why Johnson & Johnson [JNJ] is a Good Choice for Investors After New Price Target of $187.76


Johnson & Johnson [NYSE: JNJ] gained 2.23% on the last trading session, reaching $162.94 price per share at the time. The company report on December 5, 2021 that Johnson & Johnson COVID-19 Booster, Administered Six Months After Two-Dose Regimen of BNT162b2, Shows Substantial Increase in Antibody and T-cell Responses.

Preliminary Phase 2 study and a sub-study demonstrate value of mix-and-match approach; Johnson & Johnson booster increased neutralizing and binding antibodies, similar to boosting with BNT162b2, and showed strong increase in T-cell responses.

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Johnson & Johnson (NYSE: JNJ) (the Company) announced preliminary results from an independent study, including a subset of participants from the Janssen-sponsored COV2008 study, conducted by Dan Barouch, M.D., Ph.D., et al. of Beth Israel Deaconess Medical Center (BIDMC), which showed that a booster shot of the Johnson & Johnson COVID-19 vaccine (Ad26.COV2.S), administered at six months after a two-dose primary regimen of BNT162b2, increased both antibody and T-cell responses. These results demonstrate the potential benefits of heterologous boosting (mix-and-match). The article describing these results have been posted on medRxiv.

Johnson & Johnson represents 2.63 billion in outstanding shares, while the company has a total market value of $422.79 billion with the latest information. JNJ stock price has been found in the range of $159.83 to $163.52.

If compared to the average trading volume of 7.12M shares, JNJ reached a trading volume of 9214859 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 $187.76 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 2.10. 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.

Morgan Stanley have made an estimate for Johnson & Johnson shares, keeping their opinion on the stock as Equal-Weight, with their previous recommendation back on September 07, 2021. While these analysts kept the previous recommendation, Morgan Stanley raised their target price to Overweight. The new note on the price target was released on May 28, 2021, representing the official price target for Johnson & Johnson stock. Previously, the target price had yet another drop from $163 to $160, while UBS kept a Neutral rating on JNJ stock. On April 22, 2020, analysts increased their price target for JNJ shares from 150 to 175.

The Average True Range (ATR) for Johnson & Johnson is set at 2.75, with the Price to Sales ratio for JNJ stock in the period of the last 12 months amounting to 4.62. The Price to Book ratio for the last quarter was 6.10, with the Price to Cash per share for the same quarter was set at 11.95. Price to Free Cash Flow for JNJ in the course of the last twelve months was 36.57 with Quick ratio for the last quarter at 1.10.

Trading performance analysis for JNJ stock

Johnson & Johnson [JNJ] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.00. With this latest performance, JNJ shares dropped by -1.01% in over the last four-week period, additionally sinking by -0.28% over the last 6 months – not to mention a rise of 8.43% 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 54.22, with the RSI for the last a single of trading hit 58.63, and the three-weeks RSI is set at 51.75 for Johnson & Johnson [JNJ]. The present Moving Average for the last 50 days of trading for this stock 161.86, while it was recorded at 158.68 for the last single week of trading, and 165.60 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 +24.79 and a Gross Margin at +66.09. Johnson & Johnson’s Net Margin is presently recorded at +17.82.

Return on Total Capital for JNJ is now 21.80, given the latest momentum, and Return on Invested Capital for the company is 16.02. Return on Equity for this stock inclined to 23.97, with Return on Assets sitting at 8.85. When it comes to the capital structure of this company, Johnson & Johnson [JNJ] has a Total Debt to Total Equity ratio set at 57.47. Additionally, JNJ Total Debt to Total Capital is recorded at 36.50, with Total Debt to Total Assets ending up at 20.79. Long-Term Debt to Equity for the company is recorded at 53.31, with the Long-Term Debt to Total Capital now at 33.86.

Reflecting on the efficiency of the workforce at the company, Johnson & Johnson [JNJ] managed to generate an average of $109,398 per employee. Receivables Turnover for the company is 5.89 with a Total Asset Turnover recorded at a value of 0.50.Johnson & Johnson’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.30.

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

With the latest financial reports released by the company, Johnson & Johnson posted 1.86/share EPS, while the average EPS was predicted by analysts to be reported at 1.82/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 2.20%. 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 8.19%.

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

There are presently around $296,755 million, or 70.00% of JNJ stock, in the hands of institutional investors. The top three institutional holders of JNJ stocks are: VANGUARD GROUP INC with ownership of 233,479,175, which is approximately 0.884% of the company’s market cap and around 0.08% of the total institutional ownership; BLACKROCK INC., holding 195,038,467 shares of the stock with an approximate value of $31.78 billion in JNJ stocks shares; and STATE STREET CORP, currently with $23.17 billion in JNJ stock with ownership of nearly 0.097% 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 1,641 institutional holders increased their position in Johnson & Johnson [NYSE:JNJ] by around 55,323,884 shares. Additionally, 1,422 investors decreased positions by around 40,763,690 shares, while 344 investors held positions by with 1,725,165,121 shares. The mentioned changes placed institutional holdings at 1,821,252,695 shares, according to the latest SEC report filing. JNJ stock had 104 new institutional investments in for a total of 5,352,884 shares, while 94 institutional investors sold positions of 1,924,959 shares during the same period.