Gilead Sciences Target of Unusually High Options Trading (NASDAQ:GILD)

Key Points

• Gilead Sciences saw unusually heavy options activity on Tuesday, with traders purchasing 16,649 call options—about 112% above the typical daily volume.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $158.04; HSBC, Citigroup, and Cantor Fitzgerald recently raised or maintained bullish targets.
• Gilead shares rose 1.0% to $134.45, while the company reported quarterly revenue of $7.80 billion, above expectations, and announced a quarterly dividend of $0.82 per share.

Gilead Sciences, Inc. (NASDAQ:GILD - Get Free Report) was the target of unusually large options trading on Tuesday. Traders acquired 16,649 call options on the stock. This is an increase of approximately 112% compared to the typical daily volume of 7,845 call options.

Insider Activity at Gilead Sciences

In related news, CFO Andrew D. Dickinson sold 3,000 shares of the firm's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $132.27, for a total transaction of $396,810.00. Following the completion of the sale, the chief financial officer owned 173,191 shares in the company, valued at approximately $22,907,973.57. This trade represents a 1.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Daniel Patrick O'day sold 15,000 shares of Gilead Sciences stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $130.31, for a total transaction of $1,954,650.00. Following the completion of the sale, the chief executive officer directly owned 592,133 shares in the company, valued at $77,160,851.23. This trade represents a 2.47% 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. Over the last 90 days, insiders sold 82,000 shares of company stock worth $10,641,790. 0.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Gilead Sciences

A number of institutional investors have recently made changes to their positions in GILD. Brighton Jones LLC boosted its stake in Gilead Sciences by 20.6% during the 4th quarter. Brighton Jones LLC now owns 14,359 shares of the biopharmaceutical company's stock valued at $1,326,000 after purchasing an additional 2,450 shares during the last quarter. Bison Wealth LLC bought a new position in shares of Gilead Sciences during the fourth quarter valued at $215,000. Sivia Capital Partners LLC boosted its position in shares of Gilead Sciences by 16.8% during the second quarter. Sivia Capital Partners LLC now owns 4,182 shares of the biopharmaceutical company's stock valued at $464,000 after buying an additional 602 shares during the last quarter. Ieq Capital LLC boosted its position in shares of Gilead Sciences by 12.0% during the second quarter. Ieq Capital LLC now owns 118,695 shares of the biopharmaceutical company's stock valued at $13,160,000 after buying an additional 12,705 shares during the last quarter. Finally, Diversify Advisory Services LLC grew its stake in shares of Gilead Sciences by 18.6% in the second quarter. Diversify Advisory Services LLC now owns 4,296 shares of the biopharmaceutical company's stock worth $516,000 after acquiring an additional 674 shares during the period. Hedge funds and other institutional investors own 83.67% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have issued reports on GILD. HSBC raised shares of Gilead Sciences from a "hold" rating to a "buy" rating and boosted their target price for the company from $133.00 to $155.00 in a report on Monday, July 6th. Cantor Fitzgerald reissued an "overweight" rating and issued a $155.00 price target on shares of Gilead Sciences in a research note on Wednesday, August 5th. The Goldman Sachs Group increased their price objective on Gilead Sciences from $125.00 to $130.00 and gave the company a "neutral" rating in a research report on Friday, April 17th. Citigroup lifted their target price on shares of Gilead Sciences from $156.00 to $165.00 and gave the stock a "buy" rating in a research report on Monday, April 13th. Finally, Daiwa Securities Group lowered their price objective on Gilead Sciences from $161.00 to $150.00 and set an "outperform" rating for the company in a research report on Tuesday, May 19th. Twenty-five investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, Gilead Sciences presently has a consensus rating of "Moderate Buy" and a consensus target price of $158.04.

Gilead Sciences Stock Up 1.0%

GILD traded up $1.39 during midday trading on Tuesday, reaching $134.45. The company's stock had a trading volume of 1,345,426 shares, compared to its average volume of 7,156,516. Gilead Sciences has a 1 year low of $108.46 and a 1 year high of $157.29. The company has a current ratio of 1.27, a quick ratio of 1.09 and a debt-to-equity ratio of 2.03. The firm has a market capitalization of $166.93 billion, a price-to-earnings ratio of -50.41 and a beta of 0.32. The stock's 50-day moving average is $129.45 and its 200-day moving average is $136.34.

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

Gilead Sciences Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 29th. Stockholders of record on Tuesday, September 15th will be paid a $0.82 dividend. This represents a $3.28 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Tuesday, September 15th. Gilead Sciences's dividend payout ratio is currently -122.85%.

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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