Johnson & Johnson (NYSE:JNJ) has a beta of 0.71, a 12-month trailing P/E ratio of 29.24, and a growth ratio of 3.93. The stock’s Relative Strength Index (RSI) is 41.23, with weekly volatility at 1.38% and ATR at 2.18. The JNJ stock’s 52-week price range has touched low of $133.65 and a $173.65 high. Its shares traded lower over the last trading session, losing -2.20% on 06/01/21. The shares fell to a low of $165.38 before closing at $165.53. Intraday shares traded counted 10.43 million, which was -41.53% lower than its 30-day average trading volume of 7.37M. JNJ’s previous close was $169.25 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 $434.77 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 52.53 billion total, with 40.93 billion as their total liabilities.
JNJ were able to record 3.4 billion as free cash flow during the 07/21/2021 quarter of the year, this saw their quarterly net cash flow reduce by -1.31 billion. In cash movements, the company had a total of 4.07 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 07/21/2021 quarter of the year, Johnson & Johnson recorded a total of 22.32 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 7.3% coming in sequential stages and their sales for the 07/21/2021 quarter reducing by -0.69%.
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 7.06 billion trying to sell their products during the last quarter, with the result yielding a gross income of 15.26 billion. This allows shareholders to hold on to 2.63B with the recently reported earning now reading 2.35 cents per share. This is a figure that compared to analyst’s prediction for their 07/21/2021 (2.59 cents a share).
Having a look at the company’s valuation, the company is expected to record 10.27 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, Global Corp Aff & COO, Sneed Michael E sold 54,662 shares of the company’s stock in a transaction that recorded on Dec 09. The sale was performed at an average price of 152.93, for a total value of 8,359,460. As the sale deal closes, the EVP, Chief GSC Officer, Wengel Kathryn E now sold 16,115 shares of the company’s stock, valued at 2,473,938. Also, EVP, WW Chair, Medical Devices, McEvoy Ashley sold 29,000 shares of the company’s stock in a deal that was recorded on Jul 28. The shares were price at an average price of 147.47 per share, with a total market value of 4,276,630. Following this completion of acquisition, the 10% Owner, JOHNSON & JOHNSON now holds 725,000 shares of the company’s stock, valued at 12,325,000. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
12 out of 21 analysts covering the stock have rated it a Buy, while 5 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 $186.29.