ABT
Abbott Laboratories
NYSE
Form 4: Abbott Laboratories Executive Vice President Acquires Shares and Options
Sentiment:
SEC Form 4 Filing
27 February 2025 6:35 PM
Louis H. Morrone, Executive Vice President of Abbott Laboratories, reports acquisition of shares and options, including a performance-based restricted stock award and employee stock options.
Summary
- On February 25, 2025, Louis H. Morrone, an Executive Vice President at Abbott Laboratories, acquired 10,232 common shares as a performance-based restricted stock award.
- These shares were acquired at a price of $0.
- Morrone also acquired 38,108 options (right to buy) at a price of $135.42, exercisable in annual increments starting February 25, 2026.
- Following these transactions, Morrone directly owns 72,375 common shares and indirectly owns 12 shares through a Profit Sharing Trust.
- He also directly owns 38,108 derivative securities (options).
Sentiment
Score: 7
Explanation: The sentiment is neutral to positive. The acquisition of shares and options by an executive is generally seen as a positive sign, indicating confidence in the company's future performance. However, it's a routine filing and doesn't necessarily indicate a major shift in the company's prospects.
Positives
- The acquisition of performance-based restricted stock suggests confidence in Abbott's future performance and ability to meet return on equity targets.
- The granting of employee stock options aligns the executive's interests with those of the shareholders, incentivizing value creation.
Future Outlook
The acquired options become exercisable in annual increments starting February 25, 2026, suggesting a long-term incentive structure.
Industry Context
Executive compensation through stock options and restricted stock is a common practice in the pharmaceutical industry to align management's interests with shareholder value.
Comparison to Industry Standards
- Companies like Johnson & Johnson (JNJ) and Pfizer (PFE) also utilize stock options and restricted stock units as part of their executive compensation packages.
- The vesting schedules and performance metrics associated with these awards often vary based on company-specific goals and industry benchmarks.
- The specific terms of Abbott's 2017 Incentive Stock Program, including the return on equity target, would need to be compared to those of its peers to assess its relative competitiveness.
Stakeholder Impact
- The acquisition of shares and options by an executive can have a positive impact on shareholder sentiment, as it aligns management's interests with those of the shareholders.
- Employees may view the granting of stock options as a positive sign, indicating that the company values their contributions and is committed to their long-term success.
Key Dates
- 02/25/2025: Date of earliest transaction: Acquisition of common shares and stock options.
- 02/25/2026: First date that 12,702 of the acquired options become exercisable.
- 02/25/2027: Second date that 12,703 of the acquired options become exercisable.
- 02/25/2028: Third date that 12,703 of the acquired options become exercisable.
- 02/24/2035: Expiration date of the acquired options.
- 02/27/2025: Date of Form 4 filing.
Keywords
ABT
Abbott Laboratories
NYSE
Sector: TBD
Filings with Classifications
Better than expected
30 April 2025 4:14 PM
Quarterly Report
- Net sales and earnings increased year-over-year, indicating improved financial performance.
- The gross profit margin improved, suggesting better cost management and pricing strategies.
- Strong growth in key segments like Medical Devices and Established Pharmaceutical Products contributed to the positive results.
Better than expected
16 April 2025 7:36 AM
Earnings Release
- The company's adjusted EPS of $1.09 exceeded expectations.
- Organic sales growth of 6.9 percent surpassed previous forecasts.
- The adjusted operating margin of 21.0 percent was higher than anticipated.
Better than expected
14 March 2025 4:07 PM
Proxy Statement
- Abbott's TSR performance is above the peer group median on a one-year and five-year basis.
- The company returned $5.1 billion to shareholders in 2024 and increased its dividend by 7.3% for 2025.
- Abbott's 2030 Sustainability Plan aims to reach 3 billion people a year with its products and services.
Worse than expected
21 February 2025 4:07 PM
Annual Report
- COVID-19 testing-related sales decreased significantly to $747 million in 2024 compared to $8.4 billion in 2022.
- The Diagnostics segment saw a sales decrease of 3.9% in 2024 and 38.2% in 2023, excluding the impact of foreign exchange, driven by lower demand for COVID-19 tests.
Delay expected
21 February 2025 4:07 PM
Annual Report
- There were no delays in Abbotts 2024 research and development activities that are expected to have a material impact on operations.
Better than expected
22 January 2025 7:13 AM
Quarterly Report
- Abbott exceeded the upper end of its initial guidance for both organic sales growth and adjusted earnings per share for 2024.
- The company's fourth-quarter sales growth and earnings per share growth were the highest of the year.
- Abbott's 2025 outlook projects strong organic sales growth and improved profitability.
Better than expected
31 October 2024 5:14 PM
Quarterly Report
- The company's net sales increased by 7.4% excluding foreign exchange impacts, exceeding expectations.
- The medical devices segment showed strong growth, with a 13.6% increase in sales for the first nine months of 2024, excluding foreign exchange impacts.
- The company's gross profit margin improved to 51.4% in the third quarter of 2024, indicating better profitability.
Better than expected
16 October 2024 7:37 AM
Quarterly Report
- The company's results exceeded expectations, particularly in organic sales growth and Medical Devices performance.
- The full-year EPS guidance was raised, indicating a positive outlook for the remainder of the year.
Worse than expected
31 July 2024 4:02 PM
Quarterly Report
- Net earnings decreased in both the second quarter and the first six months of 2024 compared to the prior year.
- The company recorded a $143 million loss on the sale of a non-core business.
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Better than expected
18 July 2024 7:37 AM
Quarterly Report
- Abbott's results were better than expected due to strong organic sales growth, particularly in the Medical Devices segment.
- The company raised its full-year EPS guidance, indicating improved financial performance compared to previous expectations.
Worse than expected
2 May 2024 4:11 PM
Quarterly Report
- Net earnings decreased from $1.318 billion to $1.225 billion compared to the same quarter last year.
- Diagnostic Products sales decreased by 17.6% due to lower COVID-19 testing demand.
Better than expected
17 April 2024 7:36 AM
Quarterly Report
- Abbott's results exceeded expectations due to strong organic growth in its base business and better than expected performance in the Medical Devices segment.
- The company raised its full-year sales and EPS guidance, indicating confidence in future performance.
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