Gilead Sciences, Inc. (GILD): Analyst Sentiment Positive Or Negative?

Analysts at Oppenheimer upped their rating on shares of Gilead Sciences, Inc. (NASDAQ:GILD) from Perform to Outperform in their opinion released on January 03. Barclays analysts again handed out a Overweight rating to GILD stock but they lifted target price for the shares in a flash note to investors on October 26. The price target has been raised from $90 to $95. Barclays, analysts launched coverage of GILD stock with a Overweight rating, according to their flash note to investors on October 26. Analysts at Piper Jaffray downgraded the stock to a Neutral call from its previous Overweight stance, in a research note that dated back to October 26.

In the period that ended December 31, 2018, short interest in Gilead Sciences, Inc. (NASDAQ:GILD) stock is on the rise. The 15.02% advance could be an indication that investors and traders expect a deterioration in the stock price, often as a result of a deterioration in the business’ fundamentals. The average analyst recommendations at 2.1 suggests buying these shares. Between December 14 and December 31, the total number of shorted shares amounted to 14.46 million shares. That was 1,888,588 more shares than the total of 12.57 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go down. Average daily volume for GILD at the December 31st settlement jumped to 9,743,024, as compared to 7,846,798 at the December 14th report. That brought days to cover to 1.484311, a 7.36% decrease from the 1.602322 days to cover recorded at the prior short interest data release.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Gilead Sciences, Inc. (NASDAQ:GILD)’s prospects. The earliest insider trade took place on 12/03/2018. Martin John C parted with a total of 50 thousand shares of company at average share price of $71.2. The total for the sales was set at $3.56 million. After this transaction, the Director account balance stood at 2.88 million shares. The stock lost -4.27 percent since that insider sale. On 11/01/2018, Martin John C, Director, sold 50 thousand shares at a price per share of $69.55. This removed 3.48 million shares from the insider’s fortune and the stock saw a -2 percent retreat in value since the news became public. This transaction left 3.02 million shares in the Director account. On 10/01/2018, Director Martin John C performed a sale transaction worth $3.9 million. This sale at $78.04 each has eliminated 50 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -12.66 percent decrease since the transaction was reported. The insider now is left with 3.02 million shares remaining in the account. Martin John C, who performs the Director job, sold 50 thousand shares for $3.71 million. The disposal occurred on 09/04/2018 was priced at $74.16 per share. The share price plunged -8.09 percent since the reporting date. Martin John C now left with a stake of 3.02 million GILD stock worth $205.69 million after the insider selling.

Gilead Sciences, Inc. (GILD) is expected to jump by 24.93 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $106-month high price target. This represents a whopping 55.52 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $86, which represents a return potential of 26.17 percent when compared to the closing price of the stock of $68.16 on Friday, January 11. The lowest price target for the stock is $71 — slightly more than 4.17 percent from GILD’s current share price.

The shares are currently floating around the first support level of $67.6. Below this, the next support is placed in the zone of $67.04. Till the time, the GILD stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 56.28 on daily chart, which may remain a cause for concern. If the price breaks below $67.04 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $68.56 mark may result into a pull-back move towards $68.96 level.

GILD shares accumulated 0.12 points or 0.18 percent on Friday to $68.16 with a light trade volume of 5.666 million shares. After opening the session at $67.8, the shares went as high as $68.4 and as low as $67.44, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $88 billion and now has 1.29 billion shares outstanding. Gilead Sciences, Inc. (GILD) stock has gained 0.65 percent of market value in 21 trading days.

GILD stock has a trailing 3-year beta of 1.2, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $5.4 a share in the trailing twelve months. The stock’s value has surged 8.97 percent year to date (YTD) against a decline of -13.4 percent in 12 month’s time. The company’s shares still trade -23.88 percent away from its 1-year high of $89.54 and 13 percent up from 52-week low of $60.32. The average consensus rating on the company is 2.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Gilead Sciences, Inc. (GILD) are trading at a P/E ratio of 12.5 times earnings reported for the past 12 months. The industry GILD operates in has an average P/E of 95.96. Its P/E ratio went as low as 7.2X and as high as 41.39 over the 5-year span. Further, it is sporting a 3.95 on the Price-to-Sales ratio. Compare this with the industry average P/S of 242.95. 79.6 percent is the gross profit margin for Gilead Sciences, Inc. and operating margin sits at 42 percent. Along with this, the net profit margin is 7.1 percent.

GILD will be showing off its Q4 earnings on February 04. Analysts are forecasting revenue to suffer decline of -7.9 percent to $5.48B in the next fiscal quarter, while earnings are seen soaring by nearly -4.49 percent to $1.7 per share. History has shown that shares in Gilead Sciences, Inc. have gone up on 20 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.84 per share, better than the $1.63, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $5.6B, better than the $5.38B analysts expected. Earnings are estimated to increase by -22.8 percent this year, -2.21 percent next year and continue to increase by -5.23 percent annually for the next 5 years.