According to Zacks, “Abbott has been reshaping its portfolio through strategic acquisitions/divestitures for long term growth. In order to focus on its key areas – cardiovascular devices and diagnostics – Abbott has inked a deal to divest its vision care business, Medical Optics, to J&J. Moreover, the Alere acquisition should boost the company’s diagnostics business, while the St. Jude Medical buyout will complement its cardiovascular devices business and strengthen its long-term growth potential. Realignment of the EPD division through acquisitions in Latin America and Russia, along with business divestitures in developed markets, has positioned the company advantageously for the coming quarters. However, headwinds in the form of currency movements and weakness in the nutrition business in China continue to be a matter of concern.”
Several other research firms also recently issued reports on ABT. Bank of America Corp. reiterated a buy rating on shares of Abbott Laboratories in a research note on Monday, September 19th. Royal Bank Of Canada reiterated an outperform rating and set a $48.00 price objective on shares of Abbott Laboratories in a research note on Monday, September 19th. Barclays PLC reiterated an overweight rating and set a $48.00 price objective on shares of Abbott Laboratories in a research note on Tuesday, July 12th. Jefferies Group boosted their price objective on shares of Abbott Laboratories from $44.00 to $45.00 and gave the stock a buy rating in a research note on Tuesday, June 14th. Finally, Argus reiterated a buy rating and set a $55.00 price objective on shares of Abbott Laboratories in a research note on Thursday, July 28th. Seven equities research analysts have rated the stock with a hold rating, sixteen have assigned a buy rating and one has assigned a strong buy rating to the stock. The stock currently has a consensus rating of Buy and an average target price of $47.02.
Shares of Abbott Laboratories (NYSE:ABT) opened at 42.97 on Tuesday. Abbott Laboratories has a 52 week low of $36.00 and a 52 week high of $46.38. The firm has a market capitalization of $63.17 billion, a price-to-earnings ratio of 28.36 and a beta of 0.87. The company’s 50-day moving average is $42.31 and its 200 day moving average is $41.35.
Abbott Laboratories (NYSE:ABT) last issued its quarterly earnings results on Wednesday, July 20th. The healthcare product maker reported $0.55 EPS for the quarter, topping the consensus estimate of $0.53 by $0.02. Abbott Laboratories had a net margin of 11.08% and a return on equity of 15.11%. The firm earned $5.30 billion during the quarter, compared to analyst estimates of $5.24 billion. During the same quarter in the prior year, the business posted $0.52 earnings per share. Abbott Laboratories’s revenue for the quarter was up 3.2% compared to the same quarter last year. Analysts anticipate that Abbott Laboratories will post ($0.01) EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, November 15th. Shareholders of record on Friday, October 14th will be issued a dividend of $0.26 per share. The ex-dividend date is Wednesday, October 12th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 2.42%. Abbott Laboratories’s dividend payout ratio (DPR) is 68.87%.
In other Abbott Laboratories news, Chairman Miles D. White bought 242,547 shares of the company’s stock in a transaction on Monday, July 25th. The shares were bought at an average cost of $43.18 per share, with a total value of $10,473,179.46. Following the completion of the acquisition, the chairman now owns 2,010,517 shares of the company’s stock, valued at $86,814,124.06. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Stephen R. Fussell sold 41,500 shares of the stock in a transaction on Thursday, July 28th. The stock was sold at an average price of $45.00, for a total transaction of $1,867,500.00. Following the sale, the insider now directly owns 196,467 shares in the company, valued at $8,841,015. The disclosure for this sale can be found here. Company insiders own 0.26% of the company’s stock.
Several hedge funds have recently modified their holdings of the company. Nordea Investment Management AB boosted its stake in shares of Abbott Laboratories by 13.5% in the second quarter. Nordea Investment Management AB now owns 3,529,762 shares of the healthcare product maker’s stock worth $138,755,000 after buying an additional 420,435 shares during the period. Stoneridge Investment Partners LLC acquired a new stake in shares of Abbott Laboratories during the second quarter worth $11,444,000. National Pension Service boosted its stake in shares of Abbott Laboratories by 4.2% in the first quarter. National Pension Service now owns 766,747 shares of the healthcare product maker’s stock worth $32,073,000 after buying an additional 30,857 shares during the period. MAI Capital Management boosted its stake in shares of Abbott Laboratories by 2.5% in the second quarter. MAI Capital Management now owns 328,683 shares of the healthcare product maker’s stock worth $12,921,000 after buying an additional 8,170 shares during the period. Finally, Panagora Asset Management Inc. boosted its stake in shares of Abbott Laboratories by 41.0% in the first quarter. Panagora Asset Management Inc. now owns 1,536,883 shares of the healthcare product maker’s stock worth $64,288,000 after buying an additional 446,670 shares during the period. 73.03% of the stock is currently owned by institutional investors.
About Abbott Laboratories
Abbott Laboratories (Abbott) is engaged in the discovery, development, manufacture and sale of a line of healthcare products. The Company operates in four business segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products and Vascular Products. The Established Pharmaceutical Products segment includes the international sales of a line of branded generic pharmaceutical products.
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