GSK stock: buy or sell?

GSK stock price: $40.98 0.71% At close on August 22nd, 2019

Updated on:
August 22nd, 2019

5

GlaxoSmithKline shares stepped up 0.71% to $40.98 today.

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?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. At Stocks2.com, we 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 published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 9 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
2019-8-22Shore Capitaln/aHold
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

Shares of GlaxoSmithKline stepped up a tiny 0.71% and closed at $40.98.

GlaxoSmithKline shares stepped up 0.71% to $40.98 today. On June GSK price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. On July/25, SMA50d and SMA100d crossed up triggering a rise of 0.05%.

GSK stock chart (daily)

Weekly outlook

Shares of GlaxoSmithKline raised a beatiful 1.97% this week.

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. By mid March, SMA20w and SMA40w crossed up triggering a rise of 3.28%.

GSK stock chart (weekly)

GSK stock price history

GSK IPO was on March 28th, 1980 at $0.14 per share1. Since then, GSK stock grew a 29,171.40%, with a yearly average of 748.00%. If you had invested right after GSK's IPO a $1,000 in GSK stock in 1980, it would worth $291,714.00 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, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. Currently, only 1 price prediction for GlaxoSmithKline stock was posted in the last month:
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

On February, GlaxoSmithKline reported its latest financial data, posting a very good growth for the Earnings per Share (EPS) ratio. Experts were expecting $0.70 per share, but 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

In 2018, GlaxoSmithKline annual turnover stepped up a slightly fine 2.10% to $30,821.00 M USD from $30,186.00 marked in 2017. When comparing 2018 vs 2017, in line, profit margin (that is, the net income divided by revenues) rose a 6.68% to 11.75%.

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 M in revenues for 2018-Q4, a 1.30% improvement compared to previous quarter. Reported quarter income marked $1,215.00 M with a profit margin of 14.82%. Profit margin decreased a -2.70% compared to previous quarter when profit margin was 17.52%. When comparing revenues to same quarter last year, GlaxoSmithKline sales marked a frightening correction and plummed 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 a stock, it's worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For GlaxoSmithKline, 0.01% of all outstanding shares are owned by its staff.

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.

For a better understanding, the next table shows ownership data compared to other related stocks:

GSKAZNDVAXINVAMRK
Market cap$102.0 B$119.0 B$293.5 M$1.2 B$222.9 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

Thursday, August 22nd, 2019
Open$40.82
Close$40.98
Day range$40.80 - $41.09
Previous close$40.69
Session gain0.71%
Average true range$0.53
50d mov avg$40.37
100d mov avg$39.84
200d mov avg$39.10
Daily pattern
Weekly pattern lb02a

GlaxoSmithKline performance

To better understand GlaxoSmithKline performance you must becnhmark its gains with other related stocks in same sector or industry. In the following table, we compare GlaxoSmithKline performance to Astrazeneca, Dynavax Technologies, Innoviva, Merck, Novartis, Pfizer, and Teva Pharmaceutical Industries:
Stock3m6m12m
GSKGlaxoSmithKline3.17%3.46%4.38%
AZNAstrazeneca17.61%14.67%22.56%
DVAXDynavax Technolog...-21.97%-56.92%-65.83%
INVAInnoviva-20.26%-23.12%-18.06%
MRKMerck7.59%8.86%29.11%
NVSNovartis1.69%12.96%22.44%
PFEPfizer-16.10%-17.35%-14.87%
SNY2.18%9.28%3.28%
TEVATeva Pharmaceutic...-31.46%-56.81%-67.64%

GlaxoSmithKline competitors

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

Latest GSK stock news