Institutional Investors Show Confidence in Abbott’s Healthcare Strategy

While retail investors often chase technology stocks, major institutional players are increasingly allocating capital to established healthcare companies. Abbott Laboratories, a global leader in medical devices and diagnostics, has been a notable beneficiary of this trend, with significant buying activity from sophisticated investors in recent months. This accumulation coincides with the company's own strategic initiatives to drive future growth.

Abbott is advancing its business on two key fronts. First, the company has secured reimbursement coverage across all Canadian provinces for its FreeStyle Libre 3 Plus continuous glucose monitoring system. This development guarantees broad market access for the diabetes management technology in a major North American market.

Second, Abbott has announced a landmark strategic move: the planned acquisition of Exact Sciences for up to $23 billion. Expected to close in the second quarter of 2026, this transaction is designed to significantly bolster Abbott's capabilities in early cancer detection. Market analysts acknowledge the deal may dilute earnings per share in the near term but anticipate substantial long-term synergistic benefits.

"Smart Money" Builds Substantial Positions

Recent regulatory filings detailing ownership changes reveal a clear pattern of institutional accumulation during the third quarter of 2025. The activity was particularly pronounced, with several major financial institutions expanding their stakes.

Should investors sell immediately? Or is it worth buying Abbott Laboratories?

Tema ETFs LLC executed the most aggressive purchase, boosting its position by a substantial 184.7 percent. Citizens Financial Group Inc. increased its holdings by 15.2 percent, while the Sumitomo Mitsui Trust Group, already a major holder with a position valued at over $561 million, added a further 1.3 percent to its portfolio. These moves are widely interpreted as a vote of confidence from major capital allocators in the healthcare giant's long-term stability and strategic direction.

Shareholder Returns and Upcoming Financial Catalyst

Abbott's financial strength continues to directly benefit its shareholders. The company has raised its quarterly cash dividend to $0.63 per share. This increased distribution will be paid on February 13 to shareholders of record as of January 14.

The next immediate catalyst for the stock will be the release of fourth-quarter 2025 financial results, scheduled for January 22. Consensus estimates project earnings per share (EPS) of approximately $1.50 on revenue of around $11.8 billion. The analyst outlook remains favorable, with a consensus price target of $145 and a majority of research firms maintaining "buy" or equivalent ratings on the equity.