Abbott Laboratories (ABT) Declined on Concerns of New Diabetes Drug - InvestingChannel

Abbott Laboratories (ABT) Declined on Concerns of New Diabetes Drug

Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy performed roughly in line with the Russell 1000 Index. Early indications of consumer weakness among select merchants and a significant increase in interest rates impacted the portfolio in the third quarter. The strategy returned -3.04% net of fees compared to -3.15% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.

Diamond Hill Large Cap Strategy highlighted stocks like Abbott Laboratories (NYSE:ABT) in the third quarter 2023 investor letter. Headquartered in North Chicago, Illinois, Abbott Laboratories (NYSE:ABT) is a healthcare products manufacturer. On November 20, 2023, Abbott Laboratories (NYSE:ABT) stock closed at $101.20 per share. One-month return of Abbott Laboratories (NYSE:ABT) was 6.74%, and its shares lost 3.50% of their value over the last 52 weeks. Abbott Laboratories (NYSE:ABT) has a market capitalization of $175.689 billion.

Diamond Hill Large Cap Strategy made the following comment about Abbott Laboratories (NYSE:ABT) in its Q3 2023 investor letter:

“Health care facilities operator HCA Healthcare and medical device company Abbott Laboratories (NYSE:ABT) were also among our bottom contributors. Abbott Labs was impacted by concerns about potential threats to its diabetes franchise from new drugs. A majority of Abbott’s continuous glucose monitor (CGM) customers rely on insulin for their treatment, which means their disease will not respond to the newer medications. This concern negatively impacted investor sentiment and, in turn, Abbott’s share price, leading to underperformance in the recent quarter.”

ABT Courtesy of Abbott Labs

Abbott Laboratories (NYSE:ABT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held Abbott Laboratories (NYSE:ABT) at the end of second quarter which was 70 in the previous quarter.

We discussed Abbott Laboratories (NYSE:ABT) in another article and shared the list of most valuable healthcare companies in the world. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

 

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Disclosure: None. This article is originally published at Insider Monkey.

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