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  • 7 insiders sold Gilead stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • 2 of these 7 insiders decreased their holdings by more than 10%.

Gilead Sciences (NASDAQ:GILD) discovers, develops, and commercializes human therapeutics for the treatment of life threatening diseases in North America, Europe, and Asia.

(click to enlarge)

Insider selling during the last 30 days

Here is a table of Gilead's insider activity during the last 30 days.

NameTitleTrade DateShares SoldOption Exercise & SaleRule 10b5-1Current OwnershipDecrease In Ownership
John CoganDirectorJune 235,000YesYes42,405
shares + 334,223 options
Norbert BischofbergerCSOJune 1690,000YesYes2,284,383
shares + 1,178,621
Paul CarterEVPJune 916,728YesYes30,705
shares + 57,720 options
Robin WashingtonCFOJune 46,426NoYes57,174
shares + 22,373 options
Gregg AltonEVPJune 233,000Yes & NoYes128,694
shares + 34,367
Richard WhitleyDirectorJune 25,000YesYes15,641
shares + 128,723 options
John MartinCEOJune 2140,625YesYes4,429,387
shares + 7,033,671

There have been 296,779 shares sold by insiders during the last 30 days. All these shares were sold pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of Gilead's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
June 2014296,7790
May 2014335,9530
April 2014270,3530
March 2014294,3530
February 2014454,9890
January 2014599,2250
December 2013477,2420
November 20131,676,7930
October 2013477,2420
September 2013537,8420
August 2013570,9620
July 2013713,8420
June 2013422,2420
May 2013312,2420
April 2013326,2100
March 2013416,3460
February 2013312,24210,000
January 2013267,6710

There have been 8,762,528 shares sold and there have been 10,000 shares purchased by insiders since January 2013.


Gilead reported the first-quarter financial results on April 22 with the following highlights:

Revenue$5.0 billion
Net income$2.2 billion
Cash$6.4 billion
Debt$9.8 billion

The seven insiders sold their shares after these results.

(click to enlarge)

(Source: Earnings presentation)


Gilead's guidance for the full-year 2014 is as follows:

Net product sales$11,300 - $11,500 million
Non-GAAP product gross margin75%-77%

(click to enlarge)

(Source: Earnings presentation)

Upcoming milestones

Gilead has the following anticipated milestones in 2014.


(click to enlarge)

(Source: Earnings presentation)

Liver Disease

(click to enlarge)

(Source: Earnings presentation)

Oncology/Inflammation & Cardiovascular

(click to enlarge)(Source: Earnings presentation)


Gilead's competitors include GlaxoSmithKline (NYSE:GSK), Pfizer (NYSE:PFE), and Roche (OTCQX:RHHBY). Here is a table comparing these companies.

Market Cap:125.62B128.58B190.09B249.75B
Qtrly Rev Growth (yoy):0.98-0.13-0.090.01
Gross Margin:0.780.700.820.75
Operating Margin:0.480.270.330.34
Net Income:4.58B8.76B10.99B12.49B
PEG (5 yr expected):0.461.854.342.95

Gilead has the highest P/S ratio among these four companies.


There have been seven different insiders selling Gilead and there have not been any insiders buying Gilead during the last 30 days. Two of these seven insiders decreased their holdings by more than 10%. Gilead has an insider ownership of 0.84%.

Before going short Gilead, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are a relatively high P/S ratio, and the intensive insider-selling activity.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

Source: Gilead Sciences: 7 Different Insiders Have Sold Shares This Month