Johnson & Johnson, one of the world’s largest healthcare companies, has a diverse ownership structure that reflects its position as a publicly traded corporation. Founded by three innovative brothers – Robert, James, and Edward Mead Johnson – in 1886, the company has grown from a small family business to a global healthcare giant.
Johnson & Johnson is primarily owned by institutional investors who hold approximately 52.57% of the company’s stock. Meanwhile, 47.39% is owned by public companies and individual investors, and a small 0.04% is owned by company insiders.
Among the individual shareholders, Alex Gorsky, Johnson & Johnson’s executive chairman, stands out as the largest individual shareholder with 3.2 million shares as of February 2021. This ownership distribution shows how the company has evolved from its family-owned roots when Robert Wood Johnson II, son of the founder, led the company, to the modern corporate structure it maintains today.
Key Takeaways
- Johnson & Johnson’s ownership is dominated by institutional investors who control over half of the company’s shares.
- The company transformed from a small family business started by the Johnson brothers in 1886 to a publicly traded healthcare giant.
- Executive leadership maintains significant personal investment in the company, with the executive chairman owning millions of shares.
Company Overview
Johnson & Johnson is a global healthcare company founded by three brothers: Robert Wood Johnson, James Wood Johnson, and Edward Mead Johnson. They established the company in New Brunswick, New Jersey, where it began its journey in the healthcare industry.
With a rich history spanning more than 135 years, Johnson & Johnson has grown into one of the world’s leading pharmaceutical and consumer health companies. They create products that touch millions of lives daily.
The company operates with a strong set of values guided by their famous Credo. This document puts the needs of patients, doctors, nurses, and families first, showing their commitment to humanity and ethical business practices.
Ownership of Johnson & Johnson is divided among various stakeholders. About 52.57% of the company’s stock belongs to Institutional Investors, while only 0.04% is owned by company insiders. The remaining 47% is held by other investors.
Major shareholders include financial giants like:
Among individual shareholders, Alex Gorsky, Johnson & Johnson’s executive chairman, holds the largest stake with 3.2 million shares as of February 2021.
The company’s employees worldwide contribute to its mission of improving health outcomes and bringing innovative solutions to healthcare challenges.
Ownership Structure
Johnson & Johnson has a diverse ownership structure with a mix of institutional investors, retail shareholders, and individual investors. The company’s stock is widely held across different types of investors who collectively own the healthcare giant.
Institutional Ownership
Institutional investors hold the majority stake in Johnson & Johnson (JNJ). These large organizations own approximately 32.57% of the company’s shares. The biggest institutional holders include investment management firms and financial services companies.
BlackRock Advisors LLC maintains a significant position with 6.279% ownership, representing over 151 million shares. Another major holder is STATE STREET CORPORATION with a 5.585% stake, controlling about 134.4 million shares.
The Vanguard Group is also among the top institutional investors in Johnson & Johnson. Various hedge funds maintain positions in JNJ stock as part of their investment portfolios, seeing the company as a stable blue-chip investment.
Public Investors and Shareholdings
Individual investors make up an important portion of Johnson & Johnson’s ownership base. These include both retail investors and company insiders.
The largest individual shareholder has historically been company executives. As of February 2021, Alex Gorsky, Johnson & Johnson’s executive chairman, held 3.2 million shares, making him the largest individual owner.
Johnson & Johnson’s common stock is widely available to the public, traded on the New York Stock Exchange under the ticker symbol JNJ. The company has millions of retail investors who own small portions of the business.
Many retirement funds and individual retirement accounts (IRAs) hold JNJ shares as a long-term investment. The company’s reputation for stability and consistent dividend payments makes it attractive to individual investors planning for retirement.
Financial Performance
Johnson & Johnson’s financial health remains robust with steady growth in recent years. The company continues to deliver strong results for shareholders while investing in innovation across its healthcare segments.
Share Price History
J&J stock has shown resilience over time despite market fluctuations. The company’s diversified portfolio helps maintain stability in its share price. Investors appreciate J&J’s status as a dividend aristocrat, having increased dividends for decades.
The Common Stock has weathered various challenges including litigation concerns and market downturns. When comparing J&J to other healthcare giants, its share price volatility is typically lower than industry averages.
In 2024, the stock performance reflected the company’s solid operational execution. Following their Q4 2024 results showing 5.3% reported sales growth to $22.5 billion, investors responded positively.
Analyst Recommendations and Expected Performance
Wall Street maintains generally favorable views on Johnson & Johnson stock. Most analysts rate J&J as either “buy” or “hold” based on its reliable performance and innovation pipeline.
The expected performance for 2025 looks promising after a transformative 2024 marked by strong growth and accelerating pipeline developments. Analysts point to several growth drivers:
- Continued strength in pharmaceutical sales
- Expanding medical device market share
- Strategic acquisitions like the $6.5 billion Momenta Pharmaceuticals deal
Quarterly results consistently meet or exceed expectations. The Q4 2024 figures showed operational growth of 6.7% and adjusted operational growth of 5.7%, impressing market watchers.
Looking ahead, experts anticipate J&J will maintain its growth trajectory through innovation investments and careful capital allocation.
Commitment to Society
Johnson & Johnson has maintained a strong dedication to society beyond its business operations. The company’s approach to social responsibility stems from its foundational values, emphasizing health equity and community support as core priorities.
Corporate Social Responsibility
Johnson & Johnson’s social commitment is deeply rooted in its corporate DNA and highlighted in its Credo. The company actively supports over 100 community-led organizations in marginalized communities.
These organizations receive resources to advance health equity across the United States. Their societal impact strategy focuses on enhancing healthcare access and fostering healthier communities worldwide. This commitment dates back to 1943 when Robert Wood Johnson, former chairman and founding family member, created Our Credo to guide the company’s responsibilities.
The Johnson & Johnson Family of Companies believes in improving communities where employees live and work. Their initiatives address critical health challenges and support vulnerable populations through partnerships, funding, and volunteer efforts.
