Investors Buy High Volume of Call Options on Gilead Sciences (NASDAQ:GILD)

Gilead Sciences, Inc. (NASDAQ:GILD) saw unusually large options trading activity on Monday. Investors acquired 12,503 call options on the stock. This represents an increase of approximately 54% compared to the average volume of 8,104 call options.

Gilead Sciences Stock Performance

Shares of NASDAQ:GILD opened at $146.41 on Tuesday. The company has a current ratio of 1.27, a quick ratio of 1.09 and a debt-to-equity ratio of 2.03. Gilead Sciences has a 12 month low of $108.46 and a 12 month high of $157.29. The company has a market capitalization of $181.54 billion, a price-to-earnings ratio of -54.84 and a beta of 0.33. The firm’s 50-day moving average is $138.82 and its 200 day moving average is $136.18.

Gilead Sciences (NASDAQ:GILD) last announced its quarterly earnings data on Monday, August 3rd. The biopharmaceutical company reported ($6.75) earnings per share (EPS) for the quarter, topping the consensus estimate of ($7.25) by $0.50. The business had revenue of $7.80 billion during 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%. The firm’s quarterly revenue was up 10.6% compared to the same quarter last year. During the same quarter last year, the firm earned $2.01 earnings per share. Research analysts predict that Gilead Sciences will post -0.48 EPS for the current year.

Gilead Sciences Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 29th. Investors of record on Tuesday, September 15th will be issued a dividend of $0.82 per share. The ex-dividend date is Tuesday, September 15th. This represents a $3.28 dividend on an annualized basis and a yield of 2.2%. Gilead Sciences’s payout ratio is presently -122.85%.

Insider Buying and Selling

In related news, Director Jeffrey Bluestone sold 5,000 shares of the company’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $145.02, for a total transaction of $725,100.00. Following the sale, the director owned 10,066 shares of the company’s stock, valued at $1,459,771.32. This represents a 33.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Daniel O’Day sold 15,000 shares of the stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $148.64, for a total transaction of $2,229,600.00. Following the transaction, the chief executive officer owned 577,133 shares of the company’s stock, valued at $85,785,049.12. This trade represents a 2.53% 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 99,000 shares of company stock valued at $13,747,860 in the last three months. Corporate insiders own 0.30% of the company’s stock.

Institutional Trading of Gilead Sciences

Several institutional investors and hedge funds have recently made changes to their positions in GILD. Essex Financial Services Inc. raised its stake in shares of Gilead Sciences by 0.9% in the fourth quarter. Essex Financial Services Inc. now owns 7,724 shares of the biopharmaceutical company’s stock valued at $948,000 after acquiring an additional 71 shares in the last quarter. Davidson Trust Co. grew its stake in Gilead Sciences by 4.1% during the 1st quarter. Davidson Trust Co. now owns 1,879 shares of the biopharmaceutical company’s stock worth $262,000 after purchasing an additional 74 shares in the last quarter. Financial Connections Group Inc. increased its holdings in Gilead Sciences by 30.2% during the 1st quarter. Financial Connections Group Inc. now owns 328 shares of the biopharmaceutical company’s stock worth $45,000 after purchasing an additional 76 shares during the period. Wilkerson Advisory Group LLC increased its holdings in Gilead Sciences by 54.2% during the 1st quarter. Wilkerson Advisory Group LLC now owns 222 shares of the biopharmaceutical company’s stock worth $31,000 after purchasing an additional 78 shares during the period. Finally, Balboa Wealth Partners raised its position in Gilead Sciences by 2.7% in the 1st quarter. Balboa Wealth Partners now owns 3,057 shares of the biopharmaceutical company’s stock valued at $426,000 after purchasing an additional 79 shares in the last quarter. 83.67% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several research firms recently commented on GILD. Cantor Fitzgerald reiterated an “overweight” rating and issued a $155.00 price target on shares of Gilead Sciences in a research report on Wednesday, August 5th. Daiwa Securities Group decreased their price objective on Gilead Sciences from $161.00 to $150.00 and set an “outperform” rating on the stock in a research report on Tuesday, May 19th. Weiss Ratings cut Gilead Sciences from a “buy (b-)” rating to a “hold (c-)” rating in a report on Tuesday, August 11th. Needham & Company LLC reissued a “buy” rating and set a $170.00 target price on shares of Gilead Sciences in a research report on Wednesday, August 5th. Finally, Zacks Research upgraded Gilead Sciences from a “hold” rating to a “strong-buy” rating in a report on Monday, August 31st. One analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $158.78.

About Gilead Sciences

Gilead Sciences, Inc is a biopharmaceutical company that discovers, develops and commercializes medicines for serious and life-threatening diseases. The company’s research focuses primarily on virology, oncology, inflammation and related areas, with products serving patients in the United States and international markets.

Gilead is best known for its HIV treatments, including Biktarvy, Genvoya, Descovy and other antiretroviral therapies. Its portfolio also includes medicines for viral hepatitis, such as Epclusa and Vemlidy, and Veklury (remdesivir), an antiviral treatment for COVID-19.