Abbott Laboratories (NYSE: ABT) Not A Good Play Anymore?


    BlackRock Fund Advisors has recently announced that it has increased stake in Abbott Laboratories (NYSE:ABT) by 3.95%. After grabbing 87.6 million shares, the institutional investor is now in possession of 3.33 million shares of the Healthcare Company. The new investment brought the stake of investor firm to 4.95% having worth around $8.82 billion. Moreover, SSgA Funds Management, Inc. increased its share by 0.47 million to have a control over 74.56 million shares. And Capital Research & Management Co.. raised its holdings to 0.93 million shares by acquiring 56.71 million shares or 3.20% of the stake.

    Abbott Laboratories (ABT) concluded trading on 08/27/20 at a closing price of $111.29, with 35.69 million shares of worth about $3.97 billion changed hands on the day. Weekly performance of the stock remained positive as price took a surge of 9.51% during that period and on Thursday the price saw a gain of about 7.85%. Currently the company’s common shares owned by public are about 1.77B shares, out of which, 1.76B shares are available for trading.

    A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 20 analysts are covering the ABT stock and their offered price forecasts bring an average price target of $110.47. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $130.00 and could fall to a lowest price of $94.00. Analysts also issued an outlook of 1.90 for the Abbott Laboratories stock for next 12 months. The stock’s current price level is -4.25% below of average price target set by the analysts, while a dip to estimated low would result in loss of -18.39 for the stock. However, touching the estimated high of $130.00 would mean a gain of 14.39% for the stock.

    According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 145 times over the past 12 months. They bought 1,480,647 shares in 60 of the transactions. In 85 selling transactions, insiders dumped 1,243,206 shares.

    Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and American Funds Investment Company are the top 3 mutual funds which are holding stakes in Abbott Laboratories Vanguard Total Stock Market Index is currently holding 50.27 million shares of worth totaling $5.06 billion. The company recently came selling -0.15 million shares which brought its stake up to 2.84% of the company’s outstanding shares. Vanguard 500 Index Fund sold -0.22 million shares, after which its hold over company’s outstanding shares shrunk to 2.06%, leaving 36.48 million shares with the mutual fund that have a worth of about $3.67 billion. American Funds Investment Company, after selling 30.72 million shares, have now control over 1.74% of the stake in the company. It holds -0.42 million shares of worth $3.09 billion.

    Abbott Laboratories (NYSE: ABT) started trading at $111.01, above $7.82 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $111.29, or with a gain of 7.85%. Stock saw a price change of 9.51% in past 5 days and over the past one month there was a price change of 8.55%. Year-to-date (YTD), ABT shares are showing a performance of 28.13% which increased to 32.14% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $61.61 but also hit the highest price of $103.29 during that period. While comparing its average daily trading volume of 5.05 million shares, we see that about 35.69 million changed hands on the day. The stock is currently trading 10.08% above its 20-day simple moving average (SMA20), while that difference is up 14.73% for SMA50 and it goes to 24.99% higher than SMA200.

    BlackRock Fund Advisors acquired 87.6 million shares of Abbott Laboratories having value of about $8.82 billion. Data submitted at the U.S SEC by BlackRock Fund Advisors revealed that the firm now holds 3.33 million shares in the company valued at close to $370515126.04, or have control over 3.95% stake in the company. Abbott Laboratories (NYSE: ABT) currently have 1.77B outstanding shares and institutions hold larger chunk of about 75.60% of that. Holding of mutual funds in the company is about 4.14% while other institutional holders and individual stake holders have control over 41.11% and 34.20% of the stake respectively.

    The stock has a current market capitalization of $195.56B and its 3Y-monthly beta is at 0.94. PE ratio of stock for trailing 12 months is 64.37, while it has posted earnings per share of $1.73 in the same period. Its PEG reads 5.58 and has Quick Ratio of 1.10 while making debt-to-equity ratio of 0.64. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for ABT, volatility over the week remained 2.33% while standing at 1.80% over the month.

    Analysts are in expectations that Abbott Laboratories (ABT) stock would likely to be making an EPS of $0.88 in the current quarter, while forecast for next quarter ESPS is $1.15 and it is $3.89 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.84 which is $0.96 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.84 in the same quarter a year ago. Stock’s fiscal year EPS is expected to rise by 45.20% while it is estimated to increase by 20.05% in next year. EPS is likely to shrink at an annualized rate of 11.53% for next 5-years, compared to annual growth of 12.40% made by the stock over the past 5-years.

    Analysts at 20 brokerage firms have issued recommendations for the Abbott Laboratories (ABT)’s stock and average of those rates the stock at a “Strong Buy” and assign it a score of 1.90. Out of those 20 Wall Street analysts, 13 recommended a “Buy” rating, while 3 were in favor recommending the stock as a “Hold” and 1 analyst recommended the stock as “Sell”.

    Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Goldman on June 01, 2020 offering a Sell rating for the stock and assigned a target price of $84 to it. Coverage by Citigroup stated Abbott Laboratories (ABT) stock as a Buy in their note to investors on March 05, 2020, suggesting a price target of $96 for the stock. On February 13, 2020, Goldman Initiated their recommendations, while on February 06, 2020, BTIG Research Resumed their ratings for the stock with a price target of. Stock get a Neutral rating from Guggenheim on January 02, 2020.


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