Uncovering Institutional Buying In AbbVie Inc. (NYSE: ABBV)


The Vanguard Group, Inc. recently announced the acquisition of new stake in AbbVie Inc. (NYSE:ABBV). The institutional investor has increased its shareholding in the Healthcare company by 0.03% to 138.6 million shares with purchase of 47091.0 shares. This fresh investment now brings its stake to 7.87% valued currently at $13.15 billion. In addition, Northern Trust Investments, Inc.(.. raised its holdings by 0.29 million to 24.15 million shares. And JPMorgan Investment Management, I.. has lifted its position by 18.23% or 2.96 million shares – to 19.2 million shares.

With over 6.7 million AbbVie Inc. (ABBV) shares trading Tuesday and a closing price of $94.06 on the day, the dollar volume was approximately $630.15 million. The shares have shown a negative weekly performance of -1.66% and its price on 08/25/20 lost nearly -0.48%. Currently, there are 1.76B common shares owned by the public and among those 1.76B shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 17 analysts who have offered their price forecasts for ABBV have a consensus price objective of $110.33. The analysts have set the share’s price value over the next 12 months at a high of $127.00 and a low of $96.00 should the stock experience a downside. Incidentally, analysts’ outlook for the AbbVie Inc. stock is 1.90 for the next 12 months. The average price target is 14.01% above its last price level and an upside to the estimated low will see the stock gain 2.02% over that period. But an upside of 25.94% will see the stock hit the forecast high price target while mean target price for the stock is $110.00.

Insiders at the company have transacted a total of 103 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 75 of these insider trades were purchases, accounting for 794,547 shares. Insider sales of the common stock occurred on 28 occasions, with total insider shares sold totaling 510,481 shares.

The top 3 mutual fund holders in AbbVie Inc. are Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and Capital Income Builder. Vanguard Total Stock Market Index owns 50.1 million shares of the company’s stock, all valued at over $4.75 billion. The company sold -0.13 million shares recently to bring their total holdings to about 2.84% of the shares outstanding. Vanguard 500 Index Fund sold -0.22 million shares to see its total holdings shrink to 36.34 million shares valued at over $3.45 billion and representing 2.06% of the shares outstanding. Capital Income Builder bought 4.76 million shares to bring its total holdings to over 22.58 million shares at a value of $2.14 billion. Capital Income Builder now owns shares totaling to 1.28% of the shares outstanding.

Shares of AbbVie Inc. (NYSE: ABBV) opened at $94.21, down -$0.3 from a prior closing price of $94.51. However, the script later closed the day at $94.06, down -0.48%. The company’s stock has a 5-day price change of -1.66% and 4.53% over the past three months. ABBV shares are trading 6.23% year to date (YTD), with the 12-month market performance up to 41.53% higher. It has a 12-month low price of $62.55 and touched a high of $101.28 over the same period. Currently, 6.7 million shares have been traded, compared to an average intraday trading volume of 7.50 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -0.81%, -2.57%, and 6.02% respectively.

Institutional ownership of AbbVie Inc. (NYSE: ABBV) shares accounts for 70.70% of the company’s 1.76B shares outstanding. Mutual fund holders own 34.20%, while other institutional holders and individual stakeholders account for 36.53% and 0.12% respectively.

It has a market capitalization of $166.60B and a beta (3y monthly) value of 0.74. The stock’s trailing 12-month PE ratio is 20.69, while the earnings-per-share (ttm) stands at $4.55. The company has a PEG of 2.50 and a Quick Ratio of 0.70 with the debt-to-equity ratio at 5.94. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.24% over the week and 1.64% over the month.

Analysts forecast that AbbVie Inc. (ABBV) will achieve an EPS of $2.76 for the current quarter, $2.9 for the next quarter and $12.11 for 2021. The lowest estimate earnings-per-share for the quarter is $2.73 while analysts give the company a high EPS estimate of $2.87. Comparatively, EPS for the current quarter was $2.33 a year ago. Earnings per share for the fiscal year are expected to increase by 42.30%, and 15.85% over the next financial year. EPS should shrink at an annualized rate of 8.27% over the next five years, compared to 36.80% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 17 brokerage firm advisors rate AbbVie Inc. (ABBV) as a “Strong Buy” at a consensus score of 1.90. Specifically, 11 Wall Street analysts polled rate the stock as a buy, while 5 of the 17 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the ABBV, a number of firms have released research notes about the stock. Atlantic Equities stated their Overweight rating for the stock in a research note on June 23, 2020, with the firm’s price target at $115. Wolfe Research coverage for the AbbVie Inc. (ABBV) stock in a research note released on June 09, 2020 offered a Outperform rating with a price target of. Argus was of a view on June 02, 2020 that the stock is Buy, while BofA/Merrill gave the stock Neutral rating on May 18, 2020, issuing a price target of $95. JP Morgan on their part issued Overweight rating on May 12, 2020.


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