GSK (NYSE:GSK) Shares Gap Down – Should You Sell?

GSK plc (NYSE:GSK) gapped down before the market opened on Wednesday . The stock had previously closed at $40.39, but opened at $39.55. GSK shares last traded at $39.67, with a volume of 456,924 shares trading hands.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. StockNews.com raised shares of GSK from a “buy” rating to a “strong-buy” rating in a report on Friday, February 7th. Morgan Stanley started coverage on GSK in a report on Wednesday, February 12th. They set an “equal weight” rating on the stock. Seven investment analysts have rated the stock with a hold rating and four have given a strong buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $43.25.

GSK Price Performance

The company has a market capitalization of $81.68 billion, a P/E ratio of 24.84, a price-to-earnings-growth ratio of 1.12 and a beta of 0.58. The company has a debt-to-equity ratio of 1.12, a current ratio of 0.78 and a quick ratio of 0.52. The firm’s 50-day moving average is $36.30 and its 200-day moving average is $36.96.

GSK (NYSE:GSK) last issued its quarterly earnings data on Wednesday, February 5th. The pharmaceutical company reported $0.59 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.44 by $0.15. GSK had a net margin of 8.13% and a return on equity of 48.59%. Analysts predict that GSK plc will post 4.14 EPS for the current fiscal year.

GSK Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 10th. Stockholders of record on Friday, February 21st will be paid a $0.3932 dividend. The ex-dividend date is Friday, February 21st. This represents a $1.57 annualized dividend and a dividend yield of 3.98%. This is an increase from GSK’s previous quarterly dividend of $0.39. GSK’s dividend payout ratio (DPR) is 98.74%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in GSK. Wealth Enhancement Advisory Services LLC raised its stake in GSK by 8.1% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 174,688 shares of the pharmaceutical company’s stock worth $5,908,000 after acquiring an additional 13,039 shares during the period. Northstar Financial Companies Inc. purchased a new stake in GSK in the 4th quarter worth $228,000. Aegis Wealth Management LLC purchased a new stake in GSK in the 4th quarter worth $286,000. Probity Advisors Inc. raised its holdings in GSK by 58.8% during the fourth quarter. Probity Advisors Inc. now owns 15,120 shares of the pharmaceutical company’s stock valued at $511,000 after acquiring an additional 5,599 shares during the period. Finally, BridgePort Financial Solutions LLC bought a new position in shares of GSK in the fourth quarter worth about $310,000. 15.74% of the stock is currently owned by institutional investors.

GSK Company Profile

GSK plc, together with its subsidiaries, engages in the research, development, and manufacture of vaccines, and specialty and general medicines to prevent and treat disease in the United Kingdom, the United States, and internationally. It operates through two segments, Commercial Operations and Total R&D.