AbbVie (NYSE:ABBV) Shares Down 1% - Here's Why

Key Points

• AbbVie shares fell by 1% on a recent trading day, closing at $210.39 with a significant drop in trading volume, indicating reduced investor interest.
• Analysts have set a consensus price target of $214.95 for AbbVie, with some firms issuing new ratings and target prices ranging from $205.00 to $231.00.
• AbbVie announced a quarterly dividend of $1.64 to be paid on November 14th, reflecting a 3.1% yield; however, the company's payout ratio is notably high at 312.38%.

AbbVie Inc. (NYSE:ABBV - Get Free Report)'s share price traded down 1% on Monday . The company traded as low as $207.61 and last traded at $210.39. 1,049,789 shares traded hands during trading, a decline of 84% from the average session volume of 6,486,220 shares. The stock had previously closed at $212.56.

Analysts Set New Price Targets

A number of equities analysts have weighed in on ABBV shares. Citigroup boosted their target price on shares of AbbVie to $205.00 and gave the stock a "hold" rating in a research note on Wednesday, June 11th. Piper Sandler assumed coverage on shares of AbbVie in a research note on Tuesday, August 12th. They issued an "overweight" rating and a $231.00 target price on the stock. Daiwa Capital Markets raised shares of AbbVie from a "neutral" rating to an "outperform" rating and set a $214.00 target price for the company in a report on Thursday, August 7th. Wall Street Zen lowered AbbVie from a "strong-buy" rating to a "buy" rating in a research note on Thursday, May 22nd. Finally, Daiwa America upgraded AbbVie from a "hold" rating to a "strong-buy" rating in a research report on Thursday, August 7th. Four equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $214.95.

AbbVie Trading Down 1.4%

The company has a debt-to-equity ratio of 44.14, a quick ratio of 0.61 and a current ratio of 0.74. The company's 50-day moving average is $197.74 and its 200-day moving average is $194.08. The firm has a market cap of $370.32 billion, a price-to-earnings ratio of 99.82, a P/E/G ratio of 1.37 and a beta of 0.53.

AbbVie (NYSE:ABBV - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The company reported $2.97 earnings per share for the quarter, missing the consensus estimate of $3.24 by ($0.27). AbbVie had a return on equity of 699.66% and a net margin of 6.45%.The firm had revenue of $15.42 billion for the quarter, compared to the consensus estimate of $14.93 billion. During the same period in the prior year, the company earned $2.65 EPS. The company's revenue for the quarter was up 6.6% compared to the same quarter last year. On average, research analysts predict that AbbVie Inc. will post 12.31 earnings per share for the current year.

AbbVie Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 14th. Shareholders of record on Wednesday, October 15th will be paid a $1.64 dividend. The ex-dividend date of this dividend is Wednesday, October 15th. This represents a $6.56 dividend on an annualized basis and a yield of 3.1%. AbbVie's payout ratio is presently 312.38%.

Insider Activity

In other news, EVP Azita Saleki-Gerhardt sold 42,370 shares of the company's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $198.42, for a total value of $8,407,055.40. Following the sale, the executive vice president owned 177,292 shares in the company, valued at $35,178,278.64. This represents a 19.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Nicholas Donoghoe sold 13,295 shares of the firm's stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $198.51, for a total value of $2,639,190.45. Following the sale, the executive vice president directly owned 58,247 shares of the company's stock, valued at approximately $11,562,611.97. This trade represents a 18.58% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 0.08% of the company's stock.

Hedge Funds Weigh In On AbbVie

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ABBV. Brighton Jones LLC increased its position in AbbVie by 17.4% during the 4th quarter. Brighton Jones LLC now owns 22,912 shares of the company's stock worth $4,072,000 after purchasing an additional 3,401 shares in the last quarter. Revolve Wealth Partners LLC increased its holdings in AbbVie by 72.7% during the 4th quarter. Revolve Wealth Partners LLC now owns 7,279 shares of the company's stock worth $1,294,000 after acquiring an additional 3,064 shares during the period. Driehaus Capital Management LLC purchased a new stake in shares of AbbVie in the 4th quarter valued at $542,000. Humankind Investments LLC raised its holdings in AbbVie by 22.1% during the 4th quarter. Humankind Investments LLC now owns 18,323 shares of the company's stock valued at $3,256,000 after buying an additional 3,316 shares during the last quarter. Finally, Iron Triangle Partners LP bought a new position in shares of AbbVie in the 4th quarter worth about $66,462,000. 70.23% of the stock is currently owned by institutional investors and hedge funds.

AbbVie Company Profile

AbbVie Inc discovers, develops, manufactures, and sells pharmaceuticals worldwide. The company offers Humira, an injection for autoimmune and intestinal Behçet's diseases, and pyoderma gangrenosum; Skyrizi to treat moderate to severe plaque psoriasis, psoriatic disease, and Crohn's disease; Rinvoq to treat rheumatoid and psoriatic arthritis, ankylosing spondylitis, atopic dermatitis, axial spondyloarthropathy, ulcerative colitis, and Crohn's disease; Imbruvica for the treatment of adult patients with blood cancers; Epkinly to treat lymphoma; Elahere to treat cancer; and Venclexta/Venclyxto to treat blood cancers.

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