Abbott Laboratories (ABT) Lowered to Hold at Zacks Investment Research
Abbott Laboratories (NYSE:ABT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors 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.”
Other equities research analysts have also recently issued research reports about the stock. Edward Jones upgraded shares of Abbott Laboratories from a “hold” rating to a “buy” rating in a report on Tuesday, June 21st. Barclays PLC restated a “buy” rating and issued a $48.00 price objective on shares of Abbott Laboratories in a report on Saturday, June 18th. Jefferies Group upped their price objective on shares of Abbott Laboratories from $44.00 to $45.00 and gave the stock a “buy” rating in a report on Tuesday, June 14th. Credit Suisse Group AG restated a “buy” rating on shares of Abbott Laboratories in a report on Wednesday, June 8th. Finally, TheStreet upgraded shares of Abbott Laboratories from a “hold” rating to a “buy” rating in a report on Monday, August 22nd. Seven equities research analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has issued a strong buy rating to the company’s stock. The company currently has an average rating of “Buy” and a consensus target price of $47.02.
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Shares of Abbott Laboratories (NYSE:ABT) opened at 42.97 on Tuesday. The stock has a market cap of $63.17 billion, a price-to-earnings ratio of 28.36 and a beta of 0.87. The stock’s 50 day moving average is $42.27 and its 200 day moving average is $41.37. Abbott Laboratories has a 52 week low of $36.00 and a 52 week high of $46.38.
Abbott Laboratories (NYSE:ABT) last announced its quarterly earnings results on Wednesday, July 20th. The healthcare product maker reported $0.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.53 by $0.02. Abbott Laboratories had a net margin of 11.08% and a return on equity of 15.11%. The company had revenue of $5.30 billion for the quarter, compared to analysts’ expectations of $5.24 billion. During the same quarter in the previous year, the company earned $0.52 earnings per share. Abbott Laboratories’s quarterly revenue was up 3.2% on a year-over-year basis. On average, equities analysts forecast that Abbott Laboratories will post ($0.01) EPS for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 15th. Stockholders of record on Friday, October 14th will be paid a $0.26 dividend. The ex-dividend date of this dividend is Wednesday, October 12th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 2.42%. Abbott Laboratories’s dividend payout ratio (DPR) is presently 68.87%.
In other news, insider Stephen R. Fussell sold 41,500 shares of the firm’s stock in a transaction dated Thursday, July 28th. The shares were sold at an average price of $45.00, for a total value of $1,867,500.00. Following the completion of the sale, the insider now owns 196,467 shares in the company, valued at approximately $8,841,015. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Daniel Gesua Sive Salvadori sold 815 shares of the firm’s stock in a transaction dated Monday, September 26th. The stock was sold at an average price of $41.71, for a total transaction of $33,993.65. Following the completion of the sale, the senior vice president now owns 59,791 shares of the company’s stock, valued at approximately $2,493,882.61. The disclosure for this sale can be found here. 0.26% of the stock is currently owned by insiders.
Several large investors have recently added to or reduced their stakes in the company. Glenmede Trust Co. NA raised its stake in Abbott Laboratories by 7.3% in the first quarter. Glenmede Trust Co. NA now owns 1,639,874 shares of the healthcare product maker’s stock valued at $68,595,000 after buying an additional 111,958 shares during the period. St. Johns Investment Management Company LLC purchased a new stake in Abbott Laboratories during the first quarter valued at about $899,000. Chesley Taft & Associates LLC raised its stake in Abbott Laboratories by 0.5% in the first quarter. Chesley Taft & Associates LLC now owns 321,856 shares of the healthcare product maker’s stock valued at $13,463,000 after buying an additional 1,749 shares during the period. IMS Capital Management raised its stake in Abbott Laboratories by 4.1% in the first quarter. IMS Capital Management now owns 13,280 shares of the healthcare product maker’s stock valued at $556,000 after buying an additional 524 shares during the period. Finally, Douglas Lane & Associates LLC purchased a new stake in Abbott Laboratories during the first quarter valued at about $4,231,000. Hedge funds and other institutional investors own 73.03% of the company’s stock.
About Abbott Laboratories
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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