Traders Buy AbbVie (ABBV) on Weakness Following Analyst Downgrade

Investors bought 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 equities 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 reports. BMO Capital Markets dropped their target price on shares of AbbVie from $95.00 to $80.00 and set an “underperform” rating on the stock in a report on Friday, March 23rd. Jefferies Group set a $125.00 price objective on shares of AbbVie and gave the company a “buy” rating in a report on Friday, March 23rd. Credit Suisse Group lowered their price objective on shares of AbbVie from $109.00 to $98.10 and set a “neutral” rating on the stock in a report on Friday, March 23rd. Bank of America set a $120.00 price objective on shares of AbbVie and gave the company a “hold” rating in a report on Monday, March 26th. Finally, Morgan Stanley decreased their target price on shares of AbbVie from $131.00 to $110.00 and set an “equal weight” rating for the company in a research note on Monday, April 30th. One analyst has rated the stock with a sell rating, nine have issued a hold rating, eight have given a buy rating and two have assigned a strong buy rating to the company’s stock. AbbVie has an average rating of “Buy” and a consensus target price of $116.20.

In related news, CFO William J. Chase sold 70,928 shares of the business’s stock in a transaction dated Thursday, March 1st. The stock was sold at an average price of $117.18, for a total value of $8,311,343.04. Following the completion of the transaction, 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 legal filing with the SEC, which can be accessed through the SEC website. Also, insider Laura J. Schumacher sold 25,000 shares of the business’s stock in a transaction dated Thursday, March 1st. The stock was sold at an average price of $117.85, for a total value of $2,946,250.00. Following the transaction, the insider now directly owns 123,317 shares of the company’s stock, valued at approximately $14,532,908.45. The disclosure for this sale can be found here. In the last three months, insiders sold 210,205 shares of company stock valued at $24,466,228. 0.07% of the stock is currently owned by company insiders.

Several institutional investors have recently bought and sold shares of ABBV. Truewealth LLC purchased a new stake in AbbVie in the 4th quarter valued at $126,000. Delpha Capital Management LLC bought a new stake in shares of AbbVie during the fourth quarter valued at approximately $131,000. Virtue Capital Management LLC bought a new stake in shares of AbbVie during the fourth quarter valued at approximately $139,000. We Are One Seven LLC bought a new stake in shares of AbbVie during the fourth quarter valued at approximately $148,000. Finally, Trustcore Financial Services LLC bought a new stake in shares of AbbVie during the fourth quarter valued at approximately $148,000. Hedge funds and other institutional investors own 69.48% of the company’s stock.

The company has a market capitalization of $168.57 billion, a price-to-earnings ratio of 18.42, a price-to-earnings-growth ratio of 1.00 and a beta of 1.59. The company has a debt-to-equity ratio of 8.70, a current ratio of 1.20 and a quick ratio of 1.10.

AbbVie (NYSE:ABBV) last posted its quarterly earnings data on Thursday, April 26th. The company reported $1.87 EPS for the quarter, beating analysts’ consensus estimates of $1.79 by $0.08. The company had revenue of $7.93 billion during the quarter, compared to analysts’ expectations of $7.60 billion. AbbVie had a return on equity of 186.47% and a net margin of 21.55%. AbbVie’s revenue for the quarter was up 21.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.28 earnings per share. analysts forecast that AbbVie Inc. will post 7.8 earnings per share for the current fiscal year.

AbbVie announced that its Board of Directors has authorized a stock repurchase program on Thursday, February 15th that allows the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization allows the company to repurchase shares of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its stock is undervalued.

AbbVie Company Profile

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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