Growing Through Challenges? – Gilead Sciences Inc. (GILD)


Capital Research & Management Co.. recently announced the acquisition of new stake in Gilead Sciences Inc. (NASDAQ:GILD). The institutional investor has increased its shareholding in the Healthcare company by 30.60% to 125.36 million shares with purchase of 29.37 million shares. This fresh investment now brings its stake to 9.99% valued currently at $8.72 billion. In addition, BlackRock Fund Advisors raised its holdings by 13.08 million to 79.4 million shares. And SSgA Funds Management, Inc. has lifted its position by 2.15% or 1.22 million shares – to 58.03 million shares.

With over 6.68 million Gilead Sciences Inc. (GILD) shares trading Friday and a closing price of $65.26 on the day, the dollar volume was approximately $436.01 million. The shares have shown a negative weekly performance of -1.86% and its price on 08/28/20 lost nearly -0.44%. Currently, there are 1.26B common shares owned by the public and among those 1.25B shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 30 analysts who have offered their price forecasts for GILD have a consensus price objective of $77.39. The analysts have set the share’s price value over the next 12 months at a high of $94.00 and a low of $62.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Gilead Sciences Inc. stock is 2.50 for the next 12 months. The average price target is 16.06% above its last price level and an upside to the estimated low will see the stock lose -5.26% over that period. But an upside of 30.57% will see the stock hit the forecast high price target while mean target price for the stock is $79.00.

Insiders at the company have transacted a total of 99 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 53 of these insider trades were purchases, accounting for 340,420 shares. Insider sales of the common stock occurred on 46 occasions, with total insider shares sold totaling 246,437 shares.

The top 3 mutual fund holders in Gilead Sciences Inc. are Vanguard Total Stock Market Index, Capital Income Builder, and American Mutual Fund. Vanguard Total Stock Market Index owns 35.66 million shares of the company’s stock, all valued at over $2.48 billion. The company sold 98690.0 shares recently to bring their total holdings to about 2.84% of the shares outstanding. Capital Income Builder bought 3.85 million shares to see its total holdings expand to 30.29 million shares valued at over $2.11 billion and representing 2.42% of the shares outstanding. American Mutual Fund bought 4.23 million shares to bring its total holdings to over 28.97 million shares at a value of $2.01 billion. American Mutual Fund now owns shares totaling to 2.31% of the shares outstanding.

Shares of Gilead Sciences Inc. (NASDAQ: GILD) opened at $65.22, down -$0.33 from a prior closing price of $65.55. However, the script later closed the day at $65.26, down -0.44%. The company’s stock has a 5-day price change of -1.86% and -13.17% over the past three months. GILD shares are trading 0.43% year to date (YTD), with the 12-month market performance up to 2.37% higher. It has a 12-month low price of $60.89 and touched a high of $85.97 over the same period. Currently, 6.68 million shares have been traded, compared to an average intraday trading volume of 9.36 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -4.11%, -10.15%, and -8.78% respectively.

Institutional ownership of Gilead Sciences Inc. (NASDAQ: GILD) shares accounts for 81.40% of the company’s 1.26B shares outstanding. Mutual fund holders own 27.36%, while other institutional holders and individual stakeholders account for 53.99% and 1.26% respectively.

It has a market capitalization of $82.18B and a beta (3y monthly) value of 0.57. The earnings-per-share (ttm) stands at -$0.24. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.21% over the week and 1.80% over the month.

Analysts forecast that Gilead Sciences Inc. (GILD) will achieve an EPS of $1.98 for the current quarter, $2.24 for the next quarter and $7.01 for 2021. The lowest estimate earnings-per-share for the quarter is $1.6 while analysts give the company a high EPS estimate of $2.65. Comparatively, EPS for the current quarter was $1.75 a year ago. Earnings per share for the fiscal year are expected to increase by 1.10%, and -0.10% over the next financial year. EPS should grow at an annualized rate of 1.40% over the next five years, compared to -10.50% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 30 brokerage firm advisors rate Gilead Sciences Inc. (GILD) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 10 Wall Street analysts polled rate the stock as a buy, while 17 of the 30 advise that investors “hold,” and 2 rated it as a “Sell.”

Looking at the support for the GILD, a number of firms have released research notes about the stock. Wells Fargo stated their Equal Weight rating for the stock in a research note on July 31, 2020, with the firm’s price target at $87-$76. SunTrust coverage for the Gilead Sciences Inc. (GILD) stock in a research note released on July 31, 2020 offered a Hold rating with a price target of $74. RBC Capital Mkts was of a view on July 31, 2020 that the stock is Outperform, while Piper Sandler gave the stock Overweight rating on July 31, 2020, issuing a price target of $90- $85. Morgan Stanley on their part issued Equal-Weight rating on July 31, 2020.


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