AbbVie (NYSE:ABBV) Shares Down 3.9% – Should You Sell?

AbbVie Inc. (NYSE:ABBV) shares were down 3.9% during mid-day trading on Thursday . The stock traded as low as $223.12 and last traded at $224.22. Approximately 9,265,758 shares traded hands during trading, an increase of 14% from the average daily volume of 8,144,709 shares. The stock had previously closed at $233.42.

AbbVie News Roundup

Here are the key news stories impacting AbbVie this week:

• Positive Sentiment: Multiple clinical and pipeline updates point to ongoing product-cycle growth (Phase 1 ABBV‑243 safety data, progress on icalcaprant, and completed real‑world studies for Rinvoq and upadacitinib), supporting longer‑term revenue diversification away from Humira. ABBV‑243 Phase 1 Trial
• Positive Sentiment: Zacks and other analysts highlight immunology momentum — strong Skyrizi and Rinvoq demand is expected to help offset Humira LOE, which is a constructive revenue thesis for FY‑2025/2026. Zacks: Immunology expectations
• Positive Sentiment: Dividend-focused coverage (Seeking Alpha pieces) and a recent buy rating from Berenberg support income‑oriented and value investors who view ABBV’s payout and yield as a stabilizer. Seeking Alpha: Dividend thesis Berenberg buy
• Neutral Sentiment: Press swirl about potential suitors for Revolution Medicines (reports that Merck may be in talks) creates market noise that can influence sector comps and M&A speculation but does not change AbbVie’s fundamentals unless a deal is announced. FT: Merck talks on Revolution
• Negative Sentiment: AbbVie publicly denied reports it was in talks to acquire Revolution Medicines after earlier speculation drove gains in both names; the denial removed the takeover premium and likely triggered short‑term selling pressure. Barron’s: AbbVie denies talks
• Negative Sentiment: Management’s updated Q4 and FY‑2025 EPS guidance came in at the low end or slightly below consensus (Q4: 3.320–3.360 vs. cons. 3.360; FY: 10.610–10.650 vs. cons. 10.650), which can cap near‑term upside and weigh on sentiment. (Company guidance update)
• Negative Sentiment: AbbVie flagged IPR&D and related expenses that will negatively impact Q4 EPS, a known near‑term earnings headwind highlighted by Seeking Alpha coverage. Seeking Alpha: IPR&D Q4 EPS impact

Analyst Ratings Changes

ABBV has been the subject of several recent analyst reports. Wall Street Zen cut AbbVie from a “strong-buy” rating to a “buy” rating in a research note on Saturday, January 3rd. JPMorgan Chase & Co. increased their target price on shares of AbbVie from $250.00 to $260.00 and gave the company an “overweight” rating in a research report on Monday, November 3rd. Weiss Ratings reiterated a “hold (c)” rating on shares of AbbVie in a research note on Wednesday, October 8th. Cantor Fitzgerald set a $250.00 target price on AbbVie and gave the stock an “overweight” rating in a report on Thursday, October 9th. Finally, Morgan Stanley boosted their price objective on AbbVie from $261.00 to $269.00 and gave the stock an “overweight” rating in a research note on Friday, December 12th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $246.89.

AbbVie Trading Down 1.8%

The company’s 50-day moving average is $226.59 and its 200 day moving average is $215.12. The firm has a market cap of $388.93 billion, a PE ratio of 166.71, a P/E/G ratio of 0.94 and a beta of 0.36.

AbbVie (NYSE:ABBV) last issued its earnings results on Friday, October 31st. The company reported $1.86 EPS for the quarter, topping the consensus estimate of $1.77 by $0.09. AbbVie had a return on equity of 3,216.47% and a net margin of 4.00%.The business had revenue of $15.78 billion during the quarter, compared to analysts’ expectations of $15.58 billion. During the same quarter last year, the firm posted $3.00 earnings per share. AbbVie’s revenue was up 9.1% compared to the same quarter last year. AbbVie has set its Q4 2025 guidance at 3.320-3.360 EPS. On average, research analysts predict that AbbVie Inc. will post 12.31 EPS for the current fiscal year.

AbbVie Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, February 17th. Investors of record on Friday, January 16th will be issued a $1.73 dividend. This is a boost from AbbVie’s previous quarterly dividend of $1.64. The ex-dividend date is Friday, January 16th. This represents a $6.92 annualized dividend and a yield of 3.1%. AbbVie’s payout ratio is 496.97%.

Hedge Funds Weigh In On AbbVie

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. First Heartland Consultants Inc. lifted its holdings in AbbVie by 0.8% during the 4th quarter. First Heartland Consultants Inc. now owns 5,836 shares of the company’s stock valued at $1,333,000 after purchasing an additional 48 shares during the last quarter. Silverlake Wealth Management LLC lifted its stake in shares of AbbVie by 0.5% during the fourth quarter. Silverlake Wealth Management LLC now owns 9,568 shares of the company’s stock valued at $2,186,000 after acquiring an additional 51 shares during the period. Keb Asset Management LLC increased its position in AbbVie by 3.3% in the fourth quarter. Keb Asset Management LLC now owns 1,790 shares of the company’s stock worth $409,000 after purchasing an additional 58 shares during the period. Overbrook Management Corp acquired a new position in AbbVie during the 4th quarter valued at about $9,610,000. Finally, Cultivar Capital Inc. boosted its position in shares of AbbVie by 4.7% in the 4th quarter. Cultivar Capital Inc. now owns 1,987 shares of the company’s stock worth $454,000 after purchasing an additional 90 shares during the last quarter. 70.23% of the stock is currently owned by institutional investors.

AbbVie Company Profile

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.