Abbott Laboratories (NYSE:ABT) Shares Gap Down – What’s Next?
by Mitch Edgeman · The Markets DailyShares of Abbott Laboratories (NYSE:ABT – Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $120.73, but opened at $107.53. Abbott Laboratories shares last traded at $112.1370, with a volume of 14,253,793 shares.
Abbott Laboratories News Roundup
Here are the key news stories impacting Abbott Laboratories this week:
- Positive Sentiment: MedTech and pharma strength, and EPS resilience — Abbott reported adjusted Q4 EPS growth (company highlighted margin improvements) and strong MedTech (+~12%) and Established Pharma (+~9%) performance that partly offset Nutrition weakness; management still projects FY‑2026 adjusted EPS growth. Press Release
- Positive Sentiment: Analysts keep buy/outperform stance despite cuts — several major firms trimmed price targets after the print but largely maintained buy/overweight ratings, signaling conviction in the longer‑term story even as near‑term expectations were tempered. Analyst Reaction
- Positive Sentiment: Some commentators view the pullback as a buying opportunity — market commentators highlight ABT’s dividend history, cash flow and buyback capacity, suggesting the drop may create an attractive entry for long‑term investors. MarketBeat: Pullback Analysis
- Neutral Sentiment: Full earnings call and transcripts available — investors can review management commentary and segment detail in the Q4 earnings call transcript for color on nutrition, diagnostics and Exact/other strategic items. Earnings Transcript
- Neutral Sentiment: Dividend/valuation commentary circulates — value and dividend‑focused outlets are flagging ABT as attractively valued after the pullback; this is background context rather than a near‑term catalyst. Zacks: Value Take
- Negative Sentiment: Revenue miss driven by Nutrition and Diagnostics — Q4 revenue (~$11.5B) fell short of consensus, with Nutrition down sharply (~8–9%) and Diagnostics weak, sparking the initial selloff. Reuters: Revenue Miss
- Negative Sentiment: Guidance slightly below Street — Abbott set Q1 EPS and FY‑2026 EPS ranges that sit near or a touch below consensus, increasing near‑term revenue/growth concerns. Guidance Details
- Negative Sentiment: Multiple price‑target cuts — a raft of firms (Citigroup, Goldman, Raymond James, Sanford Bernstein, Oppenheimer, RBC, etc.) trimmed targets, which can amplify selling pressure even if ratings remain constructive. Benzinga: PT Cuts
- Negative Sentiment: Options and hedging activity spiked — an unusual surge in put buying suggests traders are positioning for further near‑term downside (heightened bearish sentiment).
- Negative Sentiment: Regulatory scrutiny in India — reports of an investigation into alleged misuse of a codeine‑based cough syrup (Abbott Healthcare) add an extra headline risk in emerging markets. Reuters: India Scrutiny
Analysts Set New Price Targets
Several equities research analysts have recently commented on ABT shares. Mizuho boosted their price objective on Abbott Laboratories from $135.00 to $140.00 and gave the company a “neutral” rating in a report on Tuesday, October 14th. Benchmark assumed coverage on shares of Abbott Laboratories in a research note on Friday, October 10th. They set a “buy” rating and a $145.00 price target for the company. Oppenheimer dropped their price objective on shares of Abbott Laboratories from $140.00 to $132.00 and set an “outperform” rating on the stock in a research note on Friday. Jefferies Financial Group lifted their price objective on shares of Abbott Laboratories from $145.00 to $149.00 and gave the company a “buy” rating in a report on Thursday, October 16th. Finally, Barclays upped their target price on shares of Abbott Laboratories from $162.00 to $169.00 and gave the stock an “overweight” rating in a report on Monday, January 5th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $140.79.
View Our Latest Stock Report on Abbott Laboratories
Abbott Laboratories Stock Down 1.1%
The company has a current ratio of 1.70, a quick ratio of 1.24 and a debt-to-equity ratio of 0.23. The firm has a market capitalization of $186.86 billion, a P/E ratio of 28.89, a P/E/G ratio of 1.80 and a beta of 0.72. The stock’s 50-day simple moving average is $124.77 and its 200-day simple moving average is $128.36.
Abbott Laboratories (NYSE:ABT – Get Free Report) last posted its earnings results on Thursday, January 22nd. The healthcare product maker reported $1.50 EPS for the quarter, hitting the consensus estimate of $1.50. The firm had revenue of $11.46 billion for the quarter, compared to analysts’ expectations of $11.80 billion. Abbott Laboratories had a net margin of 14.72% and a return on equity of 17.94%. The company’s quarterly revenue was up 4.4% compared to the same quarter last year. During the same quarter last year, the firm earned $1.34 EPS. Abbott Laboratories has set its Q1 2026 guidance at 1.120-1.180 EPS and its FY 2026 guidance at 5.550-5.800 EPS. As a group, research analysts predict that Abbott Laboratories will post 5.14 earnings per share for the current fiscal year.
Abbott Laboratories Increases Dividend
The firm also recently announced a quarterly dividend, which will be paid on Friday, February 13th. Stockholders of record on Thursday, January 15th will be paid a dividend of $0.63 per share. This represents a $2.52 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Thursday, January 15th. This is a positive change from Abbott Laboratories’s previous quarterly dividend of $0.59. Abbott Laboratories’s dividend payout ratio (DPR) is presently 67.74%.
Institutional Trading of Abbott Laboratories
Several hedge funds have recently added to or reduced their stakes in the stock. IMG Wealth Management Inc. lifted its stake in Abbott Laboratories by 759.1% in the second quarter. IMG Wealth Management Inc. now owns 189 shares of the healthcare product maker’s stock valued at $26,000 after purchasing an additional 167 shares during the last quarter. Harbor Capital Advisors Inc. bought a new stake in shares of Abbott Laboratories in the fourth quarter valued at $27,000. Cloud Capital Management LLC purchased a new position in shares of Abbott Laboratories during the 3rd quarter valued at $29,000. Guerra Advisors Inc bought a new position in shares of Abbott Laboratories during the 3rd quarter worth $31,000. Finally, Anfield Capital Management LLC raised its stake in Abbott Laboratories by 81.3% in the 2nd quarter. Anfield Capital Management LLC now owns 232 shares of the healthcare product maker’s stock valued at $32,000 after acquiring an additional 104 shares during the period. Institutional investors own 75.18% of the company’s stock.
About Abbott Laboratories
Abbott Laboratories is a global healthcare company headquartered in Abbott Park, Illinois, that develops, manufactures and markets a broad portfolio of medical products and services. Founded in 1888, Abbott operates through multiple business areas that focus on diagnostics, medical devices, nutritionals and established pharmaceuticals. The company supplies hospitals, clinics, laboratories, retailers and direct-to-consumer channels with products intended to diagnose, treat and manage a wide range of health conditions.
In diagnostics, Abbott provides laboratory and point-of-care testing platforms and assays used to detect infectious diseases, chronic conditions and biomarkers; its Alinity family of instruments and rapid-test solutions are examples of this capability.