AbbVie (NYSE:ABBV) Stock Price Down 2.2% – Should You Sell?

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

Key Headlines Impacting 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

Several equities research analysts have issued reports on the stock. Argus boosted their price objective on shares of AbbVie from $250.00 to $270.00 in a research note on Tuesday, August 4th. HSBC boosted their price target on AbbVie from $300.00 to $315.00 and gave the stock a “buy” rating in a research report on Thursday, September 10th. Barclays increased their price objective on shares of AbbVie from $300.00 to $325.00 and gave the company an “overweight” rating in a research report on Wednesday, October 21st. Erste Group Bank raised shares of AbbVie from a “hold” rating to a “buy” rating in a research report on Wednesday, August 5th. Finally, BMO Capital Markets set a $315.00 price target on shares of AbbVie in a report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $297.46.

AbbVie Stock Up 1.1%

The firm has a market capitalization of $515.03 billion, a price-to-earnings ratio of 50.17, a P/E/G ratio of 1.31 and a beta of 0.20. The stock has a 50 day moving average of $271.98 and a 200 day moving average of $239.04.

AbbVie (NYSE:ABBV) last issued its earnings results on Friday, October 30th. The company reported $3.82 EPS for the quarter, topping 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 analyst estimates of $17.32 billion. During the same quarter last year, the firm earned $1.86 EPS. The business’s revenue was up 10.3% on a year-over-year basis. Analysts predict that AbbVie Inc. will post 13.99 earnings per share for the current year.

AbbVie Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 16th. Investors of record on Friday, January 15th will be given a $1.82 dividend. The ex-dividend date is Friday, January 15th. This represents a $7.28 annualized dividend and a yield of 2.5%. This is a boost from AbbVie’s previous quarterly dividend of $1.73. AbbVie’s payout ratio is 119.10%.

Insider Transactions at AbbVie

In related news, EVP Nicholas Donoghoe sold 32,710 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $250.00, for a total value of $8,177,500.00. Following the completion of the transaction, the executive vice president directly owned 74,430 shares of the company’s stock, valued at $18,607,500. This represents a 30.53% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.06% of the stock is owned by company insiders.

Institutional Trading of AbbVie

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Financial Freedom LLC bought a new position in shares of AbbVie during the 3rd quarter valued at about $29,000. Burk Holdings LLC bought a new stake in shares of AbbVie in the 2nd quarter worth approximately $30,000. Marquette Asset Management LLC lifted its stake in AbbVie by 52.2% during the second quarter. Marquette Asset Management LLC now owns 140 shares of the company’s stock valued at $35,000 after purchasing an additional 48 shares during the last quarter. IMG Wealth Management Inc. boosted its stake in shares of AbbVie by 3,060.0% during the 2nd quarter. IMG Wealth Management Inc. now owns 158 shares of the company’s stock worth $40,000 after acquiring an additional 153 shares in the last quarter. Finally, Principia Wealth Advisory LLC boosted its position in shares of AbbVie by 38.9% in the 2nd quarter. Principia Wealth Advisory LLC now owns 157 shares of the company’s stock valued at $40,000 after purchasing an additional 44 shares during the period. 70.23% of the stock is currently owned by institutional investors.

About AbbVie

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.