Dividends + Stock-Repurchase = All-Time High?
You can hardly believe it! Humira runs like a clock and allows the Biopharma Group a historic increase in its dividends. At the same time, there is also a new share buyback program! As a result, AbbVie is increasingly emancipating itself and becoming a true global player in the biopharmaceutical business. Humira continues to set the direction.
AbbVie Inc. is a global, research-driven biopharmaceutical company committed to developing innovative advanced therapies for some of the world's most complex and critical conditions.
The American company AbbVie in 2017 demonstrated worldwide net revenues up 10.1% year-over-year on a GAAP basis ($28.2 billion). Humira increased its revenue in 2017 by 14.6% and reached the level of 18.4 billion US dollars. This makes the blockbuster responsible for 60% of the turnover of the entire AbbVie concern.
It is worth to point out that Humira is today the world's best selling drug.
What has happened lately?
AbbVie has pushed its dividend payments even higher.
On February 15, 2018 the company announced an increase to its quarterly dividend.
The board of directors of AbbVie increased the company's quarterly cash dividend to $0.96 per share. The dividend the company pays to its shareholders increases by 35 percent compared to the previous year.
The cash dividend will be paid to stockholders on May 15, 2018.
Along with the news of a dividend increase, AbbVie announced that its board of directors has authorized a new $10 billion stock-repurchase program.
What do the analysts say?
Based on 11 analysts offering 12 month price targets for ABBV in the last 3 months:
The average price target of $133.82
The maximum price target of $157.00
The lowest price target of $95.00
Today ABBV’s stock price is about 120.48 US-Dollar a share.
Fundamental Data:
P/E ratio: 35.64 / Sales growth: 10.06% / Profit growth: -10.82% / Dividends: $2.63/2.23%(Source: teletrader).
What do the technical analysis methods I use say?
Oscillator: The RSI of AbbVie is around 60. In this particular case, the 60 level may be viewed as a potential area for a bearish reversal.
Price Indicator: The price is above the 200 day moving average - trend is up.
Trend indicator: The MACD is currently in the negative zone but is moving up. That could indicate further higher prices.
The risk management tool used here is the own-developed “Traffic Signals System” (TSS) and is preferably used in analyzes by Ritschy Dobetsberger.
The black line in the chart: the starting price of the idea is 120.48 US-Dollar.
The red line in the chart: The stop loss is set at 110 US-Dollar (-8.70% risk from the start of the idea).
Conclusion:
AbbVie announced a 35% increase in its quarterly dividend and a new share repurchase program worth approximately $ 10 billion. Humira continues to set the direction.
As a result, AbbVie continues to emancipate itself and become a true global player in the biopharmaceutical business, enabling higher dividends and share buybacks!
Is this a good time to buy AbbVie? This could be a good chance to establish a position trade, because the all-time high is within striking distance!
Parameters of the Idea - Start of the idea: $120.48
Recent stock price: $120.48 (+0,00% from the starting price)
Stop-Loss of the idea: $110 (-8,70% from the starting price)
Take Profit of the idea: $157 (highest target price)
This idea has been running since February 21, 2018.
Disclosure:
"The trading ideas published here are neither to be understood as a recommendation nor as an offer or an invitation to buy or sell financial instruments and should not be understood as such.
You must also assume that the author holds the recommended position in his portfolio and benefits from the implementation of his trading ideas."
AbbVie Inc. is a global, research-driven biopharmaceutical company committed to developing innovative advanced therapies for some of the world's most complex and critical conditions.
The American company AbbVie in 2017 demonstrated worldwide net revenues up 10.1% year-over-year on a GAAP basis ($28.2 billion). Humira increased its revenue in 2017 by 14.6% and reached the level of 18.4 billion US dollars. This makes the blockbuster responsible for 60% of the turnover of the entire AbbVie concern.
It is worth to point out that Humira is today the world's best selling drug.
What has happened lately?
AbbVie has pushed its dividend payments even higher.
On February 15, 2018 the company announced an increase to its quarterly dividend.
The board of directors of AbbVie increased the company's quarterly cash dividend to $0.96 per share. The dividend the company pays to its shareholders increases by 35 percent compared to the previous year.
The cash dividend will be paid to stockholders on May 15, 2018.
Along with the news of a dividend increase, AbbVie announced that its board of directors has authorized a new $10 billion stock-repurchase program.
What do the analysts say?
Based on 11 analysts offering 12 month price targets for ABBV in the last 3 months:
The average price target of $133.82
The maximum price target of $157.00
The lowest price target of $95.00
Today ABBV’s stock price is about 120.48 US-Dollar a share.
Fundamental Data:
P/E ratio: 35.64 / Sales growth: 10.06% / Profit growth: -10.82% / Dividends: $2.63/2.23%(Source: teletrader).
What do the technical analysis methods I use say?
Oscillator: The RSI of AbbVie is around 60. In this particular case, the 60 level may be viewed as a potential area for a bearish reversal.
Price Indicator: The price is above the 200 day moving average - trend is up.
Trend indicator: The MACD is currently in the negative zone but is moving up. That could indicate further higher prices.
The risk management tool used here is the own-developed “Traffic Signals System” (TSS) and is preferably used in analyzes by Ritschy Dobetsberger.
The black line in the chart: the starting price of the idea is 120.48 US-Dollar.
The red line in the chart: The stop loss is set at 110 US-Dollar (-8.70% risk from the start of the idea).
Conclusion:
AbbVie announced a 35% increase in its quarterly dividend and a new share repurchase program worth approximately $ 10 billion. Humira continues to set the direction.
As a result, AbbVie continues to emancipate itself and become a true global player in the biopharmaceutical business, enabling higher dividends and share buybacks!
Is this a good time to buy AbbVie? This could be a good chance to establish a position trade, because the all-time high is within striking distance!
Parameters of the Idea - Start of the idea: $120.48
Recent stock price: $120.48 (+0,00% from the starting price)
Stop-Loss of the idea: $110 (-8,70% from the starting price)
Take Profit of the idea: $157 (highest target price)
This idea has been running since February 21, 2018.
Disclosure:
"The trading ideas published here are neither to be understood as a recommendation nor as an offer or an invitation to buy or sell financial instruments and should not be understood as such.
You must also assume that the author holds the recommended position in his portfolio and benefits from the implementation of his trading ideas."
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