Johnson & Johnson (NYSE:JNJ) has a beta of 0.68, a 12-month trailing P/E ratio of 24.04, and a growth ratio of 5.49. The stock’s Relative Strength Index (RSI) is 63.02, with weekly volatility at 1.37% and ATR at 2.43. The JNJ stock’s 52-week price range has touched low of $109.16 and a $157.00 high. Its shares traded higher over the last trading session, gaining 0.85% on 12/04/20. The shares fell to a low of $149.27 before closing at $150.27. Intraday shares traded counted 6.74 million, which was 1.87% higher than its 30-day average trading volume of 6.87M. JNJ’s previous close was $149.00 while the outstanding shares total 2.63B.
Investors have identified the Drug Manufacturers – General company Johnson & Johnson as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $392.25 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Johnson & Johnson (JNJ) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 57578000000 million total, with 38847000000 million as their total liabilities.
JNJ were able to record 13.17 billion as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 1.66 billion. In cash movements, the company had a total of 15.19 billion as operating cash flow.
Potential earnings growth for Johnson & Johnson (JNJ)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Johnson & Johnson recorded a total of 21.08 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 1.67% coming in sequential stages and their sales for the third quarter increasing by 13.03%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 6.97 billion trying to sell their products during the last quarter, with the result yielding a gross income of 14.11 billion. This allows shareholders to hold on to 2.63B with the revenue now reading 1.35 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (1.99 cents a share).
Having a look at the company’s valuation, the company is expected to record 8.68 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on JNJ sounds very interesting.
Is the stock of JNJ attractive?
In related news, EVP, Chief GSC Officer, Wengel Kathryn E sold 16,115 shares of the company’s stock in a transaction that recorded on Sep 02. The sale was performed at an average price of 153.52, for a total value of 2,473,938. As the sale deal closes, the EVP, WW Chair, Medical Devices, McEvoy Ashley now sold 29,000 shares of the company’s stock, valued at 4,276,630. Also, 10% Owner, JOHNSON & JOHNSON bought 725,000 shares of the company’s stock in a deal that was recorded on Jun 30. The shares were price at an average price of 17.00 per share, with a total market value of 12,325,000. Following this completion of acquisition, the Director, PEREZ WILLIAM D now holds 500 shares of the company’s stock, valued at 63,843. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.08%.
10 out of 18 analysts covering the stock have rated it a Buy, while 6 have maintained a Hold recommendation on Johnson & Johnson. 0 analysts has assigned a Sell rating on the JNJ stock. The 12-month mean consensus price target for the company’s shares has been set at $166.18.