AbbVie Inc. $ABBV Stock: Sanders Capital LLC Trims Stake

Key Points

• Sanders Capital reduced its AbbVie stake by 4.4% in the third quarter, selling 21,240 shares; it held 462,723 shares worth about $121 million at quarter-end.
• AbbVie reported quarterly revenue of $17.4 billion and adjusted EPS of $3.82, topping analyst estimates, and raised its full-year earnings outlook. It also increased its quarterly dividend from $1.73 to $1.82 per share.
• Analyst sentiment remains broadly positive: AbbVie has a “Moderate Buy” consensus rating and an average price target of $297.46, though the article notes that shares are near their 52-week high and newer products must offset Humira’s decline.

Sanders Capital LLC cut its holdings in shares of AbbVie Inc. (NYSE:ABBV - Free Report) by 4.4% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 462,723 shares of the company's stock after selling 21,240 shares during the quarter. Sanders Capital LLC's holdings in AbbVie were worth $121,044,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. State Street Corp grew its position in shares of AbbVie by 1.7% during the 2nd quarter. State Street Corp now owns 82,596,748 shares of the company's stock valued at $20,784,646,000 after acquiring an additional 1,379,232 shares during the period. Corient Private Wealth LP purchased a new stake in shares of AbbVie during the 2nd quarter worth approximately $559,736,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of AbbVie by 0.7% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 14,267,697 shares of the company's stock worth $3,590,323,000 after purchasing an additional 106,091 shares during the last quarter. Legal & General Group Plc bought a new stake in shares of AbbVie in the 2nd quarter worth approximately $2,905,952,000. Finally, Deutsche Bank AG raised its holdings in shares of AbbVie by 13.0% in the 2nd quarter. Deutsche Bank AG now owns 10,772,949 shares of the company's stock worth $2,710,905,000 after purchasing an additional 1,241,587 shares during the period. 70.23% of the stock is currently owned by institutional investors.

Key AbbVie News

Here are the key news stories impacting AbbVie this week:

• Positive Sentiment: AbbVie’s third-quarter results beat expectations, with revenue of $17.4 billion, and the company raised its full-year adjusted earnings outlook. The earnings report has strengthened the growth case for the shares. AbbVie stock climbs as Q3 earnings fuel growth case
• Positive Sentiment: A licensing agreement with Nxera Pharma for an EP4 agonist gives AbbVie another potential inflammatory bowel disease treatment candidate. The deal may add to its pipeline as investors assess the durability of its newer growth drivers. Nxera licenses EP4 agonist to AbbVie
• Positive Sentiment: AbbVie recently reached a fresh high following its earnings beat and a dividend increase, while analysts remain broadly optimistic. This supports investor interest in the stock as a defensive healthcare name. AbbVie’s new growth engines face another test
• Negative Sentiment: AbbVie’s shares have already climbed substantially and are near their 52-week high, leaving less room for disappointment. Humira’s decline also means the company must continue demonstrating that newer products can sustain growth. The one thing to settle before buying AbbVie stock

Insider Activity

In related news, EVP Nicholas Donoghoe sold 32,710 shares of the stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $250.00, for a total transaction of $8,177,500.00. Following the sale, the executive vice president owned 74,430 shares of the company's stock, valued at approximately $18,607,500. This represents a 30.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.06% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on ABBV shares. Bank of America reiterated a "buy" rating on shares of AbbVie in a research note on Tuesday, September 8th. Weiss Ratings raised AbbVie from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, October 8th. Piper Sandler increased their price target on AbbVie from $298.00 to $303.00 and gave the stock an "overweight" rating in a research note on Thursday, August 20th. Citigroup increased their price target on AbbVie from $230.00 to $260.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 15th. Finally, Argus lifted their price objective on AbbVie from $250.00 to $270.00 in a report on Tuesday, August 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, AbbVie has an average rating of "Moderate Buy" and an average target price of $297.46.

AbbVie Stock Up 1.1%

ABBV traded up $3.27 on Friday, hitting $291.51. The company's stock had a trading volume of 5,039,501 shares, compared to its average volume of 5,346,511. The company's 50 day simple moving average is $271.98 and its 200-day simple moving average is $239.04. The firm has a market cap of $515.03 billion, a P/E ratio of 50.17, a price-to-earnings-growth ratio of 1.31 and a beta of 0.20. AbbVie Inc. has a 12 month low of $190.75 and a 12 month high of $302.93.

AbbVie (NYSE:ABBV - Get Free Report) last released its quarterly earnings data on Friday, October 30th. The company reported $3.82 earnings per share for the quarter, beating analysts' consensus estimates of $3.73 by $0.09. AbbVie had a net margin of 15.67% and a negative return on equity of 435.41%. The business had revenue of $17.40 billion during the quarter, compared to analyst estimates of $17.32 billion. During the same period in the previous year, the business earned $1.86 EPS. AbbVie's revenue was up 10.3% compared to the same quarter last year. Equities analysts predict that AbbVie Inc. will post 13.99 earnings per share for the current fiscal year.

AbbVie Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, February 16th. Stockholders of record on Friday, January 15th will be given a $1.82 dividend. This represents a $7.28 annualized dividend and a dividend yield of 2.5%. This is a boost from AbbVie's previous quarterly dividend of $1.73. The ex-dividend date is Friday, January 15th. AbbVie's dividend payout ratio (DPR) is presently 119.10%.

AbbVie Company Profile

AbbVie is a biopharmaceutical company that discovers, develops and markets medicines for a range of serious health conditions. Its research and product portfolio spans immunology, oncology, neuroscience and other therapeutic areas.

Key products include the immunology medicines Skyrizi and Rinvoq, cancer treatments such as Imbruvica and Venclexta, and neuroscience therapies including Botox and Vraylar. Through its Allergan acquisition, AbbVie also offers aesthetics products such as Botox Cosmetic and Juvéderm.

AbbVie was established in 2013 as a spin-off from Abbott Laboratories and is headquartered in North Chicago, Illinois.

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