John C. Reed, Executive Vice President, Innovative Medicine and R&D of Johnson & Johnson (JNJ 0.21%), executed an open market sale of 19,137 shares as disclosed in a Form 4 filed July 18, 2025.
Transaction summary
| Metric | Value |
|---|---|
| Shares traded | 19,137 |
| Transaction value | $3.13 million, as reported in the SEC Form 4 filing dated July 18, 2025 |
| 1-year performance (as of July 18) | 8% total return over the past year (calendar year basis) |
Key questions
How does this transaction compare to John C. Reed’s historical trading activity?
This sale is smaller than Reed’s historical median transaction size of 36,239 shares, and follows a recent trend of reduced trade volumes and more frequent selling over the past year, with only 20% of his trades classified as buys over the past 12 months.
How does the transaction price relate to current market pricing?
Shares were sold at an average price of $163.55, approximately 0.5% below the $164.36 closing price as of July 21, 2025, indicating the sale occurred at a slight discount to the latest market price.
What is the context of this transaction in relation to Johnson & Johnson’s recent performance?
Johnson & Johnson shares delivered 8% total return in one year as of the transaction reporting date. The company maintains a large market capitalization and leadership in the healthcare sector, suggesting the sale does not coincide with pronounced negative price momentum.
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $417.4 billion |
| Revenue (TTM) | $90.6 billion |
| Net income (TTM) | $22.7 billion |
| Dividend yield | 3.0% |
Data as of August 8, 2025.
Company snapshot
- Johnson & Johnson generates revenue through two segments: innovative medicine (pharma) and medtech (medical devices).
- The company operates a diversified business model focused on research, development, manufacturing, and global distribution of healthcare products, with a balanced mix of prescription medicines and medical devices.
- Johnson & Johnson is a Dividend King, having increased its dividend for over 60 consecutive years.
Foolish take
Once known primarily for its consumer health brands such as Tylenol and Listerine, Johnson & Johnson made a major strategic move in 2023 when it spun off its consumer health business into a separate publicly-listed company, Kenvue. J&J is now a healthcare behemoth, with two diversified businesses that cover two of the most important areas of healthcare.
NYSE: JNJ
Key Data Points
Its innovative medicine segment focuses on oncology, immunology, and neuroscience, owns top medicine brands like Darzalex, Stelara, and Imbruvica, and accounted for 64% of J&J's total sales in fiscal 2024. Medtech, meanwhile, makes medical equipment and technologies for cardiology, surgery, and vision. Between the two businesses, J&J owns 26 products or platforms generating over $1 billion in annual sales each.
Despite Stelara's loss of exclusivity, J&J continues to deliver. In its second quarter, J&J reported 5.8% growth in net sales. In innovative medicine, oncology continues to grow at a steady pace, while Spravato is growing rapidly. Sales from Spravato, a nasal spray for treatment-resistant depression in adults, jumped 53% in Q2.
Strong Q2 performance and progress in new product pipeline even encouraged J&J management to boost its full-year guidance. It now expects operational sales (sales excluding the impact of currency) to grow by 4.8% at the midpoint versus its previous forecast of 3.8% and adjusted earnings per share by 8.7% at the midpoint versus 6.2%. I believe investors shouldn't read much into insider sales like Reed's transaction, and continue to buy and hold this magnificent dividend stock.
Glossary
Form 4: A required SEC filing disclosing insider trades by company officers, directors, or major shareholders.
Open market sale: The sale of securities on a public exchange, rather than through private transactions or company programs.
Insider trading activity: Buying or selling a company’s stock by its executives, directors, or employees with access to nonpublic information.
Median transaction size: The middle value of all transaction sizes, used to measure typical trade volume for an individual.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Dividend yield: Annual dividend payments divided by the stock's current price, shown as a percentage.
TTM: The 12-month period ending with the most recent quarterly report.
Market capitalization: The total market value of a company's outstanding shares.
Pharmaceuticals: Prescription drugs and medicines developed, manufactured, and sold by healthcare companies.
Medtech: Medical technology products, including devices and equipment used in healthcare settings.
