Investors are taking notice as Cookson Peirce & Co. Inc. significantly increased its stake in Gilead Sciences, Inc. (NASDAQ: GILD) by an impressive 249.1% during the third quarter of 2023. This surge was outlined in Cookson Peirce’s recent Form 13F filing with the Securities and Exchange Commission. Following the acquisition of an additional 7,168 shares, the fund now holds 10,045 shares of the biopharmaceutical company, valued at approximately $1,115,000.
Other institutional investors have also been adjusting their positions in Gilead. Rothschild Investment LLC raised its stake by 1.9% during the second quarter, now owning 4,539 shares valued at $503,000. Similarly, Hemington Wealth Management increased its holdings by 9.3% during the third quarter, acquiring 85 shares to bring its total to 998 shares, valued at $110,000. Other notable increases include Ignite Planners LLC, with a 1.1% rise to 7,932 shares valued at $880,000, and Archer Investment Corp, which raised its position by 1.2% to 7,277 shares worth $807,000. Whittier Trust Co. of Nevada Inc. also increased its holdings by 0.3%, owning 34,711 shares valued at $3,912,000. Currently, institutional investors own 83.67% of Gilead’s stock.
Positive Market Sentiment Surrounds Gilead Sciences
Gilead Sciences has recently enjoyed positive market sentiment, particularly following the release of its better-than-expected fourth-quarter results. Analysts have responded favorably, with several firms lifting their price targets. Wolfe Research increased its target to $170 with an “outperform” rating, while Oppenheimer set its target at $165. Additionally, TD Cowen and Deutsche Bank raised their targets to $160 and $155, respectively, reflecting a bullish outlook on Gilead’s near-term revenue and earnings per share trends.
The optimism doesn’t stop there. BofA also raised its price target to $162, reaffirming a “buy” recommendation, attributing this to confidence in Gilead’s product franchises. Buy ratings from other major banks, including J.P. Morgan and Scotiabank, further underscore institutional backing for Gilead following its recent performance.
Financial Performance and Future Guidance
On February 10, 2024, Gilead Sciences reported a robust earnings performance, delivering earnings per share (EPS) of $1.86, surpassing analysts’ estimates of $1.83 by $0.03. The company’s revenue for the quarter was reported at $7.93 billion, exceeding the consensus estimate of $7.68 billion. The quarterly revenue represented a 4.7% increase compared to the same period last year.
Looking ahead, Gilead has set its FY 2026 guidance for EPS between $8.450 and $8.850. Analysts project an average EPS of $7.95 for the current year, indicating strong market expectations.
In addition to its financial performance, Gilead recently announced a quarterly dividend of $0.82 per share, set to be paid on March 30, 2024. This marks an increase from the previous quarterly dividend of $0.79, translating to an annualized dividend of $3.28 and a yield of 2.1%. The ex-dividend date is set for March 13, 2024.
Insider Trading Activity
In other developments, insider trading activity has been notable. On November 17, 2023, Johanna Mercier, a company insider, sold 28,000 shares at an average price of $125.86, totaling $3,524,080. After this transaction, she retained 107,193 shares valued at approximately $13.49 million, reflecting a 20.71% decrease in her holdings.
Additionally, CEO Daniel Patrick O’Day sold 115,640 shares on January 23, 2024, at an average price of $135.00, amounting to $15,611,400. Following this sale, O’Day holds 566,698 shares, valued at around $76.50 million, marking a 16.95% decrease in his position. Over the past three months, insiders have sold a total of 319,391 shares, valued at approximately $44.14 million, while insiders currently own 0.27% of the company’s stock.
As analysts evaluate Gilead Sciences, the company is perceived as a solid investment opportunity, with many brokerage firms issuing strong recommendations. The firm, founded in 1987 and headquartered in Foster City, California, continues to focus on developing innovative therapies for high unmet medical needs, particularly in the areas of antiviral treatments and oncology.