Investors showed significant interest in GSK PLC (NYSE:GSK) on Thursday, acquiring an impressive 122,136 call options. This figure marks a staggering increase of approximately 1,570% compared to the average volume of just 7,312 call options. Such a surge in trading activity suggests heightened expectations for the pharmaceutical company’s future performance.
Analyst Ratings and Price Targets
Research firms have been actively assessing GSK’s stock. On October 30, 2023, Cfra set a target price of $53.00 for GSK. Meanwhile, Jefferies Financial Group reiterated a “buy” rating on October 27, 2023. In another notable change, Weiss Ratings upgraded GSK from a “hold (C+)” to a “buy (B-)” rating on October 31, reflecting increasing confidence in the company’s outlook. Additionally, Wall Street Zen elevated GSK from a “buy” to a “strong-buy” rating on September 5, 2023.
Currently, according to MarketBeat, GSK has received mixed ratings from analysts, with two assigning a buy rating, four rating it as hold, and one issuing a sell rating. The overall consensus remains a “hold” with a target price of $44.13.
Recent Earnings Report
GSK recently disclosed its quarterly earnings on October 29, 2023. The company reported $1.48 earnings per share (EPS), outperforming analyst expectations of $1.26 by $0.22. Revenue for the quarter reached $11.35 billion, significantly exceeding estimates of $8.21 billion. This performance reflects a 6.7% increase in revenue compared to the same quarter last year, when GSK earned $0.50 per share.
For the fiscal year 2025, GSK has provided guidance of 4.730-4.810 EPS, while analysts predict an average EPS of 4.14 for the current year.
Dividend Announcement and Institutional Trading Activity
In a recent move, GSK declared a quarterly dividend of $0.4171 per share, set to be paid on January 8, 2024. Shareholders of record as of November 14, 2023, will receive this dividend, which translates to an annualized dividend of $1.67 and a yield of 3.5%. The company’s payout ratio currently stands at 46.05%.
Institutional investors are actively trading GSK shares. Brighton Jones LLC recently acquired a new stake valued at approximately $528,000 during the fourth quarter. Stephens Inc. AR increased its stake by 9.9% in the first quarter, now owning 40,570 shares valued at $1.57 million. Other institutions, such as Sigma Planning Corp and Cullen Frost Bankers Inc., also raised their holdings, with Cullen Frost Bankers increasing its position by 12.1%.
Overall, around 15.74% of GSK’s stock is currently held by hedge funds and institutional investors, reflecting strong institutional interest in the company.
Company Overview
GSK plc, along with its subsidiaries, is involved in the research, development, and manufacture of vaccines and medicines aimed at preventing and treating diseases globally, particularly in the United Kingdom and the United States. The company operates through two primary segments: Commercial Operations and Total R&D, focusing on delivering innovative solutions to improve health outcomes.
As GSK navigates the complexities of the pharmaceutical landscape, its recent trading activity and financial performance will be closely monitored by analysts and investors alike.
