Buying Gilead Sciences Inc. (GILD) Stock Is A Smart Move Today?


Gilead Sciences Inc. (NASDAQ:GILD) finished Thursday with an addition of $0.27 to close at $63.77, an upside of 0.43 percent. An average of 7,955,160 shares of common stock have been traded in the last five days. There was a fall of -$1.23 in the past week, and it reached a new high 6 times over the past 12 months. The last 20 days have seen an average of 7,988,640 shares traded, while the 50-day average volume stands at 6,934,504.

GILD stock has increased by 0.14% in the last month. The company shares reached their 1-month lowest point of $61.48 on 08/29/22. With the stock rallying to its 52-week high on 01/04/22, shares of the company touched a low of $57.17 and a high of $74.12 in 52 weeks. It has reached a new high 2 times so far this year and lost -12.17% or -$8.84 in price. In spite of this, the price is down -13.96% from the 52-week high.

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Insider Transactions

196 days have passed since Gilead Sciences Inc. (GILD) last reported insider trading activity. Pletcher Brett A, who is EVP,Corp Affairs & Gen Counsel, most recently acquired $3,634 shares at $58.24 per share on Mar 11. In this transaction, the insider spent $211,644. EVP,Corp Affairs & Gen Counsel, Pletcher Brett A, disposed of 1,691 shares at a price of $63.89 on Feb 09. The insider now owns more than $108,038 worth of shares. Prior to that, EVP,Corp Affairs & Gen Counsel Pletcher Brett A went on to Sale 14,061 shares at $68.54 each on Feb 01. An amount of $963,682 was transacted.

Valuation Metrics

Gilead Sciences Inc. (GILD) has a trailing price-to-earnings (P/E) ratio of 19.44. The stock’s beta is 0.33. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.88, the price-to-book (PB) ratio at 3.96, and the price-to-cash flow ratio at 13.76.

The company has a payout ratio of 87.40%. The company’s most recent quarterly dividend payment was $0.73 a share, without any change from last year. Its latest increase dividend $0.02 reported on Tuesday February 1 2022.

Financial Health

The quick ratio of Gilead Sciences Inc. for the three months ended March 30 was 1.30, and the current ratio was 1.40, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.25 and a total debt to equity ratio of 1.30 for the quarter ending March 30. Its gross profit as reported stood at $20.7 billion compared to revenue of $27.3 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Gilead Sciences Inc.’s return on assets was 6.30%.

Earnings Surprise

For the three-month period that ended March 30, Gilead Sciences Inc. had $924.0 million in cash and short-term investments compared to $25.2 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $1.14 billion in the quarter, while revenues were shrunk -33.04%. The analyst consensus anticipated Gilead Sciences Inc.’s latest quarter earnings to come in at $1.81 per share, but it turned out to be $2.12, a 17.10% surprise. For the quarter, EBITDA amounted to $2.55 billion. Shareholders own equity worth $1.25 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Gilead Sciences Inc. (GILD) price momentum. RSI 9-day as of the close on 22 September was 43.82%, suggesting the stock is Neutral, with historical volatility in this time frame at 34.63%.

As of today, GILD’s price is $64.65 -1.89% or -$1.23 from its 5-day moving average. GILD is currently trading +0.24% higher than its 20-day SMA and +7.47% higher than its 100-day SMA. However, the stock’s current price level is +2.10% above the SMA50 and -8.24% below the SMA200.

The stochastic %K and %D were 19.31% and 33.31%, respectively, and the average true range (ATR) was 1.55. With the 14-day stochastic at 15.95% and the average true range at 1.49, the RSI (14) stands at 47.56%. The stock has reached -1.22 on the 9-day MACD Oscillator while the 14-day reading was at -0.97.

Analyst Ratings

Cantor Fitzgerald launched coverage on Gilead Sciences Inc. (NASDAQ: GILD) in its analyst report released on July 13, 2022. The firm assigned the stock a Neutral rating. The consensus rating for Gilead Sciences Inc. (GILD) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell GILD, while 19 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 8 others rate it as a “buy”.

What is GILD’s price target for the next 12 months?

Analysts predict a range of price targets between $56.00 and $90.00, with a median target of $70.00. Taking a look at these predictions, the average price target given by analysts for Gilead Sciences Inc. (GILD) stock is $70.60.


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