AbbVie (NYSE:ABBV) Stock Price Down 2.2% - Should You Sell?

Key Points

• AbbVie shares fell 2.2% to $288.48 in Thursday trading, with volume 24% above its average.
• The company beat Q3 estimates, reporting $17.4 billion in revenue and adjusted EPS of $3.82, and raised its full-year adjusted earnings outlook.
• Analyst sentiment remains broadly positive: AbbVie has a consensus “Moderate Buy” rating and an average price target of $297.46; the company also increased its quarterly dividend to $1.82 per share.

AbbVie Inc. (NYSE:ABBV - Get Free Report)'s stock price was down 2.2% on Thursday. The company traded as low as $287.71 and last traded at $288.4750. Approximately 7,879,817 shares traded hands during mid-day trading, an increase of 24% from the average session volume of 6,343,048 shares. The stock had previously closed at $294.83.

More AbbVie News

Here are the key news stories impacting AbbVie this week:

• Positive Sentiment: Strong Q3 results and higher guidance: AbbVie reported $17.4 billion in revenue and adjusted EPS of $3.82, topping consensus estimates, and raised its full-year adjusted earnings outlook. The results reinforce its growth case, though expectations are high after a substantial recent rally. Article: AbbVie Stock Climbs As Q3 Earnings Fuel Growth Case
• Positive Sentiment: Pipeline expansion through Nxera deal: AbbVie secured global rights to an experimental oral IBD drug, with $100 million upfront and up to $1.37 billion in potential milestones, plus royalties. The candidate could broaden AbbVie’s IBD portfolio, but it is investigational and its commercial potential remains uncertain. Article: AbbVie pens $1.4B deal for deprioritized IBD drug from Nxera
• Positive Sentiment: Analyst sentiment remains favorable: Recent coverage describes Wall Street analysts as optimistic, with several firms reported to have raised price targets or reiterated expectations for further gains. Article: Are Wall Street Analysts Bullish on AbbVie Stock?
• Neutral Sentiment: Investment and early-stage study updates: AbbVie is expanding its Oxford R&D facility as part of an investment exceeding £120 million. It also updated early-stage drug-interaction and aesthetic-injection studies, but the reports provide limited evidence of near-term revenue impact. Article: AbbVie expands Oxford R&D facility
• Negative Sentiment: Oncology pipeline setback: AbbVie discontinued a Phase 2 solid-tumor drug program after seeing limited benefit, removing one candidate from its pipeline. Article: AbbVie abandons phase 2 solid tumor drug

Analysts Set New Price Targets

ABBV has been the subject of several research analyst reports. BMO Capital Markets set a $315.00 target price on AbbVie in a research note on Wednesday. HSBC boosted their price objective on AbbVie from $300.00 to $315.00 and gave the stock a "buy" rating in a research note on Thursday, September 10th. Morgan Stanley upped their price objective on shares of AbbVie from $310.00 to $346.00 and gave the company an "overweight" rating in a report on Monday. Piper Sandler boosted their target price on shares of AbbVie from $298.00 to $303.00 and gave the company an "overweight" rating in a report on Thursday, August 20th. Finally, BNP Paribas Exane lifted their price target on shares of AbbVie from $218.00 to $247.00 and gave the company a "neutral" rating in a research report on Tuesday, August 11th. One analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and six have given a Hold rating to the company. According to MarketBeat, AbbVie presently has an average rating of "Moderate Buy" and a consensus price target of $297.46.

AbbVie Price Performance

The stock has a 50 day moving average price of $270.80 and a two-hundred day moving average price of $238.28. The firm has a market capitalization of $509.68 billion, a price-to-earnings ratio of 49.65, a PEG ratio of 1.30 and a beta of 0.20.

AbbVie (NYSE:ABBV - Get Free Report) last posted its earnings results on Friday, October 30th. The company reported $3.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.73 by $0.09. The firm had revenue of $17.40 billion for the quarter, compared to analyst estimates of $17.32 billion. AbbVie had a negative return on equity of 435.41% and a net margin of 15.67%. AbbVie's revenue was up 10.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.86 EPS. As a group, research analysts expect that AbbVie Inc. will post 13.99 earnings per share for the current fiscal year.

AbbVie Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, February 16th. Investors of record on Friday, January 15th will be issued a $1.82 dividend. This represents a $7.28 annualized dividend and a yield of 2.5%. This is a positive change from AbbVie's previous quarterly dividend of $1.73. The ex-dividend date of this dividend is Friday, January 15th. AbbVie's dividend payout ratio is 125.30%.

Insider Transactions at AbbVie

In other AbbVie news, EVP Nicholas Donoghoe sold 32,710 shares of the business's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $250.00, for a total transaction of $8,177,500.00. Following the completion of the transaction, the executive vice president owned 74,430 shares in the company, valued at $18,607,500. The trade was a 30.53% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.06% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Ranch Capital Advisors Inc. lifted its holdings in shares of AbbVie by 37.0% in the first quarter. Ranch Capital Advisors Inc. now owns 14,888 shares of the company's stock valued at $3,238,000 after purchasing an additional 4,017 shares in the last quarter. Capital Advisors Inc. OK increased its stake in shares of AbbVie by 11.2% during the 2nd quarter. Capital Advisors Inc. OK now owns 447,129 shares of the company's stock worth $112,516,000 after purchasing an additional 45,132 shares in the last quarter. Danica Pension Livsforsikringsaktieselskab purchased a new position in shares of AbbVie during the 2nd quarter worth approximately $23,557,000. Wedge Capital Management L L P NC raised its position in shares of AbbVie by 7.5% during the 2nd quarter. Wedge Capital Management L L P NC now owns 134,579 shares of the company's stock worth $33,865,000 after purchasing an additional 9,380 shares during the last quarter. Finally, State Street Corp raised 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 worth $20,784,646,000 after purchasing an additional 1,379,232 shares during the last quarter. Hedge funds and other institutional investors own 70.23% of the company's stock.

AbbVie Company Profile

AbbVie Inc NYSE: ABBV is a global biopharmaceutical company that discovers, develops and commercializes medicines and other healthcare products. Its portfolio focuses on immunology, oncology, neuroscience, aesthetics and eye care, serving patients and healthcare providers in markets around the world.

The company's key products include immunology medicines such as Skyrizi and Rinvoq; neuroscience treatments including Vraylar, Ubrelvy and Qulipta; and oncology products such as Imbruvica and Venclexta.

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