Waterloo Capital L.P. has expanded its investment in AbbVie Inc., increasing its holdings by 11.5% during the second quarter of 2023. According to the firm’s recent filing with the Securities and Exchange Commission (SEC), Waterloo Capital now owns 20,619 shares of AbbVie, following the acquisition of an additional 2,119 shares in this reporting period. The value of these holdings reached approximately $3.83 million by the end of the quarter.
This move reflects a broader trend among institutional investors, as several other hedge funds have also adjusted their positions in AbbVie. Brighton Jones LLC, for instance, boosted its stake by 17.4% during the fourth quarter of 2022, now holding 22,912 shares valued at $4.07 million after acquiring an additional 3,401 shares. Similarly, Revolve Wealth Partners LLC raised its holdings by an impressive 72.7%, now owning 7,279 shares worth around $1.29 million after purchasing an additional 3,064 shares.
Additionally, Neo Ivy Capital Management entered the sector with a new stake valued at approximately $188,000. Caliber Wealth Management LLC KS and Private Management Group Inc. also increased their investments, with the latter reporting an ownership of 2,938 shares valued at $616,000 after acquiring an additional 54 shares.
A significant 70.23% of AbbVie’s stock is currently held by institutional investors, indicating robust confidence in the company’s future.
Analyst Ratings and Market Performance
Recent analyst evaluations of AbbVie shares have produced a mixed landscape. DZ Bank downgraded the stock from a “buy” to a “hold” rating, setting a target price of $237.00. Conversely, Wells Fargo & Company raised its target from $240.00 to $260.00, maintaining an “overweight” rating. HSBC set a price target of $225.00, while Bank of America increased its target to $251.00 with a “neutral” rating. Raymond James Financial set a target of $256.00 in a recent report.
As of now, AbbVie has received ratings of two “Strong Buy,” thirteen “Buy,” and ten “Hold” ratings from various analysts. According to MarketBeat.com data, the company holds an average rating of “Moderate Buy” with a target price of approximately $241.85.
On October 31, 2023, AbbVie reported a 2.9% increase in share price, opening at $236.12. The company’s quick ratio stands at 0.61, with a current ratio of 0.74 and a debt-to-equity ratio of 44.14. AbbVie’s stock has fluctuated between a 52-week low of $164.39 and a 52-week high of $244.81, contributing to a market capitalization of $417.31 billion.
Financial Performance and Dividends
In its latest quarterly earnings report, AbbVie disclosed earnings per share (EPS) of $1.86, surpassing analysts’ expectations of $1.77 by $0.09. The company generated revenue of $15.78 billion for the quarter, exceeding estimates of $15.58 billion. This marks a 9.1% increase in revenue compared to the same quarter the previous year, when AbbVie reported an EPS of $3.00.
Looking ahead, AbbVie has set its guidance for Q4 2025 at $3.320-$3.360 EPS, with analysts projecting a full-year EPS of 12.31.
In a move to reward shareholders, AbbVie has announced a quarterly dividend of $1.73 per share, set to be paid on February 17, 2024. Shareholders recorded as of January 16, 2024, will qualify for this dividend, which reflects an increase from the previous quarterly rate of $1.64. The annualized dividend now stands at $6.92, representing a yield of 2.9%, albeit with a notably high payout ratio of 524.24%.
AbbVie Inc. continues to be a significant player in the pharmaceutical industry, engaged in the discovery, development, manufacturing, and distribution of a range of pharmaceutical products globally. The company is well-known for its treatments, including Humira for autoimmune diseases, Skyrizi for plaque psoriasis, and Imbruvica for cancers, among others.
For investors and analysts alike, AbbVie represents a compelling entity in the evolving landscape of healthcare and pharmaceuticals.
