GSK attracts negative rating news coverage as analysts turn bearish on stock

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Analysts’ bearish stance on GSK weighs on stock price heavily

Media coverage for GlaxoSmithKline Plc, one of the world’s largest drug makers was dominated by Stock Rating related news items in the past 90-days. FiND, an alternative data platform showed the underlying news sentiment for analyst rating coverage on GSK was mostly negative during this period (Image 1).

FiND offers high-end Media analytics by tracking mainstream news and social media in real-time and analyzing movement in underlying sentiment around it for all listed and unlisted companies across the globe.

Image 1: GSK – Top Topics and Ratings News Sentiment

For the last 90-days period, the Positive to Negative News Volume Ratio for stock rating slipped to 0.56 from 1.8 for the period prior to 90-days. The ratio value above 1 indicates mostly positive media coverage. On the other hand, the ratio value below 1 signals broadly negative media coverage.

We have highlighted some of the recent stock rating related news items on GSK with negative sentiment below (Image 2):

Negative News Updates
Image 2: News Screen highlighting Rating coverage for GSK

The continuous stream of negative news items highlighting analysts’ bearish stance on GSK impacted Sentiment Score (20-day moving average), which remained in negative territory since Nov. 21, 2017 (Image 3). Overall negative news sentiment weighed on GSK’s stock price heavily. In the past 90-days, the drug maker has lost 13% of its market value.

GSK Sentiment Price Chart
Image 3: GSK Share Price and Sentiment Score Chart

In our view, prolonged negative news sentiment does not augur well for the company. Corporate Communications / Investors Relations Teams can counter negative perceptions in the media at the appropriate time by picking up early signals of deteriorating news coverage.

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