Insiders are buying up a decent amount of stock in Gilead Sciences (GILD - Get Report), a biopharmaceutical company developing and commercializing products targeting the extracellular matrix for the diabetes, cancer, dermatology and drug delivery markets. Insiders are loading up into strength here since this stock is u over 23% so far in 2012.
Gilead Sciences has a market cap of $33.7 billion and an enterprise value of $31.9 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 12.61 and a forward price-to-earnings of 10.27. Its estimated growth rate for this year is -1%, and for next year it's pegged at 14.1%. This is a cash-rich company, since the total cash position on its balance sheet is $9.96 billion and its total debt is $7.92 billion.A director just bought 10,000 shares, or about $439,000 worth of stock, at $44 per share. From a technical perspective, GILD is currently trading above its 200-day moving average and right below its 50-day moving average, which is neutral trendwise. This stock recently gapped down from over $54 to below $45 a share on monster volume. That huge gap down has done some technical damage on the chart that could take some time to fix. If you're bullish on GILD, I would look for long-biased trades once this stock moves back above its 50-day moving average of $44.90 on high-volume. Look for volume on a move and close back above that level that's near of well above its three-month average action of 10,773,400 shares. If we get that action soon, I would then add to any long positions once GILD trades above its gap down day high of $48 with volume. Look for some of that gap to get filled if $48 is taken out with volume. I would completely avoid any long biased traders in GILD if its recent low of $43.81 a share is taken out on high-volume. Gilead shows up on a list of Health Care Stocks Bought and Sold by Hedge Funds in the most recent quarter. Follow @stockpickr