Zacks Investment Research Lowers Gilead Sciences (GILD) to Sell

Gilead Sciences (NASDAQ:GILD) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Thursday.

According to Zacks, “Gilead’s HCV franchise is under tremendous pressure due to lower patient starts and increasing competition. Higher discounts and payer mix continue to hurt sales. Sales are expected to decline further. Moreover, Gilead has lost exclusivity for Viread and Truvada. Meanwhile, the HIV franchise maintains momentum driven by the rapid adoption of TAF-based regimens in the United States and EU. The TAF-based regimens now represent 56% of total Gilead HIV prescription volume following the launch of Genvoya and the launches of Odefsey and Descovy in 2016. However, Gilead also faces competition from generic HIV products which should impact sales. Nevertheless, the acquisition of Kite and the subsequent approval of Yescarta bodes well for Gilead given the potential in the CAR T therapy. Shares of the company have outperformed the industry in the last six months.”

Other equities analysts have also recently issued reports about the company. Leerink Swann lifted their price objective on Gilead Sciences from $84.00 to $85.00 and gave the company a “market perform” rating in a report on Thursday, October 19th. Maxim Group reaffirmed a “hold” rating on shares of Gilead Sciences in a report on Thursday, October 19th. Mizuho lifted their price objective on Gilead Sciences from $77.00 to $83.00 and gave the company a “buy” rating in a report on Wednesday, November 8th. Vetr cut Gilead Sciences from a “strong-buy” rating to a “buy” rating and set a $90.00 price objective for the company. in a report on Wednesday. Finally, CIBC assumed coverage on Gilead Sciences in a report on Thursday, October 5th. They issued a “market perform” rating for the company. One research analyst has rated the stock with a sell rating, thirteen have issued a hold rating and eighteen have issued a buy rating to the stock. Gilead Sciences currently has an average rating of “Buy” and an average target price of $85.53.

Shares of Gilead Sciences (GILD) traded down $0.19 during midday trading on Thursday, reaching $80.98. The company’s stock had a trading volume of 6,794,345 shares, compared to its average volume of 8,110,000. The firm has a market cap of $105,750.00, a PE ratio of 9.21, a PEG ratio of -1.76 and a beta of 1.13. The company has a debt-to-equity ratio of 1.10, a current ratio of 3.68 and a quick ratio of 3.56. Gilead Sciences has a 52-week low of $63.76 and a 52-week high of $86.27.

Gilead Sciences (NASDAQ:GILD) last announced its quarterly earnings data on Thursday, October 26th. The biopharmaceutical company reported $2.27 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $2.13 by $0.14. The firm had revenue of $6.51 billion during the quarter, compared to analysts’ expectations of $6.40 billion. Gilead Sciences had a return on equity of 57.15% and a net margin of 42.22%. The company’s quarterly revenue was down 13.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.75 EPS. equities research analysts expect that Gilead Sciences will post 8.53 earnings per share for the current fiscal year.

In related news, EVP Gregg H. Alton sold 30,000 shares of the business’s stock in a transaction on Thursday, January 11th. The stock was sold at an average price of $79.00, for a total transaction of $2,370,000.00. Following the sale, the executive vice president now owns 57,114 shares in the company, valued at approximately $4,512,006. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Gregg H. Alton sold 15,000 shares of the business’s stock in a transaction on Wednesday, November 1st. The stock was sold at an average price of $74.82, for a total value of $1,122,300.00. Following the sale, the executive vice president now owns 77,363 shares in the company, valued at approximately $5,788,299.66. The disclosure for this sale can be found here. In the last quarter, insiders sold 591,666 shares of company stock worth $44,466,567. Corporate insiders own 1.30% of the company’s stock.

Hedge funds have recently modified their holdings of the stock. FMR LLC grew its position in Gilead Sciences by 1.1% during the 2nd quarter. FMR LLC now owns 23,037,303 shares of the biopharmaceutical company’s stock worth $1,630,581,000 after acquiring an additional 258,005 shares during the last quarter. Vanguard Group Inc. grew its position in Gilead Sciences by 2.4% during the 2nd quarter. Vanguard Group Inc. now owns 92,841,960 shares of the biopharmaceutical company’s stock worth $6,571,355,000 after acquiring an additional 2,148,697 shares during the last quarter. Northern Trust Corp grew its position in shares of Gilead Sciences by 0.7% in the 2nd quarter. Northern Trust Corp now owns 16,430,476 shares of the biopharmaceutical company’s stock valued at $1,162,949,000 after buying an additional 116,780 shares during the last quarter. Toronto Dominion Bank grew its position in shares of Gilead Sciences by 19.0% in the 2nd quarter. Toronto Dominion Bank now owns 472,577 shares of the biopharmaceutical company’s stock valued at $33,445,000 after buying an additional 75,364 shares during the last quarter. Finally, Fagan Associates Inc. grew its position in shares of Gilead Sciences by 2.6% in the 2nd quarter. Fagan Associates Inc. now owns 33,075 shares of the biopharmaceutical company’s stock valued at $2,341,000 after buying an additional 845 shares during the last quarter. Institutional investors and hedge funds own 75.95% of the company’s stock.

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About Gilead Sciences

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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