Traders Buy High Volume of Call Options on AbbVie (NYSE:ABBV)

AbbVie Inc. (NYSE:ABBV) was the target of unusually large options trading on Wednesday. Stock traders bought 19,745 call options on the company. This represents an increase of 18% compared to the typical daily volume of 16,703 call options.

Analysts Set New Price Targets

Several brokerages have issued reports on ABBV. Citigroup lifted their price objective on AbbVie from $230.00 to $260.00 and gave the company a “neutral” rating in a research report on Wednesday, July 15th. Sanford C. Bernstein restated a “market perform” rating on shares of AbbVie in a report on Tuesday, June 23rd. BMO Capital Markets raised their target price on AbbVie from $258.00 to $300.00 and gave the company an “outperform” rating in a research note on Monday, July 13th. Bank of America lifted their price target on AbbVie from $234.00 to $276.00 and gave the company a “buy” rating in a report on Friday, July 10th. Finally, Piper Sandler reiterated an “overweight” rating and set a $298.00 price target on shares of AbbVie in a research report on Tuesday, June 23rd. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, AbbVie presently has a consensus rating of “Moderate Buy” and a consensus target price of $269.29.

Institutional Trading of AbbVie

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Litman Gregory Wealth Management LLC acquired a new stake in shares of AbbVie during the 4th quarter worth approximately $28,000. Westend Capital Management LLC bought a new stake in shares of AbbVie during the fourth quarter worth approximately $29,000. Imprint Wealth LLC lifted its holdings in AbbVie by 56.2% in the fourth quarter. Imprint Wealth LLC now owns 125 shares of the company’s stock valued at $29,000 after buying an additional 45 shares during the period. Legacy Wealth Managment LLC ID lifted its holdings in AbbVie by 115.9% in the fourth quarter. Legacy Wealth Managment LLC ID now owns 136 shares of the company’s stock valued at $31,000 after buying an additional 73 shares during the period. Finally, IFC & Insurance Marketing Inc. bought a new position in AbbVie in the fourth quarter valued at approximately $31,000. 70.23% of the stock is currently owned by institutional investors and hedge funds.

AbbVie Price Performance

Shares of AbbVie stock opened at $257.57 on Friday. The firm has a 50 day simple moving average of $238.39 and a 200 day simple moving average of $223.86. AbbVie has a fifty-two week low of $187.62 and a fifty-two week high of $267.47. The firm has a market cap of $455.07 billion, a P/E ratio of 126.88, a P/E/G ratio of 0.87 and a beta of 0.30.

AbbVie (NYSE:ABBV) last posted its quarterly earnings data on Wednesday, April 29th. The company reported $2.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.59 by $0.06. The firm had revenue of $15 billion for the quarter, compared to the consensus estimate of $14.72 billion. AbbVie had a negative return on equity of 576.45% and a net margin of 5.79%.The business’s revenue for the quarter was up 12.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.46 EPS. On average, sell-side analysts expect that AbbVie will post 14.14 EPS for the current year.

AbbVie Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Wednesday, July 15th will be paid a dividend of $1.73 per share. This represents a $6.92 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Wednesday, July 15th. AbbVie’s dividend payout ratio is 340.89%.

AbbVie News Summary

Here are the key news stories impacting AbbVie this week:

• Positive Sentiment: The European Commission approved RINVOQ® for severe alopecia areata in adults and adolescents aged 12 and older. The Phase 3 program demonstrated statistically significant scalp, eyebrow, and eyelash hair regrowth, including complete scalp regrowth for some patients. The approval expands RINVOQ’s commercial opportunity in Europe. RINVOQ alopecia areata approval
• Positive Sentiment: RINVOQ also received EU approval for non-segmental vitiligo, making it the first and only systemic treatment approved for that condition in the region. The decision was supported by positive Phase 3 repigmentation data and could further diversify RINVOQ growth. RINVOQ vitiligo approval
• Positive Sentiment: AbbVie began a first-in-human Phase 1 trial of ABBV-859, providing an early-stage pipeline catalyst. The program is not expected to affect near-term earnings, but investors may view it as evidence of continued investment in long-term growth. ABBV-859 Phase 1 trial
• Positive Sentiment: Unusually heavy call-option buying and a modest increase in an analyst’s 2027 earnings forecast indicate that some traders and analysts remain bullish on AbbVie’s longer-term earnings outlook.
• Neutral Sentiment: Allergan Aesthetics will hold its annual JUVÉDERM® Day on August 19, supporting consumer engagement and the aesthetics franchise, although the promotional event is unlikely to materially change near-term financial results. JUVÉDERM Day announcement
• Neutral Sentiment: Investors are also focused on AbbVie’s second-quarter earnings report due July 31. A slight reduction in one 2026 earnings estimate was offset by a higher 2027 forecast, leaving expectations mixed ahead of the report.
• Negative Sentiment: AbbVie’s proposed acquisition of Apogee Therapeutics faces an investigation into the deal’s price and transaction process. While the review does not establish wrongdoing, it introduces regulatory and execution uncertainty around the transaction. Apogee transaction investigation
• Negative Sentiment: After a strong multi-year rally, valuation concerns and potential profit-taking may be pressuring ABBV, particularly with the shares trading near their 52-week high and at a rich earnings multiple.

About AbbVie

AbbVie is a global, research-driven biopharmaceutical company that was created as a spin-off from Abbott Laboratories in 2013 and is headquartered in North Chicago, Illinois. The company focuses on discovering, developing and commercializing therapies for complex and often chronic medical conditions. Its operations span research and development, manufacturing, regulatory affairs and commercialization, with an emphasis on bringing specialty medicines to market across multiple therapeutic areas.

AbbVie’s product portfolio and pipeline cover several major therapeutic categories, including immunology, oncology, neuroscience, virology and women’s health.