Traders Buy AbbVie (ABBV) on Weakness Following Analyst Downgrade
Investors purchased shares of AbbVie Inc. (NYSE:ABBV) on weakness during trading on Thursday after Goldman Sachs Group downgraded the stock from a conviction-buy rating to a buy rating. $296.53 million flowed into the stock on the tick-up and $184.05 million flowed out of the stock on the tick-down, for a money net flow of $112.48 million into the stock. Of all companies tracked, AbbVie had the 6th highest net in-flow for the day. AbbVie traded down ($2.46) for the day and closed at $103.14
ABBV has been the topic of several other research reports. Argus raised their price target on shares of AbbVie from $120.00 to $145.00 and gave the company a “buy” rating in a report on Friday, February 2nd. Zacks Investment Research downgraded shares of AbbVie from a “buy” rating to a “hold” rating in a research report on Tuesday, March 20th. BMO Capital Markets downgraded shares of AbbVie from a “market perform” rating to an “underperform” rating and lowered their price objective for the company from $125.86 to $84.00 in a research report on Monday, January 29th. They noted that the move was a valuation call. Bank of America set a $120.00 price objective on shares of AbbVie and gave the company a “hold” rating in a research report on Monday, March 26th. Finally, Barclays lowered their price objective on shares of AbbVie from $120.00 to $102.00 and set an “equal weight” rating for the company in a research report on Thursday, April 5th. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating, eight have given a buy rating and two have assigned a strong buy rating to the company’s stock. AbbVie currently has an average rating of “Buy” and an average target price of $116.20.
In other news, CFO William J. Chase sold 70,928 shares of the firm’s stock in a transaction that occurred on Thursday, March 1st. The shares were sold at an average price of $117.18, for a total transaction of $8,311,343.04. Following the completion of the sale, the chief financial officer now owns 203,391 shares of the company’s stock, valued at $23,833,357.38. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Carlos Alban sold 83,574 shares of the firm’s stock in a transaction that occurred on Thursday, March 1st. The stock was sold at an average price of $114.49, for a total transaction of $9,568,387.26. Following the sale, the executive vice president now directly owns 133,026 shares of the company’s stock, valued at approximately $15,230,146.74. The disclosure for this sale can be found here. Insiders have sold 210,205 shares of company stock valued at $24,466,228 in the last three months. Corporate insiders own 0.07% of the company’s stock.
The firm has a market capitalization of $167.57 billion, a P/E ratio of 18.05, a price-to-earnings-growth ratio of 1.00 and a beta of 1.59. The company has a current ratio of 1.20, a quick ratio of 1.10 and a debt-to-equity ratio of 8.70.
AbbVie (NYSE:ABBV) last released its quarterly earnings data on Thursday, April 26th. The company reported $1.87 EPS for the quarter, topping analysts’ consensus estimates of $1.79 by $0.08. The firm had revenue of $7.93 billion during the quarter, compared to the consensus estimate of $7.60 billion. AbbVie had a net margin of 21.55% and a return on equity of 186.47%. The firm’s revenue was up 21.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.28 earnings per share. research analysts predict that AbbVie Inc. will post 7.8 earnings per share for the current fiscal year.
AbbVie declared that its board has approved a share repurchase program on Thursday, February 15th that allows the company to repurchase $10.00 billion in shares. This repurchase authorization allows the company to reacquire shares of its stock through open market purchases. Shares repurchase programs are usually an indication that the company’s board of directors believes its stock is undervalued.
AbbVie Inc discovers, develops, manufactures, and sells pharmaceutical products worldwide. The company offers HUMIRA, a biologic therapy administered as a subcutaneous injection to treat autoimmune diseases; IMBRUVICA, an oral therapy for the treatment of patients with chronic lymphocytic leukemia; and VIEKIRA PAK, an interferon-free therapy, with or without ribavirin, for the treatment of adults with genotype 1 chronic hepatitis C.
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