Institutional Investors Offload Over $141M of Johnson & Johnson Shares
Tandem Investment Advisors trimmed its Johnson & Johnson holding by 2.7% to 281,900 shares ($52.3 million), while Everett Harris & Co. sold 5,055 shares, reducing its stake by 1.0% to 479,456 shares ($88.9 million). Townsquare Capital also cut 9,801 shares ($8.75 million) in Q3.
1. Institutional Investors Increase and Rebalance Stakes
In the third quarter, Banyan Capital Management built a new position in Johnson & Johnson, acquiring 3,853 shares valued at roughly $714,000 and making J&J its 22nd largest holding at 0.3% of its portfolio. Other major institutional moves include Norges Bank’s establishment of a roughly $4.88 billion stake during the second quarter and Laurel Wealth Advisors boosting its position by 15,040.6% to 7.42 million shares (approximately $1.13 billion). Vanguard Group added 3.09 million shares to reach 237.05 million shares, Geode Capital Management increased its holdings by 1.23 million shares to 60.61 million, and Legal & General Group added 1.10 million shares to hold 18.92 million. Collectively, institutional investors now own 69.55% of the company.
2. Strong Quarterly Results and Guidance Raise Confidence
Johnson & Johnson reported fourth-quarter earnings per share of $2.46, in line with consensus, on revenue of $24.56 billion, exceeding the $24.14 billion analyst estimate and marking 9.1% year-over-year growth. Net margin stood at 28.46% and return on equity at 33.34%. Management set full-year guidance at $11.43–$11.63 EPS, while the consensus forecast for the current year is $10.58. The board approved a quarterly dividend of $1.30 per share (47.1% payout ratio, 2.3% yield). Positive raise in firm targets and Outperform ratings by Daiwa (to $237), Scotiabank (to $265) and an upgrade by Morgan Stanley signal buy-side confidence in near-term upside.
3. Regulatory Progress, Legal Developments and Market Sentiment
European regulators issued a favorable opinion for AKEEGA (niraparib plus abiraterone) in BRCA1/2-mutant metastatic hormone-sensitive prostate cancer, supporting an expanded oncology pipeline. A U.S. judge dismissed a fraud lawsuit related to the company’s talc bankruptcy strategy, removing a legal overhang, though analysts caution broader talc litigation remains unresolved. Unusually high options volume suggests elevated trader interest and potential short-term volatility. Insider sales of approximately $22 million following quarterly results have raised some governance and perception questions, while overall Wall Street coverage remains broadly positive but measured.