Shares of Abbott Laboratories (NYSE:ABT) recorded 0.29% gain during trading session on February 11th, 2019. The script traded as low as $73.29 and last traded at $73.54. 4.66 million shares changed exchanged hands during trading, an increase of 34.43% from the 30-day average session volume of 7.10M shares. The firm had previously closed at $73.33. The company has $1.76B outstanding shares, a price-to-earnings ratio of 52.68, price-to-earnings-growth ratio of 4.23and a beta of 1.12. The company has a RSI of 58.39, ATR of 1.49 and a volatility of 1.39% this week. ABT has a 52 week low price of $55.58 and a 52 week high price of $74.92.
Investors have identified the tech company Abbott Laboratories as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 129.40B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Abbott Laboratories (ABT) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For ABT, the company has in raw cash 7.37 billion on their books with 4.06 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 18.2 billion total, with 0 as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
ABT were able to record 3.61 billion as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 2.04 billion. In cash movements, the company had a total of 4.54 billion as operating cash flow.
Potential earnings growth for Abbott Laboratories (ABT)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Abbott Laboratories recorded a total of 7.66 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.11% coming in sequential stages and their sales for the third quarter reducing by -0.01%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 3.17 billion trying to sell their products during the last quarter, with the result yielding a gross income of 4.49 billion. This allows shareholders to hold on to 1.76B with the revenue now reading 320 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.81 cents a share).
Is the stock of ABT attractive?
Having a look at the company’s valuation, the company is expected to record 3.60 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on ABT sounds very interesting.
In related news, Director Stratton John G bought 3,455 shares of the company’s stock in a transaction that recorded on January 31st, 2019. The purchase was performed at an average price of 72.32, for a total value of 249,875. As the purchase deal closes, the Senior Vice President Stratton John G now sold 177,457 shares of the company’s stock, valued at 12,421,990. Also, Chairman and CEO WHITE MILES D sold 5,519 shares of the company’s stock in a deal that was recorded on November 28th, 2019. The shares were sold at an average cost of 72.58 per share, with a total market value of 3,134,185. Following this completion of disposal, the Chairman and CEO now holds 142,341 shares of the company’s stock, valued at 10,298,610. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.
9 out of 21 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Abbott Laboratories stock. 1 analysts has assigned a Sell rating on the ABT stock. The 12-month mean consensus price target for the company’s shares has been set at $79.66.