How to Buy Gilead Sciences Shares UK – with 0% Commission

Gilead Sciences is a huge pharmaceutical company listed on the NASDAQ exchange. If you’re based in the UK and want to buy Gilead Sciences shares online, the process is simple.

All you need is a good broker that gives you access to American stocks at competitive prices.

In this guide, we show you how to buy Gilead Sciences shares online in the UK in the cheapest, fastest, and safest way.

Step 1: Find a UK Stock Broker to Buy Gilead Sciences Shares

As you likely know, if you want to buy shares online you will first need to find a suitable broker.

In the case of Gilead Sciences, the broker in question must give you access to the NASDAQ exchange – which is based in the US. Not only this, but the platform must offer competitive trading fees and posses a strong regulatory standing.

To help point you in the right direction, below we list a small selection of top-rated stock brokers that allow you to buy Gilead Sciences shares with ease.

1. Fineco Bank – Affordable Share Dealing Platform

Fineco Bank is another great stock broker that allows you to buy Gilead Sciences shares with ease. This platform charges a share dealing commission of just $3.95 (about £2.95). You will pay this when you buy Gilead Sciences shares and again when you sell them.

There is also an annual maintenance fee of 0.25%, which is chargeable against the value of your portfolio.

Fineco Bank requires a minimum deposit of just £100 to get started. You will need to facilitate this through a UK bank transfer, meaning no debit/credit cards or e-wallets. As is to be expected, Fineco is regulated by the FCA, and your funds are protected by the FSCS.

Pros

Cons

Your money is at risk.

Step 2: Research Gilead Sciences Shares

There is a lot of interest in pharmaceutical stocks at present – largely because of the race to find a suitable vaccine for COVID-19.

This means that the risks are somewhat higher at present, as there is a lot of speculation in the market as to which pharmaceutical firms will join the likes of Pfizer and Moderna for regulatory approval.

With this in mind, we would suggest reading through the following research sections so that you have a firm understanding of what a Gilead Sciences investment entails.

What is Gilead Sciences plc?

Launched in 1987, Gilead Sciences is a US-based pharmaceutical company. It specializes primarily in biotechnologies and strives to produce cutting-edge drugs and treatments for a range of viral conditions.

This includes the likes of influenza, hepatitis B and C, and HIV. Additionally, Gilead Sciences is also working on a suitable vaccine for COVID-19.

Gilead Sciences Share Price History & Market Capitalisation

Gilead Sciences is listed on the NASDAQ exchange with a market capitalization of over $71 billion as of late 2020. Due to the size of valuation, the firm is a leading constituent of the S&P 500 index. In terms of its stock price history, we need to go all of the way back to 1992 – which is when Gilead Sciences first went public.

Back then, the shares first traded at $20 each. This price is adjusted to take into account the five stock splits that Gilead Sciences has since initiated. The most recent was in 2013 where the firm enacted a 2-for-1 split.

Nevertheless, the shares performed well for many years, reaching all-time highs in 2015 at $117.Since then, it’s been up and down for Gilead Sciences, especially in recent times. For example, the stocks entered 2020 at a price of $65. The same shares were worth $85 in April of the same year – representing a four-month increase of 30%.

This was largely in anticipation of the firm’s progress towards a COVID-19 vaccine. However, the shares have since cooled off, closing the year at $56 each. This means that year-to-date, the shares are actually down 13%.

Gilead Sciences EPS and P/E Ratio

In terms of key accounting ratios, Gilead Sciences has an earnings-per-share (EPS) of $4.22. This figure is based on the firm’s 2019 financial results. This represents a very slight increase of 1.2% from the prior year.

When it comes to the price-to-earnings (P/E) ratio, this stands at 59.05 moving into 2021. This is slightly on the high side, meaning Gilead Sciences shares could be overvalued.

Gilead Sciences Shares Dividend Information

Gilead Sciences is a solid dividend stock. It most recent dividend announcement came in December 2020 for the firm’s Q4 payment. This stood at $0.68 per share of common stock. It is notable that there has been no disruption to Gilead Science’s dividend policy this year.

Should I Buy Gilead Sciences Shares?

So now that we have discussed the financials, we need to take a closer look at what the future holds for Gilead Sciences shares.

The key points that you need to consider are elaborated on below:

Veklury

One of the most exciting developments brought forward by Gilead Sciences in recent times is that of its Veklury drug. This is an approved drug authorized in more than 50 countries aimed at treating COVID-19. In just seven months, the drug has so far generated revenues of over $1.7 billion.

However, it must be noted that the drug is not on the same level as those developed by Pfizer and Moderna, insofar that it only improves the recovery time for those with very severe cases of COVID. With this in mind, the drug is arguably somewhat redundant in comparison to the aforementioned vaccines.

Over-Reliance on HIV Drugs

As per the firm’s 2019 financial results, its HIV treatment division contributed over 70% of global sales. This is somewhat problematic, as it illustrates that Gilead Sciences is over-exposed to a single market. On the flip side, the company is currently engaged in over 42 clinical trials.

This covers a variety of treatments that if brought to the mass market, could have a sizable impact on Gilead Sciences’ bottom line. Until then, investors should be concerned that so much of the firm’s revenue stream is provided by one treatment.

Balance Sheet

Pharmaceutical companies live or die on the strength or weakness of their balance. In the case of Gilead Sciences, the firm is in good financial health.

In fact, this includes more than $24 billion of cash-on-hand, meaning additional acquisition attempts are likely to be in the making. In its prior financial year, Gilead Sciences generated more than $9 billion in free cash flows, which again, shows that the firm is in good financial shape.

Stocks at Pre-COVID Levels

When we talk about pre-COVID levels, we typically refer to stocks that have recovered pandemic-related losses. However, in the case of the Gilead Sciences, the opposite has happened.

That is to say, the stocks enjoyed a 30% upside in the first four months of 2020. This was due largely to its Veklury approval. With that said, the hype surrounding Veklury has since wained, not least because it is far inferior to the coronavirus vaccines developed by its industry competitors.

On the flip slide, this does mean that you can now buy Gilead Sciences shares at fair value.

Gilead Sciences Shares Buy or Sell?

Market sentiment on Gilead Sciences was overly strong towards the start of 2020 – not least because of the excitement surrounding its COVID-19 related Veklury treatment.

However, with other, more effective treatments having since been approved in the US and Europe, the need for Veklury is on the decline.

In turn, Gilead Sciences shares are now worth less than they were at the start of the year. This is actually good news for potential investors, as you can buy Gilead Sciences at a more favorable price. Additionally, the firm is a strong and stable dividend payer, which makes the pharma stock even more attractive.

The Verdict?

As a large-scale US stock listed on the NASDAQ, it makes sense that the process of buying Gilead Sciences shares in the UK is relatively simple. You do, however, need to keep an eye out on what fees your chosen broker charges – not least because you are buying non-UK stocks.

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