GSK stock: buy or sell?

GSK stock price: $40.38 0.47% At close on August 19th, 2019

Updated on:
August 19th, 2019

5

GlaxoSmithKline appreciated a slightly fine 0.47% and closed at $40.38. Counting Monday, it's been 3 green days in a row, soaring $0.70 or 1.72%.

GlaxoSmithKline plc engages in the creation, discovery, development, manufacture, and marketing of vaccines, over-the-counter medicines, and health-related consumer products worldwide.

Should I buy GSK stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, GlaxoSmithKline stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is GlaxoSmithKline stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 8 ratings published for GSK stock in the last month.

The general sentiment of these ratings is bearish for GSK stock, with 1 negative ratings.
Is GSK a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-13JPMorgan Chase & Co.n/aNeutral
2019-6-17Morgan Stanleyn/aUnderweight
2019-6-10Cowenn/aHold
2019-3-8Shore CapitalBuyHold
2019-3-8Shore CapitalBuyHold
2019-2-22UBS GroupBuyNeutral
2019-1-14Exane BNP ParibasOutperformNeutral
2019-1-14BNP ParibasBuyHold

GSK stock analysis

Daily outlook

GlaxoSmithKline appreciated a slightly fine 0.47% and closed at $40.38.

GlaxoSmithKline shares appreciated 0.47% to $40.38 today. On June GSK price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. For the last 25 days when SMA50d and SMA100d crossed up, GSK price slipped $-0.58 per share (-1.42%).

GSK stock chart (daily)

Weekly outlook

GlaxoSmithKline shares gained 0.47% this week, ending at $40.38.

Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $41.98 resistance. Early June GSK price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Since SMA20d and SMA40w crossed up by mid March, GSK price climbed $0.70 per share (1.76%).

GSK stock chart (weekly)

GSK stock price history

GSK stock went public on March 28th, 1980 with a price of $0.141. Since then, GSK stock grew a 28,742.90%, with an average of 737.00% per year. If you had invested $1,000 in GSK stock in 1980, it would worth $287,429.00 today.

1: Adjusted price after possible price splits or reverse-splits.

GSK stock historical price chart

GSK stock reached 52-week highs on Jul/29 at $41.98, and all-time highs 2014-03-05 with a price of 42.46.

GSK stock price target is $45.00

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. Currently, only 1 price forecast for GlaxoSmithKline stock was published in the last 30 days:
GSK stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-6-10CowenReiteratesn/a$45.00-
(in average)$0.00$45.000.0%

Financials and fundamental analysis

Earnings date and Earnings per Share

GlaxoSmithKline presented very good results for 2018-Q4 on February. GlaxoSmithKline soared Earnings per Share (EPS) by 12.90%, beating experts estimates of $0.70. GlaxoSmithKline posted $0.79.
GSK earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.26n/a
2017-Q3-n/a0.31n/a
2017-Q4-n/a0.47n/a
2018-Q12018-04-250.70.68-2.9%
2018-Q22018-07-250.710.778.5%
2018-Q32018-10-310.860.83-3.5%
2018-Q42019-02-060.70.7912.9%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw a slightly fine growth of 2.10% to $30,821.00 million dollars. Aligned with this, its profit margin (compared to revenues) rose to 11.75%, that is $3,623.00 million.

GSK annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$26,510 M-$5,440 M20.5%-
2014$35,840 M35.19%$4,293 M12.0%-21.08%
2015$23,923 M-33.25%$8,422 M35.2%96.16%
2016$27,889 M16.58%$912 M3.3%-89.17%
2017$30,186 M8.24%$1,532 M5.1%67.98%
2018$30,821 M2.10%$3,623 M11.8%136.49%

Quarterly financial results

GlaxoSmithKline posted $8,197.00 million in sales for 2018-Q4, a 1.30% up compared to previous quarter. Reported quarter income marked $1,215.00 million with a profit margin of 14.82%. Profit margin depreciated a -2.70% compared to previous quarter when profit margin was 17.52%. When comparing sales to same quarter last year, GlaxoSmithKline sales marked a bloodcurdling correction and plunged a -20.59%. Looking back to recent quarterly results, GlaxoSmithKline posted 3 positive quarters in a row.
GSK quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$7,320 M-$-180 M-2.5%-
2017-Q3$10,507 M43.54%$1,624 M15.5%-1,002.02%
2017-Q4$10,323 M-1.75%$-738 M-7.1%-145.44%
2018-Q1$7,222 M-30.04%$549 M7.6%-174.41%
2018-Q2$7,310 M1.22%$441 M6.0%-19.67%
2018-Q3$8,092 M10.70%$1,418 M17.5%221.54%
2018-Q4$8,197 M1.30%$1,215 M14.8%-14.32%
2019-Q1$7,661 M-6.54%$830 M10.8%-31.69%

GlaxoSmithKline ownership

When you are planning to buy shares of a company, it's worth to have a look its ownership structure.

GlaxoSmithKline shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.01% of all shares.

In case of GlaxoSmithKline stock, 11.00% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for GSK stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to GlaxoSmithKline:

GSKAZNDVAXINVAMRK
Market cap$100.5 B$116.2 B$259.6 M$1.2 B$221.5 B
Total shares2,490.0 M2,620.0 M65.1 M101.3 M2,570.0 M
Float shares2,440.0 M2,620.0 M64.4 M54.3 M2,560.0 M
  - Institutional holdings (%)11.0%19.4%85.1%81.3%78.3%
  - Insider holdings (%)0.0%0.0%1.2%32.5%0.1%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

GSK summary

Monday, August 19th, 2019
Open$40.32
Close$40.38
Day range$40.22 - $40.47
Previous close$40.19
Session gain0.47%
Average true range$0.58
50d mov avg$40.31
100d mov avg$39.85
200d mov avg$39.05
Daily pattern
Weekly pattern lb02a

GlaxoSmithKline performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare GlaxoSmithKline to Astrazeneca, Dynavax Technologies, Innoviva, Merck, Novartis, Pfizer, and Teva Pharmaceutical Industries:
Stock3m6m12m
GSKGlaxoSmithKline1.66%1.94%2.85%
AZNAstrazeneca18.59%12.00%20.23%
DVAXDynavax Technolog...-36.67%-64.15%-68.33%
INVAInnoviva-21.37%-22.54%-17.94%
MRKMerck6.87%8.13%28.25%
NVSNovartis2.24%13.57%23.10%
PFEPfizer-15.67%-16.79%-14.78%
SNY0.29%2.86%4.11%
TEVATeva Pharmaceutic...-44.88%-64.35%-73.53%

GlaxoSmithKline competitors

We chose a few stocks to conform a list of GlaxoSmithKline competitors to review if you are interested in investing in GSK:

Latest GSK stock news