JNJ Stock Up 7% in the Past Month: What Drove the Bulls?

Recent performance of JNJ stock

On September 12, Johnson & Johnson (JNJ) stock closed at $139.36. That was a 0.61% rise from the previous day’s closing price of $138.51. Currently, JNJ stock is trading above its 50-day moving average of $133.29 and below its 200-day moving average of $127.99.

JNJ Stock Up 7% in the Past Month: What Drove the Bulls?

The stock is currently trading ~6% below its 52-week high of $148.32 reported on January 17. Rumors of a Chinese buyout of JNJ’s diabetes care unit for more than $4 billion were circulating in the market at that time.

On May 29, Johnson & Johnson reported that it was scrapping its Phase Ib/II trial for Darzalex for advanced or metastatic NSCLC (non-small cell lung cancer) treatment, which triggered a massive stock decline and a 52-week low of $118.62 that day. Currently, JNJ stock is trading ~17.5% higher than its 52-week low.

Recent events impacting JNJ stock

Over the last month, JNJ stock has risen ~7%. Over the last three months, it has risen ~14%, primarily on key product approvals and launches. However, year-to-date, JNJ stock has fallen ~0.26%.

Johnson & Johnson reported strong Q2 2018 results on July 17, which led to a ~3.5% rise in the stock. But since the company lost some lawsuits related to its talc-based products in July, the stock fell.

Over the past 12 months, JNJ stock has risen ~5.1% compared to ~12% for the Healthcare Select Sector SPDR ETF (XLV), which is reflective of the performance of the US healthcare industry. The broader market rose ~16% in the same period. Over the last year, Johnson & Johnson’s peers Pfizer (PFE), Mylan (MYL), and Abbott Laboratories (ABT) have returned 21%, 12.4%, and 29%, respectively.

In the rest of this series, we’ll look at some key events for JNJ over the last month.