Closed with Stop-Loss at price $70.60 – loss is about 7,37%
About company
Gilead Sciences, Inc. (Nasdaq: GILD) develops and sells treatments for life-threatening infections. The company focuses on medicine for HIV, hepatitis B, and C. Acquisitions of Corus Pharma, Myogen, CV Therapeutics, Arresto Biosciences, and Calistoga have added products for cardiovascular diseases and cancer treatment. Recently, the GILD announced additional data for Remdesivir.
Remdesivir is an antivirus medicine for the treatment of COVID-19. Data was collected using a comparative analysis of phase 3 SIMPLE and a real retrospective cohort of patients with severe COVID-19.
Remdesiriv shows to improve clinical recovery and reduce the risk of mortality by 62% compared to standard treatment.
Fundamental indicators
- PE is at the industry average of 19.6.
- Current assets exceed current liabilities.
- Interest payments on liabilities exceed EBIT by more than 5 times.
- Current dividend yield is at 3.54%.
- 66% of Profit is spent on dividend payments.
Technical analysis
The daily chart is moderately positive. Correction after the last upward movement is more than 50%. Security can continue its growth and reach the upper border of the ascending channel. The price is above the daily pivot. We will consider a change in the scenario for the stock when it consolidates below $72.
Risks
- The debt burden exceeds equity.
- Short-term assets do not cover long-term liabilities.
- The Price to Book Ratio is 4.4, which is higher than the industry’s 3.7.
- Weak forecast for revenue growth.
Summary
We think that Gilead Sciences is stable and until the end of the year can add 12% to their value; additionally, a sharp growth is possible in case of new successes in the treatment of COVID-19.