Gilead Sciences (NASDAQ:GILD) Hits New 1-Year High – Still a Buy?

Shares of Gilead Sciences, Inc. (NASDAQ:GILD) reached a new 52-week high on Thursday. The company traded as high as $160.51 and last traded at $159.0570, with a volume of 847,634 shares. The stock had previously closed at $153.54.

Trending Headlines about Gilead Sciences

Here are the key news stories impacting Gilead Sciences this week:

• Positive Sentiment: New solid-tumor cancer partnership: Gilead and Vir Biotechnology agreed to discover and develop three PRO-XTEN® dual-masked T-cell engagers targeting solid-t tumor-associated antigens. Gilead received exclusive rights to develop and commercialize the candidates, giving it access to Vir’s immunology, antibody-engineering and masking technology. The deal strengthens Gilead’s oncology pipeline and may diversify growth beyond its established HIV and hepatitis franchises. Vir Biotechnology and Gilead collaborate on novel cancer therapeutics
• Positive Sentiment: Constructive analyst sentiment: Recent coverage identifies Gilead among healthcare stocks viewed favorably by analysts. This supports investor confidence in the company’s earnings outlook, pipeline and shareholder-return profile, though other analyst commentary indicates that sentiment is not unanimous. Analysts Are Bullish on These Healthcare Stocks
• Neutral Sentiment: Strong technical performance: Gilead cleared a prior February peak and remains close to its 12-month high. The move can attract momentum investors, but the stock’s elevated position also increases the risk of profit-taking. Gilead Sciences Clears Its February High
• Neutral Sentiment: Investor attention is rising: Gilead has become a heavily watched stock on Zacks, but the article primarily highlights investor interest rather than a new earnings or guidance catalyst. Gilead Sciences Is Attracting Investor Attention

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the stock. Weiss Ratings upgraded shares of Gilead Sciences from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, September 14th. Barclays cut their price target on shares of Gilead Sciences from $155.00 to $145.00 and set an “equal weight” rating on the stock in a research note on Wednesday, July 29th. Cantor Fitzgerald reissued an “overweight” rating and issued a $155.00 price target on shares of Gilead Sciences in a research report on Thursday, October 8th. Wall Street Zen upgraded shares of Gilead Sciences from a “hold” rating to a “buy” rating in a research note on Saturday, September 19th. Finally, Leerink Partners lowered Gilead Sciences from an “outperform” rating to a “market perform” rating and dropped their price objective for the stock from $146.00 to $127.00 in a report on Tuesday, July 21st. Twenty-three investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $159.33.

Gilead Sciences Stock Performance

The firm’s 50-day moving average is $146.20 and its 200 day moving average is $136.99. The stock has a market cap of $195.57 billion, a PE ratio of -59.21 and a beta of 0.31. The company has a debt-to-equity ratio of 2.03, a quick ratio of 1.09 and a current ratio of 1.27.

Gilead Sciences (NASDAQ:GILD) last posted its quarterly earnings data on Monday, August 3rd. The biopharmaceutical company reported ($6.75) EPS for the quarter, beating analysts’ consensus estimates of ($7.25) by $0.50. Gilead Sciences had a negative net margin of 10.64% and a negative return on equity of 2.11%. The company had revenue of $7.80 billion for the quarter, compared to analyst estimates of $7.40 billion. During the same period in the previous year, the business posted $2.01 earnings per share. Gilead Sciences’s quarterly revenue was up 10.6% on a year-over-year basis. As a group, research analysts anticipate that Gilead Sciences, Inc. will post -0.47 EPS for the current year.

Gilead Sciences Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 15th were given a dividend of $0.82 per share. This represents a $3.28 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend was Tuesday, September 15th. Gilead Sciences’s dividend payout ratio (DPR) is presently -122.85%.

Insider Buying and Selling

In related news, CEO Daniel O’Day sold 15,000 shares of Gilead Sciences stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $148.64, for a total value of $2,229,600.00. Following the transaction, the chief executive officer directly owned 577,133 shares in the company, valued at $85,785,049.12. This trade represents a 2.53% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Andrew D. Dickinson sold 3,000 shares of the business’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $145.29, for a total transaction of $435,870.00. Following the completion of the transaction, the chief financial officer directly owned 164,096 shares in the company, valued at $23,841,507.84. This represents a 1.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 105,000 shares of company stock worth $14,940,540. 0.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Nvwm LLC boosted its stake in shares of Gilead Sciences by 470.8% in the third quarter. Nvwm LLC now owns 274 shares of the biopharmaceutical company’s stock valued at $41,000 after buying an additional 226 shares in the last quarter. Howard Financial Services LTD. lifted its holdings in Gilead Sciences by 20.3% in the third quarter. Howard Financial Services LTD. now owns 1,954 shares of the biopharmaceutical company’s stock valued at $291,000 after acquiring an additional 330 shares during the period. Triangle Securities Wealth Management boosted its position in shares of Gilead Sciences by 21.8% during the 3rd quarter. Triangle Securities Wealth Management now owns 4,155 shares of the biopharmaceutical company’s stock worth $619,000 after purchasing an additional 745 shares in the last quarter. Mather Group LLC. boosted its position in shares of Gilead Sciences by 5.0% during the 3rd quarter. Mather Group LLC. now owns 35,004 shares of the biopharmaceutical company’s stock worth $5,217,000 after purchasing an additional 1,657 shares in the last quarter. Finally, Fortitude Family Office LLC boosted its position in shares of Gilead Sciences by 17.7% during the 3rd quarter. Fortitude Family Office LLC now owns 812 shares of the biopharmaceutical company’s stock worth $121,000 after purchasing an additional 122 shares in the last quarter. 83.67% of the stock is currently owned by institutional investors and hedge funds.

Gilead Sciences Company Profile

Gilead Sciences, Inc (NASDAQ: GILD) is a biopharmaceutical company that discovers, develops and commercializes medicines for serious and life-threatening diseases. Its research and commercial activities focus primarily on virology, including HIV, hepatitis B and hepatitis C, as well as oncology, inflammation and other areas of significant unmet medical need.

Gilead’s portfolio includes HIV treatments such as Biktarvy, Descovy, Genvoya and Sunlenca; hepatitis therapies including Epclusa, Harvoni and Vemlidy; and Veklury (remdesivir), an antiviral used to treat COVID-19 in certain patients.