Gilead Sciences (NASDAQ:GILD) Shares Gap Down After Earnings Miss

Gilead Sciences, Inc. (NASDAQ:GILD)’s share price gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $74.93, but opened at $72.33. Gilead Sciences shares last traded at $69.53, with a volume of 20,550,243 shares trading hands.

The biopharmaceutical company reported $1.11 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $1.57 by ($0.46). Gilead Sciences had a negative net margin of 1.16% and a positive return on equity of 32.17%. The company had revenue of $5.14 billion during the quarter, compared to analyst estimates of $5.24 billion.

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 29th. Stockholders of record on Tuesday, September 15th will be given a $0.68 dividend. This represents a $2.72 annualized dividend and a dividend yield of 3.91%. Gilead Sciences’s dividend payout ratio (DPR) is 44.30%.

Several analysts have recently issued reports on GILD shares. UBS Group lowered shares of Gilead Sciences from a “buy” rating to a “neutral” rating and lifted their target price for the company from $77.00 to $80.00 in a research report on Monday, April 27th. TheStreet lowered shares of Gilead Sciences from a “b” rating to a “c” rating in a research report on Thursday. Cantor Fitzgerald reissued a “buy” rating and issued a $86.00 price target on shares of Gilead Sciences in a research note on Friday. Jefferies Financial Group reissued a “buy” rating and issued a $97.00 price target on shares of Gilead Sciences in a research note on Tuesday, July 21st. Finally, JPMorgan Chase & Co. reissued a “hold” rating and issued a $85.00 price target on shares of Gilead Sciences in a research note on Tuesday, July 28th. Four analysts have rated the stock with a sell rating, sixteen have issued a hold rating and nine have assigned a buy rating to the company’s stock. Gilead Sciences has an average rating of “Hold” and a consensus target price of $79.63.

In other news, Director John Francis Cogan sold 2,416 shares of the business’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $81.75, for a total value of $197,508.00. Following the sale, the director now directly owns 57,276 shares of the company’s stock, valued at approximately $4,682,313. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Brett A. Pletcher sold 13,210 shares of the business’s stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $79.23, for a total transaction of $1,046,628.30. Following the completion of the sale, the executive vice president now directly owns 27,204 shares in the company, valued at $2,155,372.92. The disclosure for this sale can be found here. Insiders have sold 28,079 shares of company stock worth $2,240,630 over the last ninety days. 0.13% of the stock is owned by insiders.

Institutional investors have recently added to or reduced their stakes in the company. Baldwin Brothers Inc. MA raised its stake in shares of Gilead Sciences by 63.3% in the 1st quarter. Baldwin Brothers Inc. MA now owns 351 shares of the biopharmaceutical company’s stock valued at $26,000 after acquiring an additional 136 shares during the period. Bainco International Investors purchased a new stake in shares of Gilead Sciences in the 1st quarter valued at approximately $29,000. EPG Wealth Management LLC raised its stake in shares of Gilead Sciences by 186.7% in the 1st quarter. EPG Wealth Management LLC now owns 410 shares of the biopharmaceutical company’s stock valued at $30,000 after acquiring an additional 267 shares during the period. Modus Advisors LLC purchased a new stake in shares of Gilead Sciences in the 2nd quarter valued at approximately $38,000. Finally, Regal Wealth Group Inc. raised its stake in shares of Gilead Sciences by 400.0% in the 2nd quarter. Regal Wealth Group Inc. now owns 500 shares of the biopharmaceutical company’s stock valued at $38,000 after acquiring an additional 400 shares during the period. 78.74% of the stock is currently owned by institutional investors and hedge funds.

The company has a quick ratio of 2.92, a current ratio of 3.04 and a debt-to-equity ratio of 1.00. The stock has a market cap of $90.73 billion, a price-to-earnings ratio of -289.70, a PEG ratio of 2.43 and a beta of 0.70. The business’s fifty day moving average is $75.47 and its two-hundred day moving average is $73.57.

About Gilead Sciences (NASDAQ:GILD)

Gilead Sciences, Inc, a research-based biopharmaceutical company, discovers, develops, and commercializes medicines 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, and Truvada for the treatment of human immunodeficiency virus (HIV) infection in adults; and Vosevi, Vemlidy, Epclusa, Harvoni, and Viread products for treating liver diseases.

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