GSK (NYSE:GSK) Shares Gap Down – Time to Sell?

Shares of GSK plc (NYSE:GSK) gapped down prior to trading on Tuesday . The stock had previously closed at $41.66, but opened at $40.68. GSK shares last traded at $40.36, with a volume of 1,532,690 shares changing hands.

Analysts Set New Price Targets

Several research firms recently issued reports on GSK. BNP Paribas began coverage on shares of GSK in a report on Tuesday, April 15th. They issued a “neutral” rating and a $35.25 target price on the stock. Morgan Stanley assumed coverage on shares of GSK in a report on Wednesday, February 12th. They set an “equal weight” rating on the stock. Hsbc Global Res upgraded shares of GSK to a “strong sell” rating in a report on Monday, April 28th. Berenberg Bank reiterated a “hold” rating on shares of GSK in a report on Tuesday. Finally, Wall Street Zen lowered shares of GSK from a “buy” rating to a “hold” rating in a report on Friday, May 30th. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating and two have assigned a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $37.38.

GSK Stock Up 0.9%

The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.52 and a current ratio of 0.78. The company has a market cap of $84.24 billion, a price-to-earnings ratio of 25.68, a price-to-earnings-growth ratio of 1.12 and a beta of 0.51. The stock’s fifty day moving average is $37.48 and its two-hundred day moving average is $36.28.

GSK (NYSE:GSK) last posted its earnings results on Wednesday, April 30th. The pharmaceutical company reported $1.13 earnings per share for the quarter, topping analysts’ consensus estimates of $1.08 by $0.05. GSK had a net margin of 8.13% and a return on equity of 48.59%. The company had revenue of $10.06 billion for the quarter, compared to analyst estimates of $7.52 billion. During the same quarter in the prior year, the business posted $0.43 EPS. The firm’s revenue was up 2.1% compared to the same quarter last year. Sell-side analysts predict that GSK plc will post 4.14 earnings per share for the current fiscal year.

GSK Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 10th. Investors of record on Friday, May 16th will be issued a $0.4216 dividend. This represents a $1.69 dividend on an annualized basis and a dividend yield of 4.13%. The ex-dividend date is Friday, May 16th. This is a positive change from GSK’s previous quarterly dividend of $0.39. GSK’s dividend payout ratio is currently 86.60%.

Institutional Investors Weigh In On GSK

Institutional investors have recently added to or reduced their stakes in the company. Indiana Trust & Investment Management Co grew its position in GSK by 200.0% in the 4th quarter. Indiana Trust & Investment Management Co now owns 750 shares of the pharmaceutical company’s stock worth $25,000 after purchasing an additional 500 shares in the last quarter. HHM Wealth Advisors LLC grew its position in GSK by 222.2% in the 1st quarter. HHM Wealth Advisors LLC now owns 667 shares of the pharmaceutical company’s stock worth $26,000 after purchasing an additional 460 shares in the last quarter. Costello Asset Management INC bought a new stake in GSK in the 1st quarter worth about $31,000. Sierra Ocean LLC bought a new stake in GSK in the 4th quarter worth about $32,000. Finally, Richardson Financial Services Inc. grew its position in GSK by 127.9% in the 1st quarter. Richardson Financial Services Inc. now owns 841 shares of the pharmaceutical company’s stock worth $33,000 after purchasing an additional 472 shares in the last quarter. 15.74% of the stock is owned by institutional investors.

GSK Company Profile

GSK plc, together with its subsidiaries, engages in the research, development, and manufacture of vaccines, and specialty and general medicines to prevent and treat disease in the United Kingdom, the United States, and internationally. It operates through two segments, Commercial Operations and Total R&D.