South Street Advisors LLC Reduces Holdings in AbbVie Inc. (NYSE:ABBV)

South Street Advisors LLC has decreased its stake in AbbVie Inc. (NYSE:ABBV) by 8.9% during the fourth quarter, based on its latest report filed with the Securities and Exchange Commission (SEC). After selling 1,247 shares within the quarter, the firm now holds 12,714 shares of AbbVie, which is valued at approximately $2,259,000.

Several other institutional investors and hedge funds have also adjusted their positions in AbbVie recently. RPg Family Wealth Advisory LLC acquired a new position in AbbVie during the third quarter, estimated to be around $28,000. In the fourth quarter, Fiduciary Advisors Inc. invested about $29,000 in AbbVie, while Promus Capital LLC bought shares worth approximately $30,000. Additionally, Bradley & Co. Private Wealth Management LLC made a new investment in AbbVie valued at about $31,000, and Retirement Wealth Solutions LLC also entered a new position worth around $35,000. Collectively, over 70.23% of AbbVie’s stock is held by institutional investors and hedge funds.

Current Stock Performance

On Tuesday, the stock opened at $214.45. AbbVie has a market capitalization of $378.57 billion, a P/E ratio of 89.35, and a PEG ratio of 1.62. The company shows a current ratio of 0.66, a quick ratio of 0.55, and a debt-to-equity ratio of 17.94. The company's 50-day simple moving average is $191.78, while its 200-day moving average stands at $188.18. Over the past year, AbbVie has experienced a trading range with a low of $153.58 and a high of $218.66.

Earnings Report and Future Dividend

AbbVie recently disclosed its earnings results for the quarter ending January 31st. The company reported earnings per share (EPS) of $2.16, which was below analysts' predictions of $2.98 by $0.82. AbbVie recorded a net margin of 7.59% and a return on equity of 296.28%. In the previous year’s quarter, the EPS was $2.79. Analysts predict that AbbVie will achieve an EPS of 12.31 for the current fiscal year.

Moreover, AbbVie has announced a quarterly dividend of $1.64 per share, which is set to be distributed on May 15th to shareholders who are on record as of April 15th. The ex-dividend date is also established as April 15th. This amounts to an annualized dividend of $6.56, indicating a yield of 3.06%. Notably, AbbVie’s payout ratio is high at 273.33%.

Analysts' Perspective

Recent updates from various brokerages regarding AbbVie indicate a mixed outlook. Leerink Partners upgraded the stock from a “hold” to a “strong buy” rating in a note dated November 22nd. Also, Bank of America raised its price target for AbbVie from $200.00 to $223.00, maintaining a “neutral” rating. Citigroup also adjusted its target from $205.00 to $215.00, granting a “buy” rating. Raymond James reaffirmed an “outperform” rating with a price target increase from $218.00 to $220.00. However, Daiwa Capital Markets downgraded AbbVie from “outperform” to “neutral,” setting a target price of $180.00. Overall, five analysts rate AbbVie as a hold, while seventeen rate it as a buy, and two have given a strong buy rating. As per analysts on MarketBeat.com, the stock has an average rating of “Moderate Buy” along with an average price target of $211.45.

Insider Transactions

In recent insider trading news, executive vice president Timothy J. Richmond sold 29,917 shares of AbbVie on February 26th, with an average sales price of $202.90, resulting in a total transaction of $6,070,159.30. After this sale, he now owns about 44,284 shares valued at approximately $8,985,223.60, which is a 40.32% reduction in his holdings. Additionally, SVP Kevin K. Buckbee sold 18,944 shares on the same day at an average price of $203.41, totaling $3,853,399.04 sold, leaving him with 11,496 shares valued at around $2,338,401.36, marking a 62.23% decrease in ownership. In total, over the last ninety days, insiders have sold 54,639 shares worth $11,067,025, while insiders own about 0.25% of the company's stock.

About AbbVie Inc.

AbbVie Inc. is a global biopharmaceutical company engaged in discovering, developing, manufacturing, and selling a variety of pharmaceuticals. The company's portfolio includes well-known products such as Humira, which treats autoimmune and intestinal Behçet's diseases, as well as Skyrizi for moderate to severe plaque psoriasis and other diseases. Other notable treatments include Rinvoq for various forms of arthritis, Imbruvica for certain blood cancers, and Venclexta for treating blood cancers. AbbVie’s broad range of products demonstrates its commitment to addressing diverse medical needs across multiple conditions.

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