Some Investing Thoughts On Gilead Sciences Inc. (NASDAQ: GILD)


Capital Research & Management Co.. has recently announced that it has increased stake in Gilead Sciences Inc. (NASDAQ:GILD) by 30.60%. After grabbing 125.36 million shares, the institutional investor is now in possession of 29.37 million shares of the Healthcare Company. The new investment brought the stake of investor firm to 9.99% having worth around $8.72 billion. Moreover, BlackRock Fund Advisors increased its share by 13.08 million to have a control over 79.4 million shares. And SSgA Funds Management, Inc. raised its holdings to 1.22 million shares by acquiring 58.03 million shares or 4.63% of the stake.

Gilead Sciences Inc. (GILD) concluded trading on 08/26/20 at a closing price of $65.60, with 7.37 million shares of worth about $483.45 million changed hands on the day. Weekly performance of the stock remained negative as price took a plunge of -0.15% during that period and on Wednesday the price saw a loss of about -0.68%. Currently the company’s common shares owned by public are about 1.26B shares, out of which, 1.25B shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 30 analysts are covering the GILD stock and their offered price forecasts bring an average price target of $77.39. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $94.00 and could fall to a lowest price of $62.00. Analysts also issued an outlook of 2.50 for the Gilead Sciences Inc. stock for next 12 months. The stock’s current price level is 15.63% above of average price target set by the analysts, while a rise to estimated low would result in loss of -5.81 for the stock. However, touching the estimated high of $94.00 would mean a gain of 30.21% for the stock.

According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 101 times over the past 12 months. They bought 345,328 shares in 54 of the transactions. In 47 selling transactions, insiders dumped 251,345 shares.

Vanguard Total Stock Market Index, Capital Income Builder, and American Mutual Fund are the top 3 mutual funds which are holding stakes in Gilead Sciences Inc. Vanguard Total Stock Market Index is currently holding 35.66 million shares of worth totaling $2.48 billion. The company recently came selling 98690.0 shares which brought its stake up to 2.84% of the company’s outstanding shares. Capital Income Builder bought 3.85 million shares, after which its hold over company’s outstanding shares expand to 2.42%, leaving 30.29 million shares with the mutual fund that have a worth of about $2.11 billion. American Mutual Fund, after buying 28.97 million shares, have now control over 2.31% of the stake in the company. It holds 4.23 million shares of worth $2.01 billion.

Gilead Sciences Inc. (NASDAQ: GILD) started trading at $65.88, below -$0.17 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $65.60, or with a loss of -0.68%. Stock saw a price change of -0.15% in past 5 days and over the past one month there was a price change of -11.03%. Year-to-date (YTD), GILD shares are showing a performance of 0.95% which increased to 3.62% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $60.89 but also hit the highest price of $85.97 during that period. While comparing its average daily trading volume of 9.49 million shares, we see that about 7.37 million changed hands on the day. The stock is currently trading -4.61% below its 20-day simple moving average (SMA20), while that difference is down -10.11% for SMA50 and it goes to -8.29% lower than SMA200.

Capital Research & Management Co.. acquired 125.36 million shares of Gilead Sciences Inc. having value of about $8.72 billion. Data submitted at the U.S SEC by Capital Research & Management Co.. revealed that the firm now holds 29.37 million shares in the company valued at close to $1926971332.8, or have control over 30.60% stake in the company. Gilead Sciences Inc. (NASDAQ: GILD) currently have 1.26B outstanding shares and institutions hold larger chunk of about 81.40% of that. Holding of mutual funds in the company is about 27.32% while other institutional holders and individual stake holders have control over 54.03% and 1.26% of the stake respectively.

The stock has a current market capitalization of $81.69B and its 3Y-monthly beta is at 0.60. It has posted earnings per share of -$0.24 in the same period. It has Quick Ratio of 2.20 while making debt-to-equity ratio of 1.34. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for GILD, volatility over the week remained 1.45% while standing at 1.85% over the month.

Analysts are in expectations that Gilead Sciences Inc. (GILD) stock would likely to be making an EPS of $1.98 in the current quarter, while forecast for next quarter ESPS is $2.24 and it is $7.02 for next year. For the current quarter EPS, analysts have given the company a lowest target $1.6 which is $2.65 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $1.75 in the same quarter a year ago. Stock’s fiscal year EPS is expected to rise by 1.10% while it is estimated to increase by 0.37% in next year. EPS is likely to grow at an annualized rate of 1.40% for next 5-years, compared to annual growth of -10.50% made by the stock over the past 5-years.

Analysts at 30 brokerage firms have issued recommendations for the Gilead Sciences Inc. (GILD)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.50. Out of those 30 Wall Street analysts, 10 recommended a “Buy” rating, while 17 were in favor recommending the stock as a “Hold” and 2 analyst recommended the stock as “Sell”.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Wells Fargo on July 31, 2020 offering an Equal weight rating for the stock and assigned a target price range of between $87 and $76 to it. Coverage by SunTrust stated Gilead Sciences Inc. (GILD) stock as a Hold in their note to investors on July 31, 2020, suggesting a price target of $74 for the stock. On July 31, 2020, RBC Capital Mkts Reiterated their recommendations, while on July 31, 2020, Piper Sandler Reiterated their ratings for the stock with a price target of $85. Stock get an Equal-weight rating from Morgan Stanley on July 31, 2020.


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