Analyzing the Price-to-Earnings Ratio of Johnson & Johnson (JNJ)

The price-to-earnings ratio for Johnson & Johnson (NYSE: JNJ) is above average at 32.77x. The 36-month beta value for JNJ is also noteworthy at 0.54. There are mixed opinions on the stock, with 5 analysts rating it as a “buy,” 3 rating it as “overweight,” 14 rating it as “hold,” and 0 rating it as “sell.”

The average price estimated by analysts for JNJ is $179.69, which is $22.79 above than the current price. The public float for JNJ is 2.60B, and at present, short sellers hold a 0.49% of that float. The average trading volume of JNJ on May 25, 2023 was 7.31M shares.

JNJ) stock’s latest price update

Johnson & Johnson (NYSE: JNJ) has experienced a decline in its stock price by -0.10 compared to its previous closing price of 156.81. However, the company has seen a fall of -1.47% in its stock price over the last five trading days.

JNJ’s Market Performance

Johnson & Johnson (JNJ) has seen a -1.47% fall in stock performance for the week, with a -5.16% decline in the past month and a -0.68% plunge in the past quarter. The volatility ratio for the week is 1.10%, and the volatility levels for the past 30 days are at 1.16% for JNJ.. The simple moving average for the past 20 days is -2.74% for JNJ’s stock, with a -5.59% simple moving average for the past 200 days.

JNJ Trading at -1.85% from the 50-Day Moving Average

After a stumble in the market that brought JNJ to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -14.56% of loss for the given period.

Volatility was left at 1.16%, however, over the last 30 days, the volatility rate increased by 1.10%, as shares sank -3.66% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +1.78% upper at present.

During the last 5 trading sessions, JNJ fell by -1.47%, which changed the moving average for the period of 200-days by -7.96% in comparison to the 20-day moving average, which settled at $160.77. In addition, Johnson & Johnson saw -11.32% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at JNJ starting from Swanson James D., who sale 1,062 shares at the price of $154.66 back on Mar 06. After this action, Swanson James D. now owns 9,215 shares of Johnson & Johnson, valued at $164,199 using the latest closing price.

Wolk Joseph J, the Exec VP, CFO of Johnson & Johnson, sale 14,781 shares at $179.60 during a trade that took place back on Dec 13, which means that Wolk Joseph J is holding 35,812 shares at $2,654,661 based on the most recent closing price.

Stock Fundamentals for JNJ

Current profitability levels for the company are sitting at:

• +26.08 for the present operating margin
• +67.67 for the gross margin

The net margin for Johnson & Johnson stands at +18.88. The total capital return value is set at 21.88, while invested capital returns managed to touch 17.09. Equity return is now at value 17.00, with 6.90 for asset returns.

Based on Johnson & Johnson (JNJ), the company’s capital structure generated 53.33 points at debt to equity in total, while total debt to capital is 34.78. Total debt to assets is 21.86, with long-term debt to equity ratio resting at 36.70. Finally, the long-term debt to capital ratio is 23.94.

When we switch over and look at the enterprise to sales, we see a ratio of 4.41, with the company’s debt to enterprise value settled at 0.08. The receivables turnover for the company is 6.04 and the total asset turnover is 0.51. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.99.

Conclusion

In summary, Johnson & Johnson (JNJ) has had a bad performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.