. WP Advisors LLC bought a new stake in Johnson & Johnson in the second quarter worth $108,000. FNY Investment Advisers LLC bought a new stake in Johnson & Johnson in the second quarter worth $117,000. Finally, Fusion Family Wealth LLC boosted its holdings in Johnson & Johnson by 621.4% in the second quarter. Fusion Family Wealth LLC now owns 1,010 shares of the company’s stock worth $123,000 after purchasing an additional 870 shares in the last quarter. Institutional investors and hedge funds own 66.51% of the company’s stock.

Johnson & Johnson Company Profile

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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