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Thursday, August 27, 2020 12:49:22 PM
Is Gilead Sciences, Inc. (NASDAQ:GILD) a buy here? The smart money was in a pessimistic mood. The number of bullish hedge fund bets dropped by 8 in recent months. Gilead Sciences, Inc. (NASDAQ:GILD) was in 68 hedge funds' portfolios at the end of June. The all time high for this statistics is 93. Our calculations also showed that GILD isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings and see the video for a quick look at the top 5 stocks). Video: Watch our video about the top 5 most popular hedge fund stocks.
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 56 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 34% through August 17th. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Ric Dillon Diamond Hill Capital
Ric Dillon Diamond Hill Capital
Ric Dillon of Diamond Hill Capital
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, legal marijuana is one of the fastest growing industries right now, so we are checking out ideas like this under-the-radar stock to identify the next tenbagger. Currently, investors are pessimistic about commercial real estate investments. So, we are checking out this contrarian play to diversify our market exposure. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. Now let's review the fresh hedge fund action regarding Gilead Sciences, Inc. (NASDAQ:GILD).
How are hedge funds trading Gilead Sciences, Inc. (NASDAQ:GILD)?
At the end of June, a total of 68 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -11% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards GILD over the last 20 quarters. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Gilead Sciences, Inc. (NASDAQ:GILD) was held by Renaissance Technologies, which reported holding $684.9 million worth of stock at the end of September. It was followed by AQR Capital Management with a $352.7 million position. Other investors bullish on the company included Citadel Investment Group, Diamond Hill Capital, and Arrowstreet Capital. In terms of the portfolio weights assigned to each position Healthcare Value Capital allocated the biggest weight to Gilead Sciences, Inc. (NASDAQ:GILD), around 9.82% of its 13F portfolio. Unio Capital is also relatively very bullish on the stock, dishing out 4.13 percent of its 13F equity portfolio to GILD.
Judging by the fact that Gilead Sciences, Inc. (NASDAQ:GILD) has faced bearish sentiment from hedge fund managers, it's easy to see that there were a few money managers that elected to cut their entire stakes in the second quarter. At the top of the heap, Phill Gross and Robert Atchinson's Adage Capital Management dumped the largest stake of all the hedgies followed by Insider Monkey, comprising about $83.2 million in stock, and Fang Zheng's Keywise Capital Management was right behind this move, as the fund cut about $61.6 million worth. These moves are interesting, as aggregate hedge fund interest dropped by 8 funds in the second quarter.
Let's check out hedge fund activity in other stocks similar to Gilead Sciences, Inc. (NASDAQ:GILD). These stocks are Royal Bank of Canada (NYSE:RY), United Parcel Service, Inc. (NYSE:UPS), Anheuser-Busch InBev SA/NV (NYSE:BUD), HSBC Holdings plc (NYSE:HSBC), JD.Com Inc (NASDAQ:JD), Raytheon Technologies Corp (NYSE:RTX), and 3M Company (NYSE:MMM). This group of stocks' market caps are closest to GILD's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position RY,16,237643,0 UPS,37,781926,-11 BUD,17,860874,0 HSBC,10,384518,-4 JD,87,11211241,-3 RTX,59,2951712,-3 MMM,42,1038241,-2 Average,38.3,2495165,-3.3 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 38.3 hedge funds with bullish positions and the average amount invested in these stocks was $2495 million. That figure was $2286 million in GILD's case. JD.Com Inc (NASDAQ:JD) is the most popular stock in this table. On the other hand HSBC Holdings plc (NYSE:HSBC) is the least popular one with only 10 bullish hedge fund positions. Gilead Sciences, Inc. (NASDAQ:GILD) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for GILD is 56.6. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 28.2% in 2020 through August 24th but beat the market by 20.6 percentage points. Unfortunately GILD wasn't nearly as popular as these 10 stocks and hedge funds that were betting on GILD were disappointed as the stock returned -14.1% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 10 most popular stocks among hedge funds as many of these stocks already outperformed the market so far this year.
Recent GILD News
- Gilead Sciences to Present at Upcoming Investor Conferences • Business Wire • 04/30/2024 08:05:00 PM
- FDA Approves Biktarvy® Label Update With Data for Pregnant Adults With HIV • Business Wire • 04/26/2024 12:00:00 PM
- Exxon Mobil Net Profit Drops 28% to $8.22 Billion, Atlassian Surprises with Revenue Boost and Co-CEO Exit, and More in Earnings • IH Market News • 04/26/2024 11:47:51 AM
- Gilead Sciences Announces First Quarter 2024 Financial Results • Business Wire • 04/25/2024 08:02:00 PM
- U.S. Futures Drop in Pre-Market Trading as Tech Stocks Plunge After Meta Issues Gloomy Forecast • IH Market News • 04/25/2024 11:53:54 AM
- Gilead Sciences to Release First Quarter 2024 Financial Results on Thursday, April 25, 2024 • Business Wire • 04/08/2024 08:05:00 PM
- FDA Expands Indication for Gilead's Vemlidy (Tenofovir Alafenamide) to Treat Chronic HBV Infection in Pediatric Patients as Young as Six • Business Wire • 03/28/2024 12:30:00 PM
- Gilead and Xilio Announce Exclusive License Agreement for Tumor-Activated IL-12 Program • GlobeNewswire Inc. • 03/28/2024 11:00:00 AM
- Gilead and Xilio Announce Exclusive License Agreement for Tumor-Activated IL-12 Program • Business Wire • 03/28/2024 11:00:00 AM
- Gilead Sciences Announces Completion of Acquisition of CymaBay • Business Wire • 03/22/2024 01:18:00 PM
- Center for Disease Analysis Foundation Announces First Round of Grantees for the CDAF-Relink Grant • Business Wire • 03/18/2024 11:29:00 PM
- Form SC TO-T/A - Tender offer statement by Third Party: [Amend] • Edgar (US Regulatory) • 03/11/2024 12:34:07 PM
- Gilead Sciences Announces Expiration of Hart-Scott-Rodino Waiting Period for CymaBay Tender Offer • Business Wire • 03/11/2024 12:24:00 PM
- Biktarvy® Demonstrates High Rates of Viral Suppression in People With HIV and Comorbidities • Business Wire • 03/06/2024 09:30:00 PM
- Gilead and Merck Announce Phase 2 Data Showing an Investigational Oral Once-Weekly Combination Regimen of Islatravir and Lenacapavir Maintained Viral Suppression at Week 24 • Business Wire • 03/06/2024 03:25:00 PM
- Gilead and Merus Announce Collaboration to Discover Novel Antibody-Based Trispecific T-Cell Engagers • Business Wire • 03/06/2024 01:00:00 PM
- New Real-World Data Further Support the Use of Veklury® (Remdesivir) for People Hospitalized With COVID-19 • Business Wire • 03/05/2024 09:35:00 PM
- Gilead’s Innovative HIV Treatment Research Pipeline Aims to Address Unmet Needs and Advance Public Health • Business Wire • 03/05/2024 09:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/29/2024 11:35:55 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/29/2024 09:49:46 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/28/2024 09:38:50 PM
- Gilead Announces Funding Initiative to Support HIV Prevention, Anti-Stigma and Health Equity Efforts for Black Cisgender and Transgender Women and Girls in the U.S. • Business Wire • 02/27/2024 03:00:00 PM
- U.S. FDA Approves Expanded Indication for Gilead’s Biktarvy® to Treat People with HIV with Suppressed Viral Loads, Pre-existing Resistance • Business Wire • 02/26/2024 09:05:00 PM
- Gilead to Present Late-Breaking Data and Real-World Evidence Highlighting Innovative Antiviral Portfolio and Research Pipeline at CROI 2024 • Business Wire • 02/26/2024 01:30:00 PM
- Form SC TO-T - Tender offer statement by Third Party • Edgar (US Regulatory) • 02/23/2024 11:09:33 AM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM