Gilead Sciences (NASDAQ:GILD) Hits New 1-Year High – What’s Next?

Gilead Sciences, Inc. (NASDAQ:GILD) shares hit a new 52-week high during trading on Thursday. The company traded as high as $176.05 and last traded at $174.4720, with a volume of 12,628 shares trading hands. The stock had previously closed at $174.48.

Gilead Sciences News Summary

Here are the key news stories impacting Gilead Sciences this week:

• Positive Sentiment: Gilead reported third-quarter revenue of $8.3 billion, beat earnings expectations, and raised full-year product sales guidance. It maintained its quarterly dividend at $0.82 per share. Did Earnings Beat Just Shift Gilead Sciences’ Investment Narrative?
• Positive Sentiment: DZ Bank raised its price target to $191 from $167, adding to the favorable analyst outlook. DZ Bank Adjusts Price Target on Gilead Sciences
• Positive Sentiment: Gilead and Kite plan 23 presentations, including seven oral presentations, at the December ASH meeting. The breadth of upcoming blood-cancer data could support investor expectations for the pipeline, though the data have yet to be presented. Gilead and Kite Advance Leadership With New Data
• Positive Sentiment: A new global Phase 3 collaboration with BioNTech will test a combination treatment for metastatic triple-negative breast cancer, extending Gilead’s oncology opportunity. Trial outcomes remain uncertain. BioNTech Enters First Global Phase 3 Trial
• Neutral Sentiment: Coverage also points to Gilead’s long-running dividend growth and HIV-driven free cash flow, which may reassure income investors; the company has raised its dividend for 11 consecutive years. Gilead Sciences Has Raised Its Dividend for 11 Straight Years
• Negative Sentiment: Management’s larger projected GAAP loss, attributed to sizeable acquired R&D charges, could weigh on reported earnings even as product sales guidance improves. Did Earnings Beat Just Shift Gilead Sciences’ Investment Narrative?

Analysts Set New Price Targets

Several equities research analysts have issued reports on GILD shares. Truist Financial lifted their price objective on Gilead Sciences from $158.00 to $181.00 and gave the stock a “buy” rating in a report on Friday, October 30th. TD Cowen upped their target price on Gilead Sciences from $160.00 to $175.00 and gave the company a “buy” rating in a research report on Friday, October 30th. Jefferies Financial Group set a $196.00 target price on Gilead Sciences in a research note on Wednesday. Barclays decreased their price target on shares of Gilead Sciences from $155.00 to $145.00 and set an “equal weight” rating for the company in a research report on Wednesday, July 29th. Finally, Morgan Stanley lifted their price target on shares of Gilead Sciences from $163.00 to $183.00 and gave the stock an “overweight” rating in a research note on Friday, October 30th. Twenty-three investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $170.15.

Gilead Sciences Stock Up 1.0%

The company has a debt-to-equity ratio of 1.84, a quick ratio of 0.95 and a current ratio of 1.38. The firm has a market capitalization of $218.59 billion, a P/E ratio of -55.55 and a beta of 0.35. The stock has a fifty day moving average price of $152.29 and a two-hundred day moving average price of $140.52.

Gilead Sciences (NASDAQ:GILD) last announced its quarterly earnings data on Thursday, October 29th. The biopharmaceutical company reported $2.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.19 by $0.36. The firm had revenue of $8.30 billion for the quarter, compared to analysts’ expectations of $7.81 billion. Gilead Sciences had a negative return on equity of 1.85% and a negative net margin of 12.47%. The firm’s revenue for the quarter was up 6.8% on a year-over-year basis. During the same period last year, the business posted $2.47 earnings per share. Research analysts forecast that Gilead Sciences, Inc. will post -1.07 EPS for the current year.

Gilead Sciences Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, December 30th. Stockholders of record on Tuesday, December 15th will be given a $0.82 dividend. This represents a $3.28 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Tuesday, December 15th. Gilead Sciences’s dividend payout ratio (DPR) is presently -103.80%.

Insiders Place Their Bets

In other news, insider Johanna Mercier sold 28,000 shares of Gilead Sciences stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $137.64, for a total value of $3,853,920.00. Following the completion of the transaction, the insider directly owned 118,234 shares of the company’s stock, valued at approximately $16,273,727.76. The trade was a 19.15% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Daniel O’Day sold 15,881 shares of the stock in a transaction dated Friday, October 30th. The stock was sold at an average price of $175.25, for a total transaction of $2,783,145.25. Following the sale, the chief executive officer owned 566,683 shares in the company, valued at approximately $99,311,195.75. This trade represents a 2.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 126,881 shares of company stock worth $19,252,455. Corporate insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Gilead Sciences

Hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new stake in shares of Gilead Sciences in the second quarter valued at approximately $15,393,785,000. Legal & General Group Plc bought a new stake in shares of Gilead Sciences during the second quarter valued at approximately $1,316,606,000. Deutsche Bank AG acquired a new position in shares of Gilead Sciences during the second quarter worth approximately $918,387,000. Jupiter Topco LLC acquired a new position in shares of Gilead Sciences during the second quarter worth approximately $448,021,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Gilead Sciences in the 2nd quarter worth approximately $398,905,000. 83.67% of the stock is currently owned by institutional investors.

Gilead Sciences Company Profile

Gilead Sciences, Inc is a biopharmaceutical company that discovers, develops and commercializes medicines for serious and life-threatening diseases. The company is best known for its HIV treatments, including Biktarvy, Descovy, Genvoya and Truvada, as well as therapies for chronic hepatitis B and hepatitis C. Its portfolio also includes Veklury (remdesivir), an antiviral treatment for COVID-19.

Gilead has expanded into oncology and cell therapy through products such as Trodelvy and the CAR T-cell therapies Yescarta and Tecartus, which are developed and marketed through its Kite subsidiary.