Key Points
For those unfamiliar with Israel “Izzy” Englander, his investment track record warrants attention. As the founder of the Millennium Management hedge fund and a billionaire, his financial acumen is well-established. The firm recently achieved a valuation of nearly $100 billion, according to Bloomberg.
Investors closely monitor the trades of prominent figures like Englander. A notable recent transaction involved his fund acquiring a position in Space Exploration Technologies (NASDAQ: SPCX). Millennium Management purchased approximately 17.6 million shares of SpaceX, totaling nearly $3 billion.
Millennium Management’s Israel “Izzy” Englander. Image source: Getty Images.
While the acquisition of SpaceX might appear unexpected, it is not entirely without rationale. Despite its seemingly inflated valuation, the company holds substantial promise. It dominates the space launch industry, and its Starlink service leads satellite communications—both sectors offering significant growth potential. Furthermore, SpaceX operates an artificial intelligence (AI) platform and reported a 92% year-over-year revenue increase to $7.8 billion in its most recent quarter.
Why buy AbbVie?
The acquisition of AbbVie (NYSE: ABBV) stock is perhaps even more surprising. The fund added 840,718 shares, more than doubling its AbbVie position to 1.5 million shares, valued at approximately $380 million.
AbbVie operates as a diversified pharmaceutical enterprise, offering treatments for chronic skin conditions, digestive issues, autoimmune diseases, age-related health concerns, and various cancers. Its key products, Skyrizi for plaque psoriasis and Rinvoq for rheumatoid arthritis, generated $9.99 billion and $4.64 billion in net sales respectively during the first half of 2026. The company is also the maker of Botox, which consistently generates billions in revenue.
AbbVie also represents an attractive dividend stock, currently offering a yield of 2.7%. Notably, its payouts have demonstrated consistent growth. The company pays an annual dividend of $6.83 per share, up from $5.92 in 2023, $4.72 in 2020, and $2.28 in 2016. This reflects a 5.9% average annual growth rate over the past five years and an 11.7% increase over the past decade.
At a 2.7% yield, Millennium’s $380 million investment is poised to generate approximately $10.3 million in annual dividends—a figure that should continue to expand over time.
Why think twice?
However, AbbVie is not without risk, primarily due to its current valuation. For instance, its price-to-sales ratio stands at 7.2, which is significantly higher than the 6.3 recorded at the end of March and the 5.7 level from a year ago. While these metrics are not excessively high, they warrant caution. For comparison, SpaceX’s price-to-sales ratio is 69. Investors with a long-term horizon might still consider purchasing a stock at a premium, trusting that it will eventually grow into and surpass its current fair value.
Additionally, some analysts may be concerned about AbbVie’s reliance on acquisitions for growth. While strategic, these transactions require substantial capital, such as the $11 billion spent to acquire Apogee Therapeutics. Although such deals can significantly increase debt, the company maintains that they will yield substantial long-term returns.
