Zacks Investment Research Lowers Gilead Sciences (GILD) to Hold

Gilead Sciences (NASDAQ:GILD) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report issued on Tuesday.

According to Zacks, “Gilead’s HIV franchise maintains momentum driven by the rapid adoption of Descovy-based regimens. The FDA approval of Biktarvy has further widened the portfolio. Biktarvy has also been approved in Europe which should boost sales further. The launch of Yescarta is progressing well in the United States and the approval in Europe will further boost sales. Meanwhile, Gilead is intending to foray into the nonalcoholic steatohepatitis (NASH) and inflammation market with late-stage candidates,  selonsertib and filgotinib, respectively. A tentative approval will diversify Gilead’s portfolio. Shares have outperformed the industry in the year so far. However, Gilead’s HCV franchise is under pressure due to competitive and pricing pressure. The departure of the CEO at this crucial time further clouds the growth prospects of the company.”

GILD has been the subject of several other reports. Morgan Stanley raised their price objective on shares of Gilead Sciences from $81.00 to $85.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 26th. Piper Jaffray Companies set a $85.00 price objective on shares of Gilead Sciences and gave the stock a “buy” rating in a research report on Wednesday, September 12th. Raymond James began coverage on shares of Gilead Sciences in a research report on Thursday, June 28th. They set a “strong-buy” rating and a $93.00 price objective for the company. BidaskClub upgraded shares of Gilead Sciences from a “sell” rating to a “hold” rating in a research report on Tuesday, July 10th. Finally, Robert W. Baird cut shares of Gilead Sciences from an “outperform” rating to a “neutral” rating and set a $79.00 price objective for the company. in a research report on Thursday, July 26th. Two equities research analysts have rated the stock with a sell rating, eleven have issued a hold rating, eleven have assigned a buy rating and two have issued a strong buy rating to the company’s stock. Gilead Sciences currently has a consensus rating of “Buy” and a consensus price target of $88.30.

Gilead Sciences stock opened at $75.65 on Tuesday. Gilead Sciences has a 12-month low of $64.27 and a 12-month high of $89.54. The stock has a market cap of $97.21 billion, a P/E ratio of 10.79, a PEG ratio of -3.81 and a beta of 1.02. The company has a quick ratio of 2.92, a current ratio of 3.00 and a debt-to-equity ratio of 1.23.

Gilead Sciences (NASDAQ:GILD) last released its quarterly earnings data on Wednesday, July 25th. The biopharmaceutical company reported $1.91 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.56 by $0.35. Gilead Sciences had a net margin of 9.52% and a return on equity of 41.57%. The firm had revenue of $5.65 billion during the quarter, compared to analysts’ expectations of $5.20 billion. During the same period last year, the business earned $2.56 earnings per share. Gilead Sciences’s revenue was down 20.9% compared to the same quarter last year. equities research analysts predict that Gilead Sciences will post 6.56 earnings per share for the current year.

In other Gilead Sciences news, Director John C. Martin sold 50,000 shares of Gilead Sciences stock in a transaction dated Wednesday, August 1st. The shares were sold at an average price of $77.85, for a total transaction of $3,892,500.00. Following the completion of the sale, the director now directly owns 3,067,762 shares in the company, valued at $238,825,271.70. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Over the last quarter, insiders have sold 150,000 shares of company stock valued at $11,141,000. Company insiders own 1.30% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the business. Archford Capital Strategies LLC acquired a new position in shares of Gilead Sciences in the first quarter valued at approximately $106,000. Bay Colony Advisory Group Inc d b a Bay Colony Advisors acquired a new position in shares of Gilead Sciences in the second quarter valued at approximately $132,000. Brand Asset Management Group Inc. acquired a new position in shares of Gilead Sciences in the second quarter valued at approximately $139,000. Stelac Advisory Services LLC acquired a new position in shares of Gilead Sciences in the first quarter valued at approximately $141,000. Finally, Wealthsource Partners LLC acquired a new position in shares of Gilead Sciences in the second quarter valued at approximately $206,000. Institutional investors and hedge funds own 77.95% of the company’s stock.

About Gilead Sciences

Gilead Sciences, Inc, a biopharmaceutical company, discovers, develops, and commercializes therapeutics in the areas of unmet medical needs in the United States, Europe, and internationally. The company's products include Biktarvy, Descovy, Odefsey, Genvoya, Stribild, Complera/Eviplera, Atripla, Truvada, Viread, Emtriva, and Tybost for the treatment of human immunodeficiency virus (HIV) infection in adults; and Vosevi, Vemlidy, Epclusa, Harvoni, Sovaldi, Viread, and Hepsera products for treating liver diseases.

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