Bank of America Corp DE’s recent filing with the Securities and Exchange Commission (SEC) reveals a significant reduction in their shares of pharmaceutical giant GSK Plc (NYSE:GSK). According to the filing, Bank of America Corp DE lessened its position in GSK by 7.8% during the fourth quarter, selling off 197,603 shares of the company’s stock. The fund now owns 2,347,081 shares of GSK, which accounts for just 0.11% of GSK’s overall worth at $82,476,000.
GSK Plc has been operating in the healthcare sector since its founding date over three centuries ago. The company specializes in research and development, manufacturing and distribution of pharmaceutical medicines and vaccines as well as consumer healthcare products across all regions. This recent move by Bank of America Corp DE seems to indicate a lack of faith in one or more segments that contribute to GSK’s business growth.
Despite this news from Bank of America Corp DE, NYSE:GSK recorded steady trading activity at an opening value of $34.11 on Monday. The stock’s current status reveals an encouraging five percent increase over its 50-day simple moving average while its two-hundred day simple moving average is only slightly lower.
Additionally, GSK currently holds a market cap value at $69.84 billion with a low-to-high range between $28.47 and $44.75 across twelve months attracting strong investor interest despite fluctuations within the market with over four decades — it’s beta noted as 0.67– hardly portraying disdainful behavior while its quick ratio sits at a respectable .69%. Similarly noteworthy are the debt-to-equity numbers where it achieved 1.47%.
Although Bank of America Corp DE’s divestment from GSK may turn some investors’ heads towards cautioning against investments in the healthcare sector—arguably regardless even if they have been holding GSK stocks, any threat to the stability and position of such a tremendous pioneer in pharmaceuticals will call for taking calculating measures to arrive at competent actions. In conclusion, the healthcare sector is relatively unpredictable but mitigation can be the solution to stable investment returns.
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Institutional investors increase holdings in GSK despite controversial products and mixed analyst reviews
Pharmaceutical company GlaxoSmithKline (GSK) has seen a flurry of activity from institutional investors and hedge funds making significant changes to their holdings, according to recent reports. Northwest Investment Counselors LLC increased its share in the company by 339% during Q4 2016, while Janiczek Wealth Management LLC raised its holdings by almost 50% in the same period. Glassman Wealth Services and Nelson Van Denburg & Campbell Wealth Management Group LLC respectively lifted their stakes in GSK by more than five and six times in Q4 2016 and Q1 2017. Concord Wealth Partners has also reportedly taken a new stake in GSK valued at $45,000. In total, institutional investors own 13.15% of the pharmaceutical firm’s stock.
The apparent enthusiasm for GSK comes despite the fact that three research analysts have rated the stock as a sell, with four suggesting it is a hold, four stating it is buy and one rating it as a strong buy, according to data from Bloomberg. Moreover, Deutsche Bank Aktiengesellschaft only recently reversed its recommendation on GSK from hold to buy following heavy scrutiny over sales of an asthma treatment drug accused of being potentially life-threatening.
It is worth noting though that despite these controversies surrounding the company’s product line, GSK’s announcement last month that it was increasing its quarterly dividend would have been welcome news for investors given that many major firms have reduced their regular payouts amid concerns about declining growth prospects or margins squeezed between competition.
It remains uncertain whether recent investor interest in the firm will continue given mixed reviews from industry analysts and the ongoing turbulence within this particular sector of healthcare. The consensus target price for GSK currently stands at $1,576.88 representing around a14 point increase from where shares are presently trading at.