Value Stock in Focus: Gilead Sciences, Inc. (NASDAQ:GILD)

Other equities analysts have also recently issued research reports about the company. Analysts at Zacks have given a short term rating of hold on Gilead Sciences (NASDAQ:GILD) with a rank of 3. Analysts at Maxim Group reiterated a buy rating on Monday, July 6th. The analyst rates the stock a Buy with a price target of $115, which represents a slight upside potential from current levels. Cowen and Company reissued an “outperform” rating and issued a $125.00 price objective on shares of Gilead Sciences in a research note on Tuesday, July 21st. One analyst has rated the stock with a sell rating, a hold rating has been given by four, nineteen have given a buy rating and two have imputed a strong buy rating to the stock of the company’s. The stock has a consensus rating of “Buy” and a consensus price target of $124.13. The stock’s 50-day moving average is $117.16 and its 200-day moving average is $107.08. The Biotechnology company is now valued at $162.45 billion and its share price closed the last trading session at $110.54.

Gilead Sciences, Inc. (NASDAQ:GILD) has been identified as a value stock according to Zacks Research.

Gilead Sciences, Inc. (NASDAQ:GILD) is scheduled to report its second-quarter earnings after the bell on Tuesday and investors, first and foremost, will be looking for HepC revenues and guidance for potential sales in the rest of 2015 in context of competitive dynamics after AbbVie Inc (NYSE:ABBV)’s launch of Viekira-Pak in December. The company had revenue of $7.59 billion for the quarter, compared to the consensus estimate of $6.81 billion. During the same quarter last year, the company posted $1.48 earnings per share.

The company recently declared a quarterly dividend, that has been paid on Monday. This represents a $1.72 annualized dividend and a dividend yield of 1.52%. The ex-dividend date of the dividend was Friday, June 12th. The stock was sold at an average price of $114.44, for a total value of $11,444,000.00. The transaction was disclosed in a record filed with the Securities & Trade Commission, which can be obtained through this link. Also, Director John Francis Cogan sold 27,000 shares of the stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $120.13, for a total trade of $3,243,510.00. The disclosure for this sale can be found here.

Based on the PEG ratio of GILD being 0.61, we consider Gilead Sciences, Inc.to likely be underpriced. He has led the expansion of the company’s research activities across a range of therapeutic areas, including HIV, liver diseases, hematology/oncology, inflammation and respiratory diseases and cardiovascular conditions. Its Liver Ailments products include Sovaldi, Harvoni, Viread and Hepsera. The increased revenue is likely to be driven primarily by the company’s blockbuster HCV drugs, HIV drugs, and other anti-viral products. Its Cardio Vascular items feature Ranexa Letairis and Lexiscan/Rapiscan.

The contract urged other PBMs to opt for similar strategies, posing a severe threat to Gilead which could lose a major chunk of its patient population if it maintained its high price tag for the drugs.