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Gilead Sciences, Inc.’s stocks declined 20% year to date, and had faced difficulties to maintain shares above $80. In fact, their earnings report for the second quarter didn’t actually helped, while Hepatitis C revenue per patient were also seen declining.

Given this area as the main source of the company’s revenue, the market therefore considered it as a big disappointment in the stock.

Despite with the biopharmaceutical company’s near term headwinds, it still remained as the dominant player in hepatitis C. In addition, their HIV product sales had double digits amid the last quarter, beating analysts’ expectations.  

Apparently, the recent share price action of the corporation was seen dropping, fueled by a tight competition in the market as Merck performed head-to-head for hepatitis C, along with an unproven pipeline, which is anticipated to drag share prices deeper in the next quarters.

Gilead Sciences, Inc.’s Stocks Slips

Shares of the company declined by about -0.39% and  settled at $79.77 at the close. For the current quarter, 22 analysts of which affirmed a consensus estimate of $2.88 earnings per share (EPS), lower than the $3.22 per share estimate in the same quarter prior year.  

Meanwhile, the percentage movement in the price last year remained steady at -24.74%, while the highest hit of the price settled at $113.31, and the lowest level was $77.92. Stock price ended the session at -3.37%, lower than its 50-day moving average and a -11.48% below its 200-day moving average.     

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Further, the biopharmaceutical announced last week that Kelly A. Kramer was been appointed as the corporation’s Board of Directors and Audit Committee.

Ms. Kramer is currently working as an Executive Vice President and Chief Financial Officer of Cisco Systems Inc., with an expertise of product designs, services and solutions. She had served for 20 years as General Electric’s (GE) senior finance, and as a Chief Financial Officer of GE Healthcare’s Healthcare Systems Business.  

She is also a member of the board of the Silicon Valley Chapter of City Year, which is a non-profit organization established to offer educational support intended for at-risk students in poor communities.

Stock Prices Reading

As shown in the chart below, GILD opened at 83.82 on July 26, which declined in three consecutive sessions at resistance 84.55 and support 83.24. Meanwhile, stock price tried to break out in two lines, reaching a lowest level of 80.99 and declined deeper in the next two sessions.

Subsequently, the candle tried to break out another support at 80.28 on July 29 and consolidated until 79.32 on August 16 after the stagnation was put to an end, with the stock price breaking out to the upside settling at 80.70 in late trade.

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Conclusion

Given a recent downward trend on GILD, we concluded that stock prices will decline deeper in the next session as earnings result of the corporation missed analysts’ forecast. In addition, the stock is compelling for a Buy.

However, it could also consolidate as the company remained as the dominant player for Hepatitis C.

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