AbbVie (NYSE:ABBV) Shares Up 2.9% – Still a Buy?

AbbVie Inc. (NYSE:ABBV)’s share price traded up 2.9% during mid-day trading on Wednesday. The stock traded as high as $295.40 and last traded at $294.1520. Approximately 8,407,818 shares changed hands during trading, an increase of 32% from the average daily volume of 6,347,137 shares. The stock had previously closed at $286.00.

Trending Headlines about AbbVie

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

Wall Street Analyst Weigh In

ABBV has been the topic of several recent analyst reports. 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. Oppenheimer raised their price target on shares of AbbVie from $244.00 to $258.00 and gave the stock a “neutral” rating in a report on Monday, August 3rd. Erste Group Bank raised shares of AbbVie from a “hold” rating to a “buy” rating in a research report on Wednesday, August 5th. Morgan Stanley upped their price objective on AbbVie from $310.00 to $346.00 and gave the company an “overweight” rating in a report on Monday. Finally, Leerink Partners increased their price objective on AbbVie from $309.00 to $342.00 and gave the stock an “outperform” rating in a research report on Monday. One investment 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 currently has an average rating of “Moderate Buy” and an average price target of $297.46.

AbbVie Stock Performance

The business’s 50 day moving average price is $271.98 and its 200-day moving average price is $239.04. The firm has a market capitalization of $515.27 billion, a PE ratio of 50.17, a P/E/G ratio of 1.34 and a beta of 0.20.

AbbVie (NYSE:ABBV) last posted its quarterly earnings data on Friday, October 30th. The company reported $3.82 earnings per share for the quarter, topping analysts’ consensus estimates of $3.73 by $0.09. AbbVie had a net margin of 15.67% and a negative return on equity of 450.55%. The firm had revenue of $17.40 billion during the quarter, compared to analysts’ expectations of $17.32 billion. During the same quarter last year, the company posted $1.86 EPS. The firm’s quarterly revenue was up 10.3% on a year-over-year basis. As a group, analysts anticipate that AbbVie Inc. will post 13.99 earnings per share for the current year.

AbbVie Increases Dividend

The firm also recently disclosed 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 dividend on an annualized basis and a dividend yield of 2.5%. This is an increase 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%.

Insiders Place Their Bets

In other AbbVie news, EVP Nicholas Donoghoe sold 32,710 shares of the 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 sale, the executive vice president directly owned 74,430 shares in the company, valued at $18,607,500. This represents a 30.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.06% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AbbVie

Institutional investors have recently modified their holdings of the business. Financial Freedom LLC acquired a new stake in shares of AbbVie in the third quarter worth approximately $29,000. Burk Holdings LLC acquired a new position in AbbVie during the second quarter worth approximately $30,000. Marquette Asset Management LLC raised its stake in AbbVie by 52.2% during the second quarter. Marquette Asset Management LLC now owns 140 shares of the company’s stock worth $35,000 after purchasing an additional 48 shares during the period. Principia Wealth Advisory LLC raised its stake in AbbVie by 38.9% during the second quarter. Principia Wealth Advisory LLC now owns 157 shares of the company’s stock worth $40,000 after purchasing an additional 44 shares during the period. Finally, IMG Wealth Management Inc. raised its stake in AbbVie by 3,060.0% during the second quarter. IMG Wealth Management Inc. now owns 158 shares of the company’s stock worth $40,000 after purchasing an additional 153 shares during the period. Institutional investors and hedge funds own 70.23% of the company’s stock.

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.