Connor Clark & Lunn Investment Management Ltd. Invests $5.87 Million in Gilead Sciences, Inc. $GILD

Key Points

• Connor Clark & Lunn Investment Management purchased 46,429 Gilead Sciences shares worth approximately $5.87 million in the second quarter. Institutional investors collectively own 83.67% of the company.
• Gilead received FDA approval for its once-daily Bixlenvo HIV regimen and EU approval for Trodelvy plus Keytruda in certain metastatic triple-negative breast cancer cases, strengthening its HIV and oncology growth prospects.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and average price target of $158.04. Shares recently opened at $148.86, while the company announced a quarterly dividend of $0.82 per share, yielding about 2.2% annually.

Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Gilead Sciences, Inc. (NASDAQ:GILD - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 46,429 shares of the biopharmaceutical company's stock, valued at approximately $5,866,000.

A number of other hedge funds and other institutional investors have also bought and sold shares of GILD. Meiji Yasuda Asset Management Co Ltd. bought a new stake in shares of Gilead Sciences during the second quarter worth $4,222,000. DLD Asset Management LP bought a new stake in Gilead Sciences during the 2nd quarter valued at about $253,000. Te Ahumairangi Investment Management Ltd purchased a new stake in Gilead Sciences in the 2nd quarter valued at about $6,183,000. Burk Holdings LLC bought a new position in Gilead Sciences in the 2nd quarter worth about $46,000. Finally, Kiltearn Partners LLP bought a new position in Gilead Sciences in the 2nd quarter worth about $11,986,000. Hedge funds and other institutional investors own 83.67% of the company's stock.

Key Headlines Impacting Gilead Sciences

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

• Positive Sentiment: The U.S. Food and Drug Administration approved Bixlenvo, Gilead’s once-daily single-tablet HIV regimen combining bictegravir and lenacapavir. It is the first and only single-tablet option for virologically suppressed adults on complex treatment regimens who cannot use currently available alternatives. The approval could broaden Gilead’s HIV franchise and supports its strategy of using lenacapavir in long-term HIV treatment and prevention. Reuters FDA approval article
• Positive Sentiment: The European Commission approved Trodelvy plus Keytruda for certain first-line metastatic triple-negative breast cancer patients. The label expansion strengthens Gilead’s oncology franchise and provides another potential source of revenue growth beyond its core HIV business. EU Trodelvy approval article
• Positive Sentiment: Recent investor commentary points to continued optimism around Gilead’s HIV prevention medicines, including the potential growth of its PrEP portfolio. Analysts and investors also view the stock as potentially undervalued relative to its fundamentals despite a strong five-year performance, which may support further interest. Gilead HIV catalyst article
• Neutral Sentiment: Gilead will present at the Wells Fargo, Cantor and Morgan Stanley healthcare conferences in September. These events could provide updates on Bixlenvo, HIV prevention, Trodelvy and the broader pipeline, but they do not create an immediate change to financial results. Gilead investor conferences announcement
• Negative Sentiment: Director Anthony Welters sold 18,000 shares worth approximately $2.68 million, reducing his holdings by about 58%. The transaction was conducted under a pre-arranged Rule 10b5-1 plan, which makes it a weaker bearish signal than a discretionary insider sale, but it may still modestly weigh on sentiment. SEC insider transaction filing

Analysts Set New Price Targets

Several research analysts recently issued reports on the company. Weiss Ratings cut Gilead Sciences from a "buy (b-)" rating to a "hold (c-)" rating in a research note on Tuesday, August 11th. Needham & Company LLC restated a "buy" rating and set a $170.00 price target on shares of Gilead Sciences in a research note on Wednesday, August 5th. Maxim Group raised shares of Gilead Sciences from a "hold" rating to a "buy" rating and set a $165.00 price objective for the company in a research note on Wednesday, May 20th. Truist Financial dropped their target price on shares of Gilead Sciences from $157.00 to $156.00 and set a "buy" rating on the stock in a report on Tuesday, July 7th. Finally, Leerink Partners downgraded shares of Gilead Sciences from an "outperform" rating to a "market perform" rating and cut their target price for the company from $146.00 to $127.00 in a research report on Tuesday, July 21st. Twenty-four equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, Gilead Sciences has a consensus rating of "Moderate Buy" and an average price target of $158.04.

Gilead Sciences Stock Performance

Shares of Gilead Sciences stock opened at $148.86 on Friday. The firm has a market capitalization of $184.58 billion, a P/E ratio of -55.75 and a beta of 0.32. The company has a quick ratio of 1.09, a current ratio of 1.27 and a debt-to-equity ratio of 2.03. The company has a 50 day moving average price of $133.81 and a 200 day moving average price of $136.55. Gilead Sciences, Inc. has a 52 week low of $108.46 and a 52 week high of $157.29.

Gilead Sciences (NASDAQ:GILD - Get Free Report) last released its earnings results on Monday, August 3rd. The biopharmaceutical company reported ($6.75) earnings per share for the quarter, topping the consensus estimate of ($7.25) by $0.50. The company had revenue of $7.80 billion for the quarter, compared to the consensus estimate of $7.40 billion. Gilead Sciences had a negative net margin of 10.64% and a negative return on equity of 2.11%. Gilead Sciences's revenue was up 10.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.01 EPS. Sell-side analysts expect that Gilead Sciences, Inc. will post -0.5 EPS for the current year.

Gilead Sciences Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 29th. Investors of record on Tuesday, September 15th will be given a $0.82 dividend. This represents a $3.28 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Tuesday, September 15th. Gilead Sciences's dividend payout ratio is presently -122.85%.

Insider Activity at Gilead Sciences

In related news, insider Johanna Mercier sold 28,000 shares of Gilead Sciences stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $137.64, for a total transaction of $3,853,920.00. Following the completion of the sale, the insider owned 118,234 shares of the company's stock, valued at $16,273,727.76. The trade was a 19.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Andrew D. Dickinson sold 3,000 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $138.36, for a total transaction of $415,080.00. Following the completion of the transaction, the chief financial officer owned 165,646 shares in the company, valued at approximately $22,918,780.56. This trade represents a 1.78% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 105,000 shares of company stock worth $14,238,120 in the last quarter. 0.30% of the stock is owned by insiders.

About Gilead Sciences

Gilead Sciences, Inc, founded in 1987 and headquartered in Foster City, California, is a biopharmaceutical company focused on the discovery, development and commercialization of medicines in areas of high unmet medical need. The company initially built its reputation in antiviral therapies and has since expanded into oncology, cell therapy and inflammatory diseases. Gilead operates a global research and commercial organization, conducting clinical development and selling medicines in markets around the world.

Gilead's product portfolio is anchored by antiviral therapies for HIV and viral hepatitis.

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