Abbvie shares remain in focus for investors after the company increased the dividend by 10.2%

By: Stanko Iliev
Stanko Iliev
Stanko dedicates himself to providing investors with relevant information they can use to make investment decisions. He loves the… read more.
on Dec 15, 2020
  • Abbvie has reported better than expected results in the Q3
  • Humira sale in the US continues to grow, reaching $5.14B in Q3
  • BMO Capital Markets announced that AbbVie has a positive risk/reward profile

AbbVie (NYSE: ABBV) shares have advanced from $80 above $109 since the beginning of November, and the current price stands around $103. The company has reported better than expected results in Q3 and increased the quarterly dividend by 10.2%.

Fundamental analysis: Abbvie has increased the quarterly dividend by 10.2%

AbbVie is an American biopharmaceutical company that operates as a research-based pharmaceutical manufacturer. AbbVie shares have advanced after the company reported better than expected results in the third quarter of 2020.

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Total revenue has increased by 52.1% Y/Y to $12.9B, while Q3 GAAP earnings per share were $1.29. AbbVie raised its GAAP EPS guidance, and the company expects that the financial results will be even better in Q4.

Humira is the company best selling product, Humira sale in the US continue to grow, reaching $5.14B in Q3 while Humira sale in Europe was down 9.3% year-on-year to $951M.

It is essential to say that AbbVie declared a $1.30/quarterly share dividend, which is a 10.2% increase from the prior dividend. The ex-dividend day will be on January 14, with the dividend payable in February 2021.

BMO Capital Markets announced this November that AbbVie has a positive risk/reward profile and represents a very good opportunity for investors.

“Solid execution with Skyrizi/Rinvoq in immunology, along with an excellent performance with Imbruvica/Venclexta and underappreciated hematology/oncology pipeline, has now been combined with Allergan’s key growth platforms in aesthetics and neuroscience, all providing much greater portfolio diversification. Positive physician feedback and our sensitivity analysis on valuation suggest good risk/reward at current levels,” said analysts from BMO Capital Markets.

Another positive news is that Warren Buffett’s Berkshire Hathaway has bought 21.2M shares of AbbVie recently. AbbVie’s stock currently trades at its highest price since March 2018, but some analysts say that this stock is worth between a range of $120 – $150.

It’s not hard to find reasons to invest in AbbVie, and maybe now could be a good time to invest in AbbVie shares.

Technical analysis: As long the price is above $90, there is no risk of the “bear” market

AbbVie shares have performed well since the beginning of November, and as long the price is above $90, this stock remains in the “bull” market. If the price falls in the upcoming period, every price in a range from $75 – $85 could also be a very good opportunity for buying AbbVie shares.

Data source: tradingview.com

The critical support levels are $100 and $90; $110 and $120 represent the resistance levels. If the price jumps above $110, it would be a “buy” signal, but if the price falls below $90, it would be a strong “sell” signal, and the next target could be around $80.

Summary

AbbVie shares have advanced after the company reported better than expected results in the third quarter of 2020. The company expects that the financial results will be even better in Q4, and it is important to mention that Warren Buffett’s Berkshire Hathaway has this stock in its portfolio. BMO Capital Markets announced that AbbVie has a positive risk/reward profile, and it’s not hard to find reasons to invest in AbbVie.

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