GSK stock: buy or sell?
August 19th, 2019
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.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
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.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-8-13||JPMorgan Chase & Co.||n/a||Neutral|
|2019-1-14||Exane BNP Paribas||Outperform||Neutral|
GSK stock analysis
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%).
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 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 $45.00Predicting 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:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
Financials and fundamental analysis
Earnings date and Earnings per ShareGlaxoSmithKline 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared 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.
|2013||$26,510 M||-||$5,440 M20.5%||-|
|2014||$35,840 M||35.19%||$4,293 M12.0%||-21.08%|
|2015||$23,923 M||-33.25%||$8,422 M35.2%||96.16%|
|2016||$27,889 M||16.58%||$912 M3.3%||-89.17%|
|2017||$30,186 M||8.24%||$1,532 M5.1%||67.98%|
|2018||$30,821 M||2.10%||$3,623 M11.8%||136.49%|
Quarterly financial resultsGlaxoSmithKline 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.
|2017-Q2||$7,320 M||-||$-180 M-2.5%||-|
|2017-Q3||$10,507 M||43.54%||$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 M||1.22%||$441 M6.0%||-19.67%|
|2018-Q3||$8,092 M||10.70%||$1,418 M17.5%||221.54%|
|2018-Q4||$8,197 M||1.30%||$1,215 M14.8%||-14.32%|
|2019-Q1||$7,661 M||-6.54%||$830 M10.8%||-31.69%|
GlaxoSmithKline ownershipWhen 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:
|Market cap||$100.5 B||$116.2 B||$259.6 M||$1.2 B||$221.5 B|
|Total shares||2,490.0 M||2,620.0 M||65.1 M||101.3 M||2,570.0 M|
|Float shares||2,440.0 M||2,620.0 M||64.4 M||54.3 M||2,560.0 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 selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Monday, August 19th, 2019|
|Day range||$40.22 - $40.47|
|Average true range||$0.58|
|50d mov avg||$40.31|
|100d mov avg||$39.85|
|200d mov avg||$39.05|
GlaxoSmithKline performancePerformance 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:
GlaxoSmithKline competitorsWe chose a few stocks to conform a list of GlaxoSmithKline competitors to review if you are interested in investing in GSK:
- Astrazeneca (AZN)
- Dynavax Technologies (DVAX)
- Innoviva (INVA)
- Merck (MRK)
- Novartis (NVS)
- Pfizer (PFE)
- Teva Pharmaceutical Industries (TEVA)
Latest GSK stock news
- Seeking AlphaGlaxoSmithKline Looks To Boost Sales Of Zejula Upon Potential FDA Approval In Another IndicationJuly 31, 2019
- Seeking AlphaGlaxoSmithKline And Linerixibat In Cholestasis Pruritus: It Is Worth A LookJuly 3, 2019
- Seeking AlphaWe May Pick Up GlaxoSmithKline At Cheaper PricesJune 10, 2019
- Seeking AlphaGlaxoSmithKline & AstraZeneca, Two Brexit Cancellation Income PlaysApril 29, 2019
- Seeking AlphaGlaxoSmithKline And Merck KGaA Position For The Next Wave In Immuno-OncologyFebruary 11, 2019