Abbott Laboratories (ABT): Analyzing Insider Buy/Sell Ratio

With 229.73 sell/buy ratio, Abbott Laboratories (NYSE:ABT) experienced more insider selling than insider buying over the last three months. Could this be a sign for outside investors to start selling as well? ABT recorded 17 sales on the open market in the last three months. They sold nearly 344,138 shares while purchases amounted to 1,498 shares that period. Looking even further back to 12 months, corporate insiders offloaded 2,070,805 shares when buyers snapped up 718,966 shares. The 12-month’s totals signify about a 2.88-to-1 sell/buy ratio.

Salvadori Daniel Gesua Sive parted with a total of 5 thousand shares of Abbott Laboratories (ABT) at average share price of $73.39. This insider trade in the company took place on 09/28/2018. The total for the sales was set at $366.95 thousand. After this transaction, the Executive Vice President account balance stood at 88.52 thousand shares. The stock lost -2.66 percent since that insider sale. On 09/28/2018, Bracken Sharon J, Senior Vice President, sold 1.73 thousand shares at a price per share of $73.35. This removed 127.04 thousand shares from the insider’s fortune and the stock saw a -2.6 percent retreat in value since the news became public. This transaction left 39.78 thousand shares in the Senior Vice President account.

On 09/20/2018, Executive Vice President Blaser Brian J performed a sale transaction worth $4 million. This sale at $68.79 each has eliminated 58.2 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 3.85 percent increase since the transaction was reported. The insider now is left with 136.82 thousand shares remaining in the account. Lane Andrew H, who performs the Executive Vice President job, sold 9.1 thousand shares for $610.5 thousand. The disposal occurred on 08/29/2018 was priced at $67.11 per share. The share price soared 6.45 percent since the reporting date. Lane Andrew H now left with a stake of 27.83 thousand ABT stock worth $1.98 million after the insider selling.

The 12-month median price target for Abbott Laboratories (ABT) assigned by the analysts stands at $73, which represents a return potential of 2.4 percent when compared to the closing price of the stock of $71.29 on Tuesday, October 09. The lowest price target for the stock is $57 — slightly more than -20.04 percent from ABT’s current share price. The stock will probably climb 2.13 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $86-month high price target. This represents a whopping 20.63 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 60.15 on daily chart, which may remain a cause for concern. If the price breaks below $70.53 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $71.63 mark may result into a pull-back move towards $71.97 level. The stock is currently hovering around the first support level of $70.91. Below this, the next support is placed in the zone of $70.53. Till the time, the ABT stock trades above this level, bulls have nothing to fear.

Shares of Abbott Laboratories (ABT) are trading at a P/E ratio of 84.45 times earnings reported for the past 12 months. The industry ABT operates in has an average P/E of 32.83. Its P/E ratio went as low as 25.95X and as high as 210.52 over the 5-year span. Further, it is sporting a 4.24 on the Price-to-Sales ratio. Compare this with the industry average P/S of 7.37. 57.9 percent is the gross profit margin for Abbott Laboratories and operating margin sits at 10.1 percent. Along with this, the net profit margin is 3.1 percent.

On 9th of October, Abbott Laboratories (NYSE:ABT) shares ended lower after a volatile session. The shares dropped -0.15 points or -0.21 percent at $71.29 with a light trade volume of 4.812 million shares. After opening the session at $71.24, the shares went as high as $71.59 and as low as $70.87, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $125 billion and now has 1.76 billion shares outstanding. Abbott Laboratories (ABT) stock has gained 7.12 percent of market value in 21 trading days.

In last reported earnings results, ABT earned $0.73 per share, better than the $0.71, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $7.77B, better than the $7.71B analysts expected. Earnings are estimated to increase by 44.6 percent this year, 12.02 percent next year and continue to increase by 11.84 percent annually for the next 5 years. Analysts are forecasting revenue to climb 12 percent to $7.65B in the next fiscal quarter, while earnings are seen soaring by nearly 13.64 percent to $0.75 per share. History has shown that shares in Abbott Laboratories have gone up on 18 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings.

ABT stock has a trailing 3-year beta of 1.47, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.31 a share in the trailing twelve months. The stock’s value has surged 24.92 percent year to date (YTD) against a rise of 30.42 percent in 12 month’s time. The company’s shares still trade -3.86 percent away from its 1-year high of $74.15 and 32.98 percent up from 52-week low of $53.61. The average consensus rating on the company is 1.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.