Gilead Sciences, Inc. (NASDAQ:GILD) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Friday, May 5th.
According to Zacks, “Although Gilead’s first-quarter results beat on earnings, revenues missed expectations. The HIV franchise maintains momentum driven by the rapid adoption of TAF-based regimens which now represent 42% of total Gilead HIV prescription volume following the launch of Genvoya and the launches of Odefsey and Descovy in 2016. Strong uptake for Truvada for use in the pre-exposure prophylaxis setting should also boost sales as the company saw a significant uptick in PrEP usage in 2017 with an estimated 125,000 patients using Truvada by the end of the first quarter. However, Gilead will lose exclusivity for Viread in 2017 in some countries outside the U.S. which should impact sales. However, the HCV franchise continues to be under competitive and pricing pressure leading to a massive decline in Harvoni and Sovaldi sales. The company expects that the persistent decline in HCV patient starts will be the primary factor behind the year-over-year decrease.”
A number of other analysts have also commented on the stock. Vetr upgraded shares of Gilead Sciences from a “buy” rating to a “strong-buy” rating and set a $74.58 price target for the company in a research note on Tuesday, April 18th. Jefferies Group LLC reiterated a “buy” rating and issued a $82.00 price target on shares of Gilead Sciences in a research note on Thursday, April 6th. Cowen and Company set a $100.00 price target on shares of Gilead Sciences and gave the stock a “buy” rating in a research note on Wednesday, January 18th. TheStreet lowered shares of Gilead Sciences from a “b-” rating to a “c+” rating in a research report on Wednesday, January 25th. Finally, JPMorgan Chase & Co. restated an “overweight” rating and set a $82.00 target price on shares of Gilead Sciences in a research report on Thursday, April 6th. Eleven equities research analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. Gilead Sciences has a consensus rating of “Buy” and an average price target of $80.61.
Shares of Gilead Sciences (NASDAQ:GILD) traded down 0.31% during midday trading on Friday, reaching $64.23. 8,429,358 shares of the company’s stock traded hands. Gilead Sciences has a 12 month low of $63.88 and a 12 month high of $88.85. The stock has a 50-day moving average price of $66.74 and a 200 day moving average price of $70.60. The firm has a market cap of $83.93 billion, a PE ratio of 6.79 and a beta of 1.11.
Gilead Sciences (NASDAQ:GILD) last announced its quarterly earnings results on Tuesday, May 2nd. The biopharmaceutical company reported $2.20 EPS for the quarter, topping analysts’ consensus estimates of $2.18 by $0.02. Gilead Sciences had a net margin of 44.43% and a return on equity of 92.36%. The firm had revenue of $6.51 billion during the quarter, compared to analyst estimates of $6.66 billion. Equities research analysts predict that Gilead Sciences will post $8.21 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 29th. Shareholders of record on Friday, June 16th will be issued a dividend of $0.52 per share. This represents a $2.08 annualized dividend and a yield of 3.24%. The ex-dividend date is Wednesday, June 14th. Gilead Sciences’s payout ratio is 18.91%.
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In other Gilead Sciences news, insider John C. Martin sold 73,333 shares of the stock in a transaction dated Monday, April 3rd. The shares were sold at an average price of $67.18, for a total transaction of $4,926,510.94. Following the completion of the sale, the insider now directly owns 3,199,969 shares of the company’s stock, valued at $214,973,917.42. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Gregg H. Alton sold 5,000 shares of the stock in a transaction dated Thursday, March 30th. The shares were sold at an average price of $67.48, for a total transaction of $337,400.00. Following the sale, the executive vice president now directly owns 117,988 shares of the company’s stock, valued at $7,961,830.24. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 88,276 shares of company stock worth $5,932,578. 1.40% of the stock is owned by company insiders.
Hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. raised its stake in Gilead Sciences by 2,789.0% in the first quarter. BlackRock Inc. now owns 102,969,463 shares of the biopharmaceutical company’s stock valued at $6,993,686,000 after buying an additional 99,405,266 shares during the last quarter. Norges Bank purchased a new stake in Gilead Sciences during the fourth quarter valued at approximately $997,048,000. Vanguard Group Inc. raised its stake in Gilead Sciences by 7.3% in the first quarter. Vanguard Group Inc. now owns 90,693,263 shares of the biopharmaceutical company’s stock valued at $6,159,886,000 after buying an additional 6,197,361 shares during the last quarter. Parnassus Investments CA raised its stake in Gilead Sciences by 37.4% in the first quarter. Parnassus Investments CA now owns 16,726,150 shares of the biopharmaceutical company’s stock valued at $1,110,228,000 after buying an additional 4,556,901 shares during the last quarter. Finally, The Manufacturers Life Insurance Company purchased a new stake in Gilead Sciences during the third quarter valued at approximately $271,588,000. 74.19% of the stock is owned by institutional investors and hedge funds.
Gilead Sciences Company Profile
Gilead Sciences, Inc is a research-based biopharmaceutical company that discovers, develops and commercializes medicines in areas of unmet medical need. The Company’s portfolio of products and pipeline of investigational drugs includes treatments for Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome (HIV/AIDS), liver diseases, cancer, inflammatory and respiratory diseases and cardiovascular conditions.
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