【7 Different Insiders Have Sold Shares】

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Gilead Sciences: 7 Different Insiders Have Sold Shares This Month

Jun. 26, 2014 8:59 AM ET  |  1 comment |  About: Gilead Sciences, Inc. (GILD), Includes: GSK, PFE, RHHBY

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)

Summary

• 7 insiders sold Gilead stock within one month.
• The stock was not purchased by any insiders in the month of intensive selling.
• 2 of these 7 insiders decreased their holdings by more than 10%.

Gilead Sciences (GILD) discovers, develops, and commercializes human therapeutics for the treatment of life threatening diseases in North America, Europe, and Asia.

(click to enlarge)

Insider selling during the last 30 days

Here is a table of Gilead's insider activity during the last 30 days.

Name	Title	Trade Date	Shares Sold	Option Exercise & Sale	Rule 10b5-1	Current Ownership	Decrease In Ownership
John Cogan	Director	June 23	5,000	Yes	Yes	42,405 shares +334,223options	1.3%
Norbert Bischofberger	CSO	June 16	90,000	Yes	Yes	2,284,383 shares + 1,178,621 options	2.5%
Paul Carter	EVP	June 9	16,728	Yes	Yes	30,705 shares + 57,720 options	15.9%
Robin Washington	CFO	June 4	6,426	No	Yes	57,174 shares + 22,373 options	7.5%
Gregg Alton	EVP	June 2	33,000	Yes & No	Yes	128,694 shares + 34,367 options	16.8%
Richard Whitley	Director	June 2	5,000	Yes	Yes	15,641 shares + 128,723 options	3.3%
John Martin	CEO	June 2	140,625	Yes	Yes	4,429,387 shares + 7,033,671 options	1.2%

There have been 296,779 shares sold by insiders during the last 30 days. All these shares were sold pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of Gilead's insider activity by calendar month.

Month	Insider selling / shares	Insider buying / shares
June 2014	296,779	0
May 2014	335,953	0
April 2014	270,353	0
March 2014	294,353	0
February 2014	454,989	0
January 2014	599,225	0
December 2013	477,242	0
November 2013	1,676,793	0
October 2013	477,242	0
September 2013	537,842	0
August 2013	570,962	0
July 2013	713,842	0
June 2013	422,242	0
May 2013	312,242	0
April 2013	326,210	0
March 2013	416,346	0
February 2013	312,242	10,000
January 2013	267,671	0

There have been 8,762,528 shares sold and there have been 10,000 shares purchased by insiders since January 2013.

Financials

Gilead reported the first-quarter financial results on April 22 with the following highlights:

Revenue	$5.0 billion
Net income	$2.2 billion
Cash	$6.4 billion
Debt	$9.8 billion

The seven insiders sold their shares after these results.

(click to enlarge)

(Source: Earnings presentation)

Outlook

Gilead's guidance for the full-year 2014 is as follows:

Net product sales	$11,300 - $11,500 million
Non-GAAP product gross margin	75%-77%

(click to enlarge)

(Source: Earnings presentation)

Upcoming milestones

Gilead has the following anticipated milestones in 2014.

HIV

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(Source: Earnings presentation)

Liver Disease

(click to enlarge)

(Source: Earnings presentation)

Oncology/Inflammation & Cardiovascular

(click to enlarge)(Source: Earnings presentation)

Competition

Gilead's competitors include GlaxoSmithKline (GSK), Pfizer (PFE), andRoche (OTCQX:RHHBY). Here is a table comparing these companies.

Company	GILD	GSK	PFE	RHHBY
Market Cap:	125.62B	128.58B	190.09B	249.75B
Employees:	6,100	99,451	77,700	85,080
Qtrly Rev Growth (yoy):	0.98	-0.13	-0.09	0.01
Revenue:	13.67B	43.69B	50.53B	54.37B
Gross Margin:	0.78	0.70	0.82	0.75
EBITDA:	7.05B	14.00B	22.38B	20.91B
Operating Margin:	0.48	0.27	0.33	0.34
Net Income:	4.58B	8.76B	10.99B	12.49B
EPS:	2.70	3.52	3.22	1.80
P/E:	30.30	15.18	9.25	20.46
PEG (5 yr expected):	0.46	1.85	4.34	2.95
P/S:	9.08	2.96	3.70	4.60

Gilead has the highest P/S ratio among these four companies.

Conclusion

There have been seven different insiders selling Gilead and there have not been any insiders buying Gilead during the last 30 days. Two of these seven insiders decreased their holdings by more than 10%. Gilead has an insider ownership of 0.84%.

Before going short Gilead, I would like to get a bearish confirmation from thePoint & Figure chart. The two main reasons for the proposed short entry are a relatively high P/S ratio, and the intensive insider-selling activity.

Editor's Note: This article discusses one or more securities that do not trade on a major exchange. Please be aware of the risks associated with these stocks.

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