AbbVie Target of Unusually High Options Trading (NYSE:ABBV)

Key Points

• AbbVie saw unusually heavy options activity on Tuesday, with traders buying 62,421 call options — about 307% above its average daily volume. That suggests bullish speculation on the stock.
• Several analysts remain positive on the company, including recent price-target raises from firms like Cantor Fitzgerald, Wells Fargo, Morgan Stanley and BMO Capital Markets. The consensus rating is currently Moderate Buy with an average target of $266.24.
• AbbVie’s shares fell 1.3% to $244.75, but the company recently beat quarterly earnings and revenue estimates and announced a $1.73 quarterly dividend. The dividend implies a 2.8% annual yield.

AbbVie Inc. (NYSE:ABBV - Get Free Report) was the target of unusually large options trading activity on Tuesday. Stock investors acquired 62,421 call options on the stock. This represents an increase of approximately 307% compared to the average daily volume of 15,355 call options.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on ABBV shares. DZ Bank upgraded shares of AbbVie from a "hold" rating to a "strong-buy" rating in a research note on Thursday, April 30th. Weiss Ratings reiterated a "hold (c)" rating on shares of AbbVie in a research note on Monday, June 8th. Cantor Fitzgerald boosted their target price on AbbVie from $240.00 to $265.00 and gave the company an "overweight" rating in a report on Monday, July 6th. Wells Fargo & Company upped their price target on AbbVie from $260.00 to $295.00 and gave the stock an "overweight" rating in a research note on Friday. Finally, Morgan Stanley increased their price target on AbbVie from $270.00 to $278.00 and gave the stock an "overweight" rating in a report on Thursday, April 30th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $266.24.

AbbVie Stock Down 1.3%

NYSE ABBV traded down $3.25 during trading hours on Tuesday, hitting $244.75. 5,234,574 shares of the stock were exchanged, compared to its average volume of 7,169,803. The company has a market cap of $432.42 billion, a price-to-earnings ratio of 120.57, a price-to-earnings-growth ratio of 0.81 and a beta of 0.30. AbbVie has a 12-month low of $184.63 and a 12-month high of $261.64. The stock has a 50-day moving average of $226.15 and a 200 day moving average of $221.34.

AbbVie (NYSE:ABBV - Get Free Report) last released its earnings results on Wednesday, April 29th. The company reported $2.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.59 by $0.06. The company had revenue of $15 billion for the quarter, compared to analysts' expectations of $14.72 billion. AbbVie had a negative return on equity of 576.45% and a net margin of 5.79%.The firm's quarterly revenue was up 12.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.46 EPS. On average, equities research analysts expect that AbbVie will post 14.3 earnings per share for the current year.

AbbVie Announces Dividend

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

More AbbVie News

Here are the key news stories impacting AbbVie this week:

• Positive Sentiment: BMO Capital Markets raised its price target on AbbVie to $300 from $258 and reiterated an outperform rating, signaling Wall Street sees meaningful upside. AbbVie price target raised by BMO Capital Markets
• Positive Sentiment: AbbVie’s Allergan Aesthetics unit said SkinMedica is expanding R&D investment and launching a regenerative science advisory board, suggesting continued product innovation and long-term growth support. SkinMedica deepens commitment to regenerative science
• Positive Sentiment: AbbVie saw unusually heavy call option buying, with bullish traders purchasing far more calls than normal, which can reflect speculation that the stock could rebound.
• Neutral Sentiment: Analyst coverage from Zacks discusses whether AbbVie is a buy, but the item is more a review of sentiment than a fresh catalyst. Is AbbVie (ABBV) a Buy as Wall Street Analysts Look Optimistic?
• Neutral Sentiment: AbbVie’s Durham pharmaceutical project is moving forward, which is supportive operationally but not likely a major near-term stock driver. AbbVie pharmaceutical project moves forward in Durham
• Neutral Sentiment: AbbVie also highlighted employee community service activity across Asia, a positive corporate citizenship update with limited direct impact on earnings. AbbVie Employees Across Asia Unite Through Week of Possibilities
• Negative Sentiment: AbbVie extended its losing streak to a seventh straight session, suggesting investor sentiment remains weak despite the positive headlines. AbbVie extends slide to a seventh straight session

Hedge Funds Weigh In On AbbVie

Institutional investors and hedge funds have recently made changes to their positions in the stock. Brighton Jones LLC boosted its position in AbbVie by 17.4% during the fourth 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 position in shares of AbbVie by 72.7% in the fourth quarter. Revolve Wealth Partners LLC now owns 7,279 shares of the company's stock valued at $1,294,000 after buying an additional 3,064 shares in the last quarter. Schnieders Capital Management LLC. raised its stake in shares of AbbVie by 5.0% during the 2nd quarter. Schnieders Capital Management LLC. now owns 16,466 shares of the company's stock worth $3,056,000 after buying an additional 789 shares during the last quarter. Ieq Capital LLC raised its stake in shares of AbbVie by 4.6% during the 2nd quarter. Ieq Capital LLC now owns 120,035 shares of the company's stock worth $22,281,000 after buying an additional 5,274 shares during the last quarter. Finally, Worldquant Millennium Advisors LLC boosted its position in shares of AbbVie by 117.3% in the 2nd quarter. Worldquant Millennium Advisors LLC now owns 1,135,034 shares of the company's stock worth $210,685,000 after buying an additional 612,702 shares in the last quarter. 70.23% of the stock is owned by institutional investors and hedge funds.

About AbbVie

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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