AbbVie (NYSE:ABBV) Stock Price Down 2.2% – Here’s Why

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

Key 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

Wall Street Analyst Weigh In

Several research firms recently commented on ABBV. Canaccord Genuity Group upped their target price on AbbVie from $290.00 to $338.00 and gave the company a “buy” rating in a research note on Monday. Wolfe Research upgraded AbbVie from a “peer perform” rating to an “outperform” rating and lifted their price target for the company from $235.00 to $300.00 in a report on Thursday, August 13th. Oppenheimer lifted their price target on AbbVie from $244.00 to $258.00 and gave the company a “neutral” rating in a report on Monday, August 3rd. JPMorgan Chase & Co. upped their price objective on shares of AbbVie from $285.00 to $300.00 and gave the company an “overweight” rating in a research note on Thursday, October 8th. Finally, BNP Paribas Exane increased their price objective on shares of AbbVie from $218.00 to $247.00 and gave the stock a “neutral” rating in a report on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, AbbVie presently has an average rating of “Moderate Buy” and a consensus target price of $297.46.

AbbVie Price Performance

The company has a market cap of $509.68 billion, a price-to-earnings ratio of 49.65, a P/E/G ratio of 1.30 and a beta of 0.20. The company’s 50-day simple moving average is $270.80 and its 200-day simple moving average is $238.28.

AbbVie (NYSE:ABBV) last announced its earnings results on Friday, October 30th. The company reported $3.82 earnings per share for the quarter, beating the consensus estimate of $3.73 by $0.09. AbbVie had a negative return on equity of 435.41% and a net margin of 15.67%. The company had revenue of $17.40 billion during the quarter, compared to the consensus estimate of $17.32 billion. During the same period last year, the firm earned $1.86 earnings per share. The company’s revenue was up 10.3% on a year-over-year basis. Equities analysts predict that AbbVie Inc. will post 13.99 EPS for the current fiscal 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 paid a dividend of $1.82 per share. 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 is Friday, January 15th. AbbVie’s dividend payout ratio (DPR) is currently 125.30%.

Insider Activity

In related news, EVP Nicholas Donoghoe sold 32,710 shares of AbbVie stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $250.00, for a total value 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 trade represents a 30.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 0.06% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Corient Private Wealth LP bought a new position in shares of AbbVie during the 2nd quarter valued at about $559,736,000. Legal & General Group Plc bought a new stake in shares of AbbVie in the 2nd quarter worth approximately $2,905,952,000. Jupiter Topco LLC bought a new stake in shares of AbbVie in the 2nd quarter worth approximately $1,560,354,000. Canada Pension Plan Investment Board acquired a new stake in AbbVie during the second quarter valued at approximately $817,473,000. Finally, The Manufacturers Life Insurance Company acquired a new stake in AbbVie during the second quarter valued at approximately $655,268,000. 70.23% of the stock is owned by institutional investors and hedge funds.

About AbbVie

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.