Gilead Sciences (NASDAQ:GILD) Hits New 12-Month High After Strong Earnings

Key Points

• Gilead Sciences reached a new 52-week high of $121.38 following an earnings report that beat expectations, reporting $2.01 EPS and $7.08 billion in revenue.
• Analysts maintain a generally positive outlook, with multiple firms upgrading their ratings and several price targets ranging from $125 to $135.
• Insiders have recently sold shares, indicating potential profit-taking, as CFO Andrew D. Dickinson and Director Jeffrey Bluestone made notable transactions.

Gilead Sciences, Inc. (NASDAQ:GILD - Get Free Report)'s share price hit a new 52-week high during trading on Friday following a better than expected earnings announcement. The company traded as high as $121.38 and last traded at $118.60, with a volume of 2883145 shares. The stock had previously closed at $110.28.

The biopharmaceutical company reported $2.01 earnings per share for the quarter, topping analysts' consensus estimates of $1.96 by $0.05. The business had revenue of $7.08 billion for the quarter, compared to analyst estimates of $6.95 billion. Gilead Sciences had a return on equity of 50.99% and a net margin of 21.86%. The firm's revenue was up 1.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.01 EPS.

Gilead Sciences Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 29th. Shareholders of record on Monday, September 15th will be issued a $0.79 dividend. This represents a $3.16 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend is Monday, September 15th. Gilead Sciences's dividend payout ratio is currently 62.95%.

Analysts Set New Price Targets

GILD has been the topic of a number of research reports. Morgan Stanley upped their price objective on Gilead Sciences from $130.00 to $135.00 and gave the company an "overweight" rating in a report on Friday, April 25th. Royal Bank Of Canada upped their price objective on Gilead Sciences from $96.00 to $98.00 and gave the stock a "sector perform" rating in a research report on Friday. Oppenheimer dropped their target price on Gilead Sciences from $132.00 to $125.00 and set an "outperform" rating for the company in a research report on Friday, April 25th. UBS Group increased their price target on Gilead Sciences from $108.00 to $112.00 and gave the company a "neutral" rating in a research note on Friday. Finally, Needham & Company LLC raised Gilead Sciences from a "hold" rating to a "buy" rating and set a $133.00 target price for the company in a research note on Friday, July 25th. Seven research analysts have rated the stock with a hold rating, sixteen have assigned a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $114.82.

Insider Transactions at Gilead Sciences

In other news, insider Johanna Mercier sold 3,000 shares of the company's stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $111.03, for a total value of $333,090.00. Following the completion of the transaction, the insider directly owned 117,168 shares in the company, valued at approximately $13,009,163.04. This represents a 2.50% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Andrew D. Dickinson sold 2,500 shares of the company's stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $111.03, for a total value of $277,575.00. Following the completion of the transaction, the chief financial officer owned 162,610 shares of the company's stock, valued at $18,054,588.30. The trade was a 1.51% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 82,000 shares of company stock valued at $8,984,175. Corporate insiders own 0.27% of the company's stock.

Hedge Funds Weigh In On Gilead Sciences

A number of hedge funds and other institutional investors have recently modified their holdings of GILD. Brighton Jones LLC lifted its stake in shares of Gilead Sciences by 20.6% in the 4th quarter. Brighton Jones LLC now owns 14,359 shares of the biopharmaceutical company's stock valued at $1,326,000 after acquiring an additional 2,450 shares during the last quarter. Rockefeller Capital Management L.P. raised its position in Gilead Sciences by 1.8% during the 4th quarter. Rockefeller Capital Management L.P. now owns 76,447 shares of the biopharmaceutical company's stock valued at $7,055,000 after purchasing an additional 1,348 shares during the last quarter. Sagespring Wealth Partners LLC bought a new position in shares of Gilead Sciences in the 4th quarter worth approximately $1,103,000. Advisors Capital Management LLC raised its position in shares of Gilead Sciences by 1.7% in the 4th quarter. Advisors Capital Management LLC now owns 39,163 shares of the biopharmaceutical company's stock worth $3,617,000 after acquiring an additional 654 shares in the last quarter. Finally, Savvy Advisors Inc. bought a new position in shares of Gilead Sciences in the 4th quarter worth approximately $216,000. 83.67% of the stock is currently owned by hedge funds and other institutional investors.

Gilead Sciences Price Performance

The stock has a market cap of $148.31 billion, a P/E ratio of 23.81, a price-to-earnings-growth ratio of 0.75 and a beta of 0.33. The firm has a 50-day moving average price of $111.16 and a 200-day moving average price of $107.83. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.15 and a current ratio of 1.32.

About Gilead Sciences

Gilead Sciences, Inc, a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, Sunlencs, and Atripla products for the treatment of HIV/AIDS; Veklury, an injection for intravenous use, for the treatment of COVID-19; and Epclusa, Harvoni, Vemlidy, and Viread for the treatment of viral hepatitis.