Abbott Laboratories (NYSE:ABT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday.
According to Zacks, “Abbott has been reshaping its portfolio through strategic acquisitions/divestitures for long term growth. In order to focus on its key areas – cardiovascular devices and diagnostics – Abbott has inked a deal to divest its vision care business, Medical Optics, to J&J. Moreover, the Alere acquisition should boost the company’s diagnostics business, while the St. Jude Medical buyout will complement its cardiovascular devices business and strengthen its long-term growth potential. Realignment of the EPD division through acquisitions in Latin America and Russia, along with business divestitures in developed markets, has positioned the company advantageously for the coming quarters. However, headwinds in the form of currency movements and weakness in the nutrition business in China continue to be a matter of concern.”
ABT has been the subject of a number of other reports. Bank of America Corp. reiterated a “buy” rating on shares of Abbott Laboratories in a report on Monday, September 19th. Jefferies Group lowered their price objective on shares of Abbott Laboratories from $52.00 to $48.00 and set a “buy” rating for the company in a report on Tuesday, September 13th. TheStreet upgraded shares of Abbott Laboratories from a “hold” rating to a “buy” rating in a report on Monday, August 22nd. Credit Suisse Group AG restated a “buy” rating on shares of Abbott Laboratories in a report on Wednesday, June 8th. Finally, Edward Jones upgraded shares of Abbott Laboratories from a “hold” rating to a “buy” rating in a report on Tuesday, June 21st. Seven analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has given a strong buy rating to the stock. Abbott Laboratories has an average rating of “Buy” and an average target price of $47.02.
Shares of Abbott Laboratories (NYSE:ABT) traded down 1.27% during mid-day trading on Tuesday, reaching $42.01. The company’s stock had a trading volume of 3,114,223 shares. The company has a market cap of $61.75 billion, a P/E ratio of 27.73 and a beta of 0.87. Abbott Laboratories has a 12 month low of $36.00 and a 12 month high of $46.38. The company has a 50-day moving average of $42.51 and a 200-day moving average of $41.32.
Abbott Laboratories (NYSE:ABT) last posted its earnings results on Wednesday, July 20th. The healthcare product maker reported $0.55 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.53 by $0.02. The company earned $5.30 billion during the quarter, compared to analyst estimates of $5.24 billion. Abbott Laboratories had a net margin of 11.08% and a return on equity of 15.11%. Abbott Laboratories’s revenue for the quarter was up 3.2% on a year-over-year basis. During the same period in the prior year, the business posted $0.52 earnings per share.
The business also recently announced a quarterly dividend, which will be paid on Tuesday, November 15th. Shareholders of record on Friday, October 14th will be given a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 2.44%. The ex-dividend date of this dividend is Wednesday, October 12th. Abbott Laboratories’s dividend payout ratio (DPR) is presently 68.87%.
In other news, SVP Daniel Gesua Sive Salvadori sold 815 shares of Abbott Laboratories stock in a transaction on Monday, September 26th. The shares were sold at an average price of $41.71, for a total transaction of $33,993.65. Following the transaction, the senior vice president now owns 59,791 shares in the company, valued at approximately $2,493,882.61. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Stephen R. Fussell sold 41,500 shares of Abbott Laboratories stock in a transaction on Thursday, July 28th. The stock was sold at an average price of $45.00, for a total transaction of $1,867,500.00. Following the transaction, the insider now owns 196,467 shares in the company, valued at approximately $8,841,015. The disclosure for this sale can be found here. 0.26% of the stock is currently owned by company insiders.
Hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. boosted its position in shares of Abbott Laboratories by 1.6% in the second quarter. Vanguard Group Inc. now owns 97,826,407 shares of the healthcare product maker’s stock valued at $3,845,557,000 after buying an additional 1,535,735 shares in the last quarter. Massachusetts Financial Services Co. MA boosted its position in Abbott Laboratories by 16.5% in the second quarter. Massachusetts Financial Services Co. MA now owns 36,209,595 shares of the healthcare product maker’s stock worth $1,423,400,000 after buying an additional 5,115,232 shares during the period. Bank of New York Mellon Corp boosted its position in Abbott Laboratories by 1.3% in the second quarter. Bank of New York Mellon Corp now owns 29,256,692 shares of the healthcare product maker’s stock worth $1,150,083,000 after buying an additional 376,446 shares during the period. BlackRock Fund Advisors boosted its position in Abbott Laboratories by 2.4% in the second quarter. BlackRock Fund Advisors now owns 22,778,032 shares of the healthcare product maker’s stock worth $895,404,000 after buying an additional 538,002 shares during the period. Finally, Jarislowsky Fraser Ltd boosted its position in Abbott Laboratories by 780.3% in the second quarter. Jarislowsky Fraser Ltd now owns 18,800,322 shares of the healthcare product maker’s stock worth $1,060,533,000 after buying an additional 16,664,605 shares during the period. Institutional investors and hedge funds own 73.03% of the company’s stock.
Abbott Laboratories Company Profile
Abbott Laboratories (Abbott) is engaged in the discovery, development, manufacture and sale of a line of healthcare products. The Company operates in four business segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products and Vascular Products. The Established Pharmaceutical Products segment includes the international sales of a line of branded generic pharmaceutical products.
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