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

Shares of 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 traded.

Wall Street Analysts Forecast Growth

Several research firms recently commented on GSK. StockNews.com upgraded shares of GSK from a “buy” rating to a “strong-buy” rating in a report on Friday, February 7th. Morgan Stanley initiated coverage on shares of GSK in a research note on Wednesday, February 12th. They issued an “equal weight” rating for the company. Seven equities research analysts have rated the stock with a hold rating and four have issued a strong buy rating to the stock. Based on data from MarketBeat, GSK presently has a consensus rating of “Moderate Buy” and an average price target of $43.25.

GSK Price Performance

The stock’s 50 day moving average price is $36.53 and its two-hundred day moving average price is $37.00. 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 has a market capitalization of $81.62 billion, a price-to-earnings ratio of 24.80, a PEG ratio of 1.12 and a beta of 0.58.

GSK (NYSE:GSK) last issued its quarterly earnings data on Wednesday, February 5th. The pharmaceutical company reported $0.59 earnings per share for the quarter, topping 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%. On average, equities research analysts anticipate that GSK plc will post 4.14 EPS for the current year.

GSK Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, April 10th. Investors of record on Friday, February 21st will be given a dividend of $0.3932 per share. The ex-dividend date is Friday, February 21st. This represents a $1.57 dividend on an annualized basis and a yield of 3.99%. This is a positive change from GSK’s previous quarterly dividend of $0.39. GSK’s payout ratio is 98.74%.

Hedge Funds Weigh In On GSK

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Wealth Enhancement Advisory Services LLC increased its position in GSK by 8.1% during the fourth 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. bought a new position in GSK during the fourth quarter worth $228,000. Aegis Wealth Management LLC bought a new position in GSK during the fourth quarter worth $286,000. Probity Advisors Inc. increased its position in GSK by 58.8% during the fourth quarter. Probity Advisors Inc. now owns 15,120 shares of the pharmaceutical company’s stock worth $511,000 after acquiring an additional 5,599 shares during the period. Finally, BridgePort Financial Solutions LLC bought a new stake in GSK in the 4th quarter valued at $310,000. Institutional investors own 15.74% of the company’s stock.

About GSK

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.