AbbVie (NYSE:ABBV) Shares Down 3% After Analyst Downgrade

Key Points

• AbbVie shares declined by 3% after HSBC Global Research downgraded the stock from a strong-buy to a hold rating.
• In recent transactions, AbbVie executives sold significant shares of stock, reflecting a decrease in their ownership positions.
• AbbVie announced a quarterly dividend of $1.64, indicating a yield of 2.8%, with a payout ratio of 312.38%.

AbbVie Inc. (NYSE:ABBV - Get Free Report)'s stock price fell 3% during mid-day trading on Thursday after Hsbc Global Res downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $234.52 and last traded at $236.98. 8,093,198 shares were traded during mid-day trading, an increase of 25% from the average session volume of 6,498,081 shares. The stock had previously closed at $244.38.

Other equities analysts have also recently issued research reports about the company. Bank of America raised their price objective on AbbVie to $204.00 and gave the company a "hold" rating in a report on Monday, June 9th. BMO Capital Markets boosted their price objective on AbbVie from $215.00 to $240.00 and gave the stock an "outperform" rating in a report on Friday, September 12th. Morgan Stanley boosted their price objective on AbbVie from $250.00 to $255.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Raymond James Financial reiterated an "outperform" rating on shares of AbbVie in a research note on Monday, August 25th. Finally, HSBC downgraded shares of AbbVie from a "buy" rating to a "hold" rating in a research report on Wednesday. Four equities research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $223.52.

Insiders Place Their Bets

In other AbbVie news, EVP Azita Saleki-Gerhardt sold 42,370 shares of the stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $198.42, for a total transaction of $8,407,055.40. Following the completion of the sale, the executive vice president directly owned 177,292 shares in the company, valued at approximately $35,178,278.64. This trade represents a 19.29% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Nicholas Donoghoe sold 13,295 shares of the stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $198.51, for a total transaction of $2,639,190.45. Following the transaction, the executive vice president directly owned 58,247 shares in the company, valued at $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 0.25% of the company's stock.

Hedge Funds Weigh In On AbbVie

Several hedge funds have recently modified their holdings of the company. Brighton Jones LLC grew its position in shares of AbbVie by 17.4% during the 4th quarter. Brighton Jones LLC now owns 22,912 shares of the company's stock valued at $4,072,000 after purchasing an additional 3,401 shares in the last quarter. Revolve Wealth Partners LLC grew its position in AbbVie by 72.7% in the fourth 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 in the last quarter. CGN Advisors LLC grew its position in AbbVie by 10.3% in the first quarter. CGN Advisors LLC now owns 2,045 shares of the company's stock worth $428,000 after acquiring an additional 191 shares in the last quarter. Apella Capital LLC grew its position in AbbVie by 9.4% in the first quarter. Apella Capital LLC now owns 8,827 shares of the company's stock worth $1,849,000 after acquiring an additional 756 shares in the last quarter. Finally, Amplius Wealth Advisors LLC grew its position in AbbVie by 9.2% in the first quarter. Amplius Wealth Advisors LLC now owns 2,814 shares of the company's stock worth $590,000 after acquiring an additional 237 shares in the last quarter. Institutional investors own 70.23% of the company's stock.

AbbVie Price Performance

The firm's 50-day moving average is $208.97 and its 200-day moving average is $195.71. The company has a market capitalization of $418.63 billion, a PE ratio of 112.85, a price-to-earnings-growth ratio of 1.35 and a beta of 0.51. The company has a quick ratio of 0.61, a current ratio of 0.74 and a debt-to-equity ratio of 44.14.

AbbVie (NYSE:ABBV - Get Free Report) last posted its quarterly earnings results 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). The business had revenue of $15.42 billion during the quarter, compared to the consensus estimate of $14.93 billion. AbbVie had a return on equity of 699.66% and a net margin of 6.45%.The business's revenue for the quarter was up 6.6% on a year-over-year basis. During the same period in the prior year, the firm earned $2.65 earnings per share. Equities analysts predict that AbbVie Inc. will post 12.31 earnings per share for the current fiscal year.

AbbVie Dividend Announcement

The firm also recently declared 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 annualized dividend and a yield of 2.8%. AbbVie's payout ratio is currently 312.38%.

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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