Goldman slashes price target on Johnson & Johnson [JNJ] – find out why.

Related

Share

Johnson & Johnson [NYSE: JNJ] gained 0.40% or 0.68 points to close at $170.35 with a heavy trading volume of 3184533 shares. The company report on December 21, 2021 that DYAI: Jumpin’ Janssen Jamboree.

By John Vandermosten, CFA.


3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.

We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.

Click here for full details and to join for free.

Sponsored


It opened the trading session at $169.79, the shares rose to $170.64 and dropped to $169.59, the range by which the price of stock traded the whole day. The daily chart for JNJ points out that the company has recorded 3.85% gains over the past six months. However, it is still -12.46% lower than its most recent low trading price.

If we look at the average trading volume of 7.50M shares, JNJ reached to a volume of 3184533 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 $186.44 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.

Goldman have made an estimate for Johnson & Johnson shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on December 17, 2021. While these analysts kept the previous recommendation, Citigroup raised their target price from $192 to $195. The new note on the price target was released on December 15, 2021, representing the official price target for Johnson & Johnson stock. Previously, the target price had yet another raise to $187, while Morgan Stanley analysts kept a Equal-Weight rating on JNJ stock.

The Average True Range (ATR) for Johnson & Johnson is set at 2.47, with the Price to Sales ratio for JNJ stock in the period of the last 12 months amounting to 4.89. The Price to Book ratio for the last quarter was 6.38, with the Price to Cash per share for the same quarter was set at 11.80. Price to Free Cash Flow for JNJ in the course of the last twelve months was 38.71 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 1.55. With this latest performance, JNJ shares gained by 7.00% in over the last four-week period, additionally plugging by 3.85% over the last 6 months – not to mention a rise of 11.20% 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 62.05, with the RSI for the last a single of trading hit 64.65, and the three-weeks RSI is set at 59.67 for Johnson & Johnson [JNJ]. The present Moving Average for the last 50 days of trading for this stock 164.05, while it was recorded at 168.68 for the last single week of trading, and 166.30 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

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%.

>> 7 Top Picks for the Post-Pandemic Economy <<

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

There are presently around $309,039 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 0.07% of the total institutional ownership; BLACKROCK INC., holding 195,038,467 shares of the stock with an approximate value of $33.09 billion in JNJ stocks shares; and STATE STREET CORP, currently with $24.12 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 55,322,821 shares. Additionally, 1,425 investors decreased positions by around 40,635,991 shares, while 344 investors held positions by with 1,725,455,679 shares. The mentioned changes placed institutional holdings at 1,821,414,491 shares, according to the latest SEC report filing. JNJ stock had 107 new institutional investments in for a total of 5,386,627 shares, while 93 institutional investors sold positions of 1,788,544 shares during the same period.