Gilead Sciences Inc. (GILD) Shares: Cheap or Risky?

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Gilead Sciences Inc. (NASDAQ:GILD) saw an upside of 0.27% to close Monday at $83.23 after adding $0.22 on the day. The 5-day average trading volume is 8,321,740 shares of the company’s common stock. It has gained $86.36 in the past week and touched a new high 1 time within the past 5 days. An average of 5,772,530 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 7,373,114.

GILD’s 1-month performance is -1.82% or -$1.52 on its low of $82.42 reached on 01/23/23. The company’s shares have touched a 52-week low of $57.17 and high of $89.74, with the stock’s rally to the 52-week high happening on 01/06/23. YTD, GILD has lost -3.05% or -$2.62 and has reached a new high 3 times. However, the current price is down -7.25% from the 52-week high price.

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Insider Transactions

GILD stock investors last saw insider trading activity on Dec 30.Parsey Merdad (Chief Medical Officer) most recently sold 553 shares at $85.33 per share on Dec 30. This transaction cost the insider $47,187. SVP, Controller & CAO, Wilfong Diane E., sold 6,416 shares at a price of $83.50 on Nov 09. Then, on Nov 01, SVP, Controller & CAO Wilfong Diane E. sold 16,255 shares at a price of $79.25 per share. This transaction amounted to $1,288,209.

Valuation Metrics

GILD stock has a beta of 0.42. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 3.88 while the price-to-book (PB) in the most recent quarter is 4.95, with the price to cash flow ratio at 19.77.

Gilead Sciences Inc.’s quick ratio for the period ended September 29 was 1.20, with the current ratio over the same period at 1.30. As well, the company’s long term debt to equity for the quarter ending September 29 was 1.09, while the total debt to equity was 1.20. In terms of profitability, the gross margin trailing 12 months is 74.60%. The firm’s gross profit as reported stood at $20.7 billion against revenue of $27.3 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Gilead Sciences Inc.’s cash and short-term investments amounted to $961.0 million against total debt of $26.22 billion. Net income and sales went up compared to those figures reported in the previous quarter. Net income shrunk -44.89% to $1.79 billion, while revenue of $1.14 billion was 36.05% off the previous quarter. Analysts expected GILD to announce $1.43 per share in earnings in its latest quarter, but it posted $1.9, representing a 32.90% surprise. EBITDA for the quarter stood at more than $3.36 billion. GILD stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 41.5 billion, with total debt at $26.22 billion. Shareholders hold equity totaling $1.25 billion.

Let’s look briefly at Gilead Sciences Inc. (GILD) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 36.30% to suggest the stock is trending Neutral, with historical volatility in this time period at 19.62%.

The stock’s 5-day moving average is $83.80, reflecting a -3.52% or -$3.04 change from its current price. GILD is currently trading -2.39% above its 20-day SMA, +33.27% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +1.22% and SMA200 by+39.30%.

Stochastic %K and %D was 9.92% and 9.34% and the average true range (ATR) pointed at 1.63. The RSI (14) points at 41.48%, while the 14-day stochastic is at 13.80% with the period’s ATR at 1.67. The stock’s 9-day MACD Oscillator is pointing at -1.75 and -2.09 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Gilead Sciences Inc. (NASDAQ: GILD), RBC Capital Mkts downgraded it to a Sector perform rating. They previously had an Outperform rating on the stock.

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

Analysts have a consensus price target ranging from a low of $69.00 and a high of $111.00, with their median price target at $88.00. Looking at these predictions, the average price target given by analysts is for Gilead Sciences Inc. (GILD) stock is $87.44.

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