Market Analysts see Johnson & Johnson [JNJ] falling to $160. Time to buy?

Johnson & Johnson [NYSE: JNJ] gained 1.15% or 1.58 points to close at $138.69 with a heavy trading volume of 7082005 shares. The company report on October 22, 2020 that Johnson & Johnson Announces Quarterly Dividend for Fourth Quarter 2020.

Johnson & Johnson (NYSE: JNJ) today announced that its Board of Directors has declared a cash dividend for the fourth quarter of 2020 of $1.01 per share on the company’s common stock. The dividend is payable on December 8, 2020 to shareholders of record at the close of business on November 24, 2020. The ex-dividend date is November 23, 2020.

About Johnson & Johnson.

It opened the trading session at $138.98, the shares rose to $139.01 and dropped to $137.49, the range by which the price of stock traded the whole day. The daily chart for JNJ points out that the company has recorded -7.23% loss over the past six months. However, it is still -27.05% lower than its most recent low trading price.

If we look at the average trading volume of 6.07M shares, JNJ reached to a volume of 7082005 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Johnson & Johnson [JNJ]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for JNJ shares is $166.18 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on JNJ stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

UBS have made an estimate for Johnson & Johnson shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on April 28, 2020. While these analysts kept the previous recommendation, BofA/Merrill raised their target price from $150 to $175. The new note on the price target was released on April 22, 2020, representing the official price target for Johnson & Johnson stock. Previously, the target price had yet another raise to $163, while Citigroup analysts kept a Buy rating on JNJ stock.

The Average True Range (ATR) for Johnson & Johnson is set at 2.59, with the Price to Sales ratio for JNJ stock in the period of the last 12 months amounting to 4.52. The Price to Book ratio for the last quarter was 5.66, with the Price to Cash per share for the same quarter was set at 11.69. Price to Free Cash Flow for JNJ in the course of the last twelve months was 45.76 with Quick ratio for the last quarter at 1.20.

Trading performance analysis for JNJ stock

Johnson & Johnson [JNJ] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -3.67. With this latest performance, JNJ shares dropped by -5.16% in over the last four-week period, additionally sinking by -7.23% over the last 6 months – not to mention a rise of 5.71% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for JNJ stock in for the last two-week period is set at 33.93, with the RSI for the last a single of trading hit 31.02, and the three-weeks RSI is set at 37.20 for Johnson & Johnson [JNJ]. The present Moving Average for the last 50 days of trading for this stock 147.24, while it was recorded at 138.90 for the last single week of trading, and 145.18 for the last 200 days.

Johnson & Johnson [JNJ]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Johnson & Johnson [JNJ] shares currently have an operating margin of +26.24 and a Gross Margin at +66.95. Johnson & Johnson’s Net Margin is presently recorded at +18.41.

Return on Total Capital for JNJ is now 24.16, given the latest momentum, and Return on Invested Capital for the company is 17.37. Return on Equity for this stock inclined to 25.36, with Return on Assets sitting at 9.73. When it comes to the capital structure of this company, Johnson & Johnson [JNJ] has a Total Debt to Total Equity ratio set at 48.23. Additionally, JNJ Total Debt to Total Capital is recorded at 32.54, with Total Debt to Total Assets ending up at 18.18. Long-Term Debt to Equity for the company is recorded at 45.75, with the Long-Term Debt to Total Capital now at 30.87.

Reflecting on the efficiency of the workforce at the company, Johnson & Johnson [JNJ] managed to generate an average of $114,365 per employee. Receivables Turnover for the company is 5.75 with a Total Asset Turnover recorded at a value of 0.53.Johnson & Johnson’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.50.

Johnson & Johnson [JNJ]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Johnson & Johnson posted 1.88/share EPS, while the average EPS was predicted by analysts to be reported at 1.87/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 0.50%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for JNJ. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Johnson & Johnson go to 4.33%.

An analysis of insider ownership at Johnson & Johnson [JNJ]

There are presently around $249,034 million, or 70.10% of JNJ stock, in the hands of institutional investors. The top three institutional holders of JNJ stocks are: VANGUARD GROUP INC with ownership of 231,747,508, which is approximately -0.885% of the company’s market cap and around 0.08% of the total institutional ownership; BLACKROCK INC., holding 193,714,044 shares of the stock with an approximate value of $26.56 billion in JNJ stocks shares; and STATE STREET CORP, currently with $20.92 billion in JNJ stock with ownership of nearly 0.675% of the company’s market capitalization.

Positions in Johnson & Johnson stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 1,452 institutional holders increased their position in Johnson & Johnson [NYSE:JNJ] by around 49,697,010 shares. Additionally, 1,315 investors decreased positions by around 66,821,393 shares, while 284 investors held positions by with 1,699,787,025 shares. The mentioned changes placed institutional holdings at 1,816,305,428 shares, according to the latest SEC report filing. JNJ stock had 137 new institutional investments in for a total of 4,589,416 shares, while 65 institutional investors sold positions of 4,880,115 shares during the same period.

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