Market Overview

Insiders Buy Abbott Laboratories Shares After Merger Deal Sours

  • Insiders at this healthcare products giant recently bought some of its shares.
  • Those purchases followed news of a merger gone sour.
  • The share price has drooped since those buys.

Conventional wisdom says that insiders and 10 percent owners really only buy shares of a company for one reason -- they believe the stock price will rise and they want to profit from it. So insider buying can be an encouraging signal for potential investors, particularly during periods of uncertainty. Case in point: recent notable buys at Abbott Laboratories (NYSE: ABT).

Two executive vice presidents at this healthcare products giant have bought 28,000 shares in the past week. The share prices for the purchases ranged from $38.45 to $39.09, for a total of around $1.1 million. Earlier this month, Abbott Labs filed to terminate its proposed merger with Alere Inc (NYSE: ALR), citing negative developments.

Abbott Labs has a market capitalization of more than $56 billion. Short interest is more than 5 percent of the float, but the consensus recommendation of analysts is to buy shares. The stock is trading at about the same price as a month ago, though it was up as much as 3.5 percent in that time. The share price is about 15 percent lower than a year ago, and the stock closed most recently at $38.26, below the executives' purchase prices.


Related Articles (ABT)

View Comments and Join the Discussion!

Posted-In: abbott laboratories AlereNews Insider Trades

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at