Kevin K Buckbee Executes Sell Order: Offloads $310K In AbbVie Stock

On December 18, a recent SEC filing unveiled that Kevin K Buckbee, SVP at AbbVie ABBV made an insider sell.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Buckbee sold 1,800 shares of AbbVie. The total transaction amounted to $310,032.

AbbVie's shares are actively trading at $172.41, experiencing a down of 0.35% during Thursday's morning session.

About AbbVie

AbbVie is a pharmaceutical firm with a strong exposure to immunology (with Humira, Skyrizi, and Rinvoq) and oncology (with Imbruvica and Venclexta). The company was spun off from Abbott in early 2013. The 2020 acquisition of Allergan added several new products and drugs in aesthetics (including Botox).

Understanding the Numbers: AbbVie's Finances

Revenue Growth: AbbVie displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 3.83%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Evaluating Earnings Performance:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 70.87%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): AbbVie's EPS reflects a decline, falling below the industry average with a current EPS of 0.88.

Debt Management: With a high debt-to-equity ratio of 11.78, AbbVie faces challenges in effectively managing its debt levels, indicating potential financial strain.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 60.29 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 5.52 is lower than the industry average, implying a discounted valuation for AbbVie's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): AbbVie's EV/EBITDA ratio, lower than industry averages at 20.27, indicates attractively priced shares.

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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The Relevance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

The Insider's Guide to Important Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of AbbVie's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.