Gilead Sciences, Inc. (NASDAQ: GILD)
Gilead Sciences was off to what looked like it was going to be an incredibly rough day in the market today. When the opening bell rang, the stock was trading well into the green. However, shortly after the market open, the stock started to take a turn for the worse, quickly diving into the red. But then, minutes ago, we started to notice a spike in value that brought the stock close to the green again. Below, we’ll talk about what we’re seeing, why, and what we’ll be watching for with regard to GILD ahead.
What We’re Seeing From GILD
As mentioned above, Gilead Sciences didn’t look like it was going to have the best of days in the market today. When the opening bell rang, the stock was trading well into the green. However, it quickly made a mad dash for the red, breaking into losses minutes after the bell. But then, minutes ago, we started to see a reversal in value. At the time I started writing this article (9:52), GILD was trading at $75.99 per share after a loss of $0.02 per share (0.03%) on the day. At the moment (9:56), the stock is trading at $75.86 per share after a loss of $0.15 per share, or 0.20%.
Why We’re Seeing The Movement
As is normally the case, our partners at Trade Ideas were the first to notify us of the movement on GILD. As soon as they did, the CNA Finance team started digging to see what was causing it. In our search, we were unable to find any releases from the company. However, we were able to find something interesting in social.
At the moment, there’s a rumor circling social media surrounding Gilead Sciences. That rumor is that an activist investor is considering taking out a stake in the company. That activist is Carl Icahn. While in many cases, activists move the needle, in this case, we’re talking about a massive company. So, he may not move the needle right away. However, if Icahn gets involved, it will likely be a great thing for GILD in the long run.
What We’ll Be Watching Ahead
Moving forward, the CNA Finance team will be keeping a close eye on GILD. In particular, we’re interested in learning whether or not Icahn will be purchasing a stake in the company, how large that stake might be, and what the plans are moving forward. We’ll keep an eye on the news and bring it to you as it breaks!
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[Image Courtesy of Flickr]