AbbVie (NYSE:ABBV) Trading Down 1.1% - Here's Why

Key Points

• AbbVie shares fell 1.1% on Tuesday, trading as low as $250.10 after closing at $254.31 the prior day, even as volume remained fairly active.
• Several pipeline updates were positive, including successful Phase 3 results for epcoritamab plus lenalidomide in diffuse large B-cell lymphoma and favorable European CHMP opinions for Rinvoq in alopecia areata and vitiligo.
• There is some headline risk from a U.S. House committee investigation into AbbVie’s clinical trials in China, while analysts overall still rate the stock a Moderate Buy with a consensus price target of $253.81.

AbbVie Inc. (NYSE:ABBV - Get Free Report) shares were down 1.1% on Tuesday . The stock traded as low as $250.10 and last traded at $251.45. 6,849,466 shares were traded during mid-day trading, a decline of 5% from the average session volume of 7,211,684 shares. The stock had previously closed at $254.31.

Key AbbVie News

Here are the key news stories impacting AbbVie this week:

• Positive Sentiment: AbbVie and Genmab reported that the Phase 3 EPCORE DLBCL-4 trial for epcoritamab plus lenalidomide in relapsed/refractory diffuse large B-cell lymphoma met its primary endpoint, with statistically significant improvement in progression-free survival. That supports a potential label expansion and strengthens confidence in AbbVie’s oncology pipeline. Article Title
• Positive Sentiment: AbbVie received positive CHMP opinions in Europe for Rinvoq in severe alopecia areata and non-segmental vitiligo, expanding the drug’s potential reach in autoimmune and dermatology markets. These decisions could add future sales upside if finalized by the European Commission. Article Title
• Positive Sentiment: The company also got a boost from a reported $1.2 billion in additional potential milestone payments tied to its alliance with Nxera Pharma, underscoring the value of AbbVie’s partnered pipeline. Article Title
• Neutral Sentiment: Some coverage noted AbbVie is drawing increased investor attention and that analysts have nudged forward earnings expectations, which may be helping sentiment but does not by itself change the company’s near-term fundamentals. Article Title
• Negative Sentiment: AbbVie is facing a US House committee investigation over clinical trials conducted in China, with lawmakers examining national security, due diligence and data-protection concerns. That introduces headline risk and could weigh on the stock if scrutiny escalates. Article Title

Wall Street Analyst Weigh In

Several equities analysts have commented on ABBV shares. Wall Street Zen upgraded AbbVie from a "buy" rating to a "strong-buy" rating in a report on Saturday. Weiss Ratings restated a "hold (c)" rating on shares of AbbVie in a research note on Monday, June 8th. Canaccord Genuity Group upped their price objective on shares of AbbVie from $265.00 to $273.00 and gave the stock a "buy" rating in a report on Tuesday, June 23rd. Cantor Fitzgerald reiterated an "overweight" rating on shares of AbbVie in a research note on Tuesday, June 23rd. Finally, William Blair reiterated an "outperform" rating on shares of AbbVie in a report on Monday, March 9th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and six have given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $253.81.

AbbVie Trading Down 1.1%

The stock has a fifty day simple moving average of $216.06 and a 200-day simple moving average of $219.38. The stock has a market cap of $444.26 billion, a price-to-earnings ratio of 123.87, a price-to-earnings-growth ratio of 0.77 and a beta of 0.32.

AbbVie (NYSE:ABBV - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The company reported $2.65 EPS for the quarter, topping analysts' consensus estimates of $2.59 by $0.06. AbbVie had a negative return on equity of 576.45% and a net margin of 5.79%.The company had revenue of $15 billion during the quarter, compared to analyst estimates of $14.72 billion. During the same period in the previous year, the company earned $2.46 earnings per share. The company's quarterly revenue was up 12.4% compared to the same quarter last year. Sell-side analysts forecast that AbbVie Inc. will post 14.28 earnings per share for the current fiscal year.

AbbVie Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Wednesday, July 15th will be paid a dividend of $1.73 per share. This represents a $6.92 annualized dividend and a yield of 2.8%. The ex-dividend date is Wednesday, July 15th. AbbVie's dividend payout ratio is presently 340.89%.

Institutional Trading of AbbVie

Several hedge funds and other institutional investors have recently bought and sold shares of ABBV. Norges Bank bought a new position in AbbVie during the fourth quarter valued at about $5,865,055,000. Wellington Management Group LLP grew its holdings in shares of AbbVie by 457.4% during the 3rd quarter. Wellington Management Group LLP now owns 10,536,901 shares of the company's stock worth $2,439,714,000 after purchasing an additional 8,646,424 shares in the last quarter. Capital World Investors grew its holdings in shares of AbbVie by 106.3% during the 4th quarter. Capital World Investors now owns 13,071,444 shares of the company's stock worth $2,986,777,000 after purchasing an additional 6,736,161 shares in the last quarter. Cardano Risk Management B.V. increased its position in shares of AbbVie by 914.6% during the fourth quarter. Cardano Risk Management B.V. now owns 5,444,930 shares of the company's stock valued at $1,244,112,000 after purchasing an additional 4,908,260 shares during the period. Finally, Geode Capital Management LLC raised its stake in shares of AbbVie by 10.4% in the fourth quarter. Geode Capital Management LLC now owns 44,629,980 shares of the company's stock valued at $10,179,099,000 after purchasing an additional 4,190,487 shares in the last quarter. 70.23% of the stock is currently owned by institutional investors and hedge funds.

AbbVie Company Profile

AbbVie is a global, research-driven biopharmaceutical company that was created as a spin-off from Abbott Laboratories in 2013 and is headquartered in North Chicago, Illinois. The company focuses on discovering, developing and commercializing therapies for complex and often chronic medical conditions. Its operations span research and development, manufacturing, regulatory affairs and commercialization, with an emphasis on bringing specialty medicines to market across multiple therapeutic areas.

AbbVie's product portfolio and pipeline cover several major therapeutic categories, including immunology, oncology, neuroscience, virology and women's health.

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