Gilead Sciences, Inc. (GILD) Shares Tumble – Is it Time to Buy?


As the Dow Plunges more than 400 points in early afternoon trading, taking companies like Gilead Sciences, Inc. (NASDAQ:GILD) with it, investors now are asking themselves if this is the buying opportunity they have been waiting for. With the stock trading at about the same price in which it opened 2015, many wonder if 2016 will have a better outcome. While Gilead Sciences, Inc. (NASDAQ:GILD) seems to be starting 2016 right where they left off 2015, via a declining share price, with a PE ratio in the 8’s and a 1.76% dividend yield, it may soon be about time to load the boat if you believe in the work that the company is doing.

As today’s drop is mainly due to the overall market decline, and earnings are expected on February 1st, those who believe that profits will be better than expected should see this as an opportunity to buy. We will be watching the market closely over the remainder of the week to see if the downtrend continues or if things bounce back tomorow and Wedenesday. The stock is down 3.49% or $3.53 following the news, hitting $97.66 per share. Approximately 7.29M shares traded hands. GILD shares have declined 9.87% since May 29, 2015 and are currently downtrending. It has underperformed the S&P500 by 6.86%.

From a total of 11 analysts covering Gilead Sciences (NASDAQ:GILD) stock, 8 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 73% of the ratings are positive. The highest target price is $137 while the lowest target price is $107. The mean of all analyst targets is $126.24 which is 29.26% above today’s ($97.66) stock price. Gilead Sciences was the topic of 22 analyst reports since July 29, 2015 according to the firm StockzIntelligence Inc. Atlantic Securities initiated shares on December 18 with a “Neutral” rating. Jyske Bank upgraded shares to a”Strong Buy” rating and a $125 target share price in their report from a September 10. Piper Jaffray upgraded GILD stock in a recent report from November 5 to a “Overweight” rating. Vetr upgraded the rating on August 17. Vetr has a “Buy” rating and a $129.16 price target on shares. Finally, Oppenheimer maintained the stock with a “Outperform” rating in a report they issued on an October 20.

The institutional sentiment increased to 1.52 in Q2 2015. It’s up 0.36, from 1.16 in 2015Q2. The ratio increased, as 89 funds sold all their Gilead Sciences, Inc. shares they owned while 467 reduced their positions. 118 funds bought stakes while 728 increased their total positions. Institutions now own 1.15 billion shares which is 2.16% less than the previous share count of 1.17 billion in 2015Q2.

Pathstone Family Office Llc holds 15.89% of its total portfolio in Gilead Sciences, Inc., equating to 60,008 shares. Healthinvest Partners Ab owns 249,300 shares representing 14.48% of their total US portfolio. Moreover, Domini Social Investments Llc has 14.12% of their total portfolio invested in the company, equating to 8,798 shares. The New York-based R. G. Niederhoffer Capital Management Inc has a total of 12.17% of their portfolio invested in the stock. Hollow Brook Wealth Management Llc, a New York-based fund reported 239,473 shares owned.

Since March 4, 2015, the stock had 0 buys, and 25 sales for a total of $150.50 million in net activity. Alton Gregg H sold 5,000 shares worth $550,000. Cogan John Francis sold 15,000 shares worth $1.65 million. Bischofberger Norbert W sold 70,000 shares worth $7.00 million. Milligan John F sold 100,000 shares worth $9.92 million. The insider Carter Paul Rutherford sold 2,000 shares worth $197,180.

Gilead Sciences, Inc. , is a research biopharmaceutical firm that discovers, develops and commercializes innovative medicines. The company has a market cap of $146.33 billion. The Company’s primary areas of focus include human immunodeficiency virus (HIV), liver diseases such as chronic hepatitis C virus (HCV) infection and chronic hepatitis B virus (HBV) infection, oncology and inflammation, and serious cardiovascular and respiratory conditions. It has 8.95 P/E ratio. The Company’s HIV products include Stribild, Complera/Eviplera, Atripla, Truvada, Viread, Emtriva, Tybost and Vitekta.