In this comprehensive guide, I’ll explain how to buy GlaxoSmithKline shares in the UK. Buying GlaxoSmithKline shares and stocks is quick and easy, and I will show you the six steps you need to get started. I will also provide you with the necessary information you’ll require to buy GlaxoSmithKline shares.
Also consider: Best stocks to buy today
This is just a suggestive GlaxoSmithKline shares guide and doesn’t amount to or constitute investment advice. Keep in mind that buying, investing and trading GlaxoSmithKline shares comes with a lot of risk to your capital and nothing is assured.
- Choose a trading platform. If you’re unsure which one to choose, see my guide to the best trading platforms UK.
- Open an account. You will need your national insurance number, personal ID and bank details.
- Enter payment details. Fund your new trading account via a debit card or bank transfer.
- Search for the stock code on your trading platform. Search for “GSK”.
- Research GlaxoSmithKline shares information. Your trading platform can show you the latest information for GlaxoSmithKline.
- Now buy your GlaxoSmithKline shares. Go ahead if you’re happy to buy GlaxoSmithKline shares.
GlaxoSmithKline (GSK) Live share price
76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
If you want to buy GlaxoSmithKline shares in the United Kingdom, you need a device that will enable you to access an online broker platform of your choice, a driving license or passport and a trusted means of payment. Below you’ll find more details about the six steps to buying GlaxoSmithKline UK shares.
Step 1: Pick a Trading Platform
Since GlaxoSmithKline Plc is one of the leading drug manufacturers in the UK, it makes sense that there’re hundreds of trading platforms that provide you with the opportunity to purchase its shares. The huge number of platforms allows you to enjoy excellent customer care services, low fees, and support for your favourite payment method.
So you need to find an online broker with these features. On top of that, the online broker should allow you to access the London Stock exchange and other top markets. It should also hold a license from the Financial Conduct Authority and offer a safe and secure trading environment.
If you want to save significant research hours, you can look for independent advice from UK experts or navigate to my list of top trading platforms and choose your favourite one. All platforms available on the list allow you to buy GlaxoSmithKline shares within a shorter period.
Step 2: Create a Trading Account
After picking a trading platform that will enable you to access the London Stock Exchange and other markets worldwide, you need to create an account before you can buy GlaxoSmithKline shares. Once you land on the main website of your trading platform, choose to open an account.
When you press the Open/Sign Up/Join Now button, a registration form will appear, requesting you to provide basic personal and contact details. The fields on the form will require you to enter your full name, nationality, home address, date of birth, contact details, national insurance number, username and password.
Step 3: Confirm Bank Details and Deposit Money into Your Trading Account
With a Financial-Conduct Authority-licensed broker, you’ll have to confirm your bank details and verify your identity. On some trading platforms, you don’t need to verify your identity just after creating your account. However, you must go through this process before you’re allowed to withdraw your funds. So it is advisable to complete the verification process after creating an account.
During the verification process, you’ll need to upload a copy of your latest utility bill or bank statement and a passport or driver’s license. When it comes to making a minimum deposit, you can fund your account via a UK debit card or credit card, UK bank transfer or an electronic wallet such as Skrill, Neteller or PayPal.
Step 4: Search for GlaxoSmithKline Plc Stock Code on Your Trading Platform
After depositing your capital, the next step is to search for GlaxoSmithKline on your trading platform. To do that, enter the stock code of GlaxoSmithKline, which in this case is GSK. Click on the first result of your research to find out more details, including GSK’s share price, market capitalisation, and dividend payments information, to mention just a few.
Step 5: Research GlaxoSmithKline Shares
Before you can buy GlaxoSmithKline shares, be sure to find more information about the company. GlaxoSmithKline Plc carries a stock market cap in excess of £70 billion. But does this mean that its stocks are necessary right for your volatility preferences or long-term investing goals?
This is why you must spend some time finding more information about the company before making any decision. You need to know GSK fundamentals, including what GlaxoSmithKline Plc does, how its stock has fared in recent weeks, months and years, and, more importantly, where its share prices might be headed in the near future.
Step 6: Buy GlaxoSmithKline Shares
Once you have decided to buy GlaxoSmithKline shares, you can do so within your selected trading website. Each trading website is unique, but the overall process of buying GlaxoSmithKline shares will be the same and includes the following steps:
- Search for GlaxoSmithKline shares
- Click buy and read information about GSK share price, missions and other fees, as well as any other vital details provided
- Confirm your order
GSK Plc: A Short History
GSK Plc is one of the leading drug manufacturers in the United Kingdom. The multinational biotechnology and pharmaceutical company has its registered office along 980 Great West Road, Brentford, Middlesex, United Kingdom.
GSK was founded in 2000 by a merger of SmithKline Beecham and Glaxo Wellcome. The company is the 10th largest pharmaceutical firm and number 294 on the 2022 Fortune Global 500. It was ranked behind many other pharmaceutical companies, including Johnson & Johnson, China Resources, Merck, Bayer, Novartis, Roche, Pfizer, and Sinopharm, to name a few.
The GSK Company is an FTSE 100 Index and has a primary listing on the London Stock Exchange. As of August 2022, the company had a market cap of £70 billion, making it the 8th largest on the stock market. GSK has a secondary listing on the NYSE.
The company manufactured the first malaria vaccine, known as RTS S, that it said would be available for 5% above cost. Pharmaceutical products developed by the company include several listed in the essential medicines list of the World Health Organisation, like zidovudine, pyrimethamine, and amoxicillin mercaptopurine.
Over the years, the company has acquired several companies in the same sector. These companies include Block Drug in 2001, CNS Inc in 2006, Stiefel Laboratories in 2009, and Laboratories Phoenix in 2010. In 2011, Prestige Brands Holdings acquired over 17 of the company’s brands, including Fiber Choice, BC Powder, Beano, Sominex, Goody’s Powder and Tagamet.
In terms of recent developments, the company announced that it would acquire Affinivax and Sierra Oncology. On 26th May 2022, GlaxoSmithKline changed its name to GSK.
After signing up with your preferred brokerage platform, you need to consider some factors before you can buy GlaxoSmithKline shares in the UK. These factors include the following:
Before you can invest your capital in GlaxoSmithKline, you need to look at its financial basics and, at the same time, follow its dividend yield and payment information as well as its stock price. You also need to research how much profit the company earns annually to know if it can be a good investment to make.
Also, you need to keep a close eye on its vaccine and product pipeline. The pipeline of new vaccines and products determines a pharmaceutical firm’s future prospects and stock price movements to a large angle.
It is vital to know the company’s main competitors since you can compare things like net profits across the same period, dividend yield, share prices, key segments and much more. The information you obtain will enable you to make informed decisions when it comes to investing in GlaxoSmithKline stocks.
GlaxoSmithKline’s key areas are consumer healthcare, vaccines and pharmaceuticals. In line with these key areas, GSK competes with various companies across multiple healthcare subsectors. You need to monitor developments in all of these areas as you compare them with those of other companies in the same sector.
In addition to the companies mentioned earlier in the short history where I mentioned GSK was ranked behind them, other main competitors include Eli Lilly, AstraZeneca, and Takeda Pharmaceutical.
These companies are listed on different stock exchanges, including NYSE and LSE. The information you obtain after comparing these companies will enable you to decide whether GSK shares are worth your capital or not.
Decide on What You Want to Buy
Different orders are available for you to choose from before investing your capital. So you need to know which one blends smoothly with your investment strategy. The different types of orders available on brokerage platforms registered in England include:
This is an order that your brokerage platform will execute at the latest share price in the stock market. The share price you get on execution mightn’t be the same as the one at the time of placing the order.
This order type enables you to instantly buy or sell your GSK shares when a specified share price is reached. But if the market is moving rapidly against you, your brokerage company will not execute the order if the share price falls or rises past your limit.
A limit order isn’t similar to a market order as it is executed at the share price you have specified or less. If the share price falls, your order will be processed and fulfilled at the next market price.
Where and How to Buy Pharma Stocks
You can buy shares from any recommended broker registered in England after doing your own due diligence. It is also advisable to seek personal advice from experts if you aren’t able to find a perfect platform that allows you to invest in stocks. Pick a broker that meets all of your needs and requirements.
So now you know where to buy shares in GSK, you need to understand how you can start trading. GSK shares trade in different ways, which include:
CFDs allow you to speculate on stock markets without having to own underlying assets. Trading CFDs are an integral part of diversified portfolios of different investors. They provide investors with the opportunity to trade share price movements while at the same time speculating whether they’ll fall or increase.
Investors use spread bets to speculate on different markets, including commodities, indices and shares. Just like trading CFDs, this technique enables you to speculate on different markets without owning underlying assets. Spread bets allow you to pay half the stock cost to test the waters before entirely investing your capital.
How to Find the Right Broker
If you want to enjoy your stock investment journey, you should find the right broker in the UK. With the right broker, you can increase your earnings and reduce your chances of losing your hard-earned money. The features you should keep in mind when you’re looking for a broker are:
No Broker Commissions and Other Fees
You can buy shares in the UK without commissions and many other fees on a wide range of platforms. When you buy shares without commissions, stamp duty and additional fees, you can be able to save some significant amounts of money in the long run. So try as much as possible to find a commission-free broker with only one or two types of fees.
Company Research and Analysis
Experienced investors look for platforms that offer strong analysis and research sections. The main reason is that these sections allow them to make informed decisions based on various reports such as quarterly earnings, market updates and share price history.
A few platforms provide investors with personal advice and analyst recommendations. Whether you’re a newbie or an experienced investor, you need to find a platform that offers an excellent research and analysis section.
Buying stocks should not be a complicated task. You should pick a user-friendly brokerage platform and one that does not need special training or a lot of time to learn.
If you’re new to the world of investment, it is recommended to pick a platform that offers fractional shares. These types of shares allow you to buy a fraction of the share, which is a vital consideration. Fractional shares provide you with the opportunity to diversify your income effortlessly.
Are GSK Stocks Over- or Under-Valued?
The process of valuing stocks is challenging, especially if you’re new to stocks and shares. However, there’re some metrics that can help you know if certain stocks are over- or under-valued. These metrics are:
To find the P/E ratio of this company, you need to take the latest share price and then divide it by the per-share earnings over a period of one year. If you do that for GSK, you’ll find a P/E ratio of about 12x.
In simple words, the stocks of this firm trade at 12x its recent income. Compared to those of other companies, the GSK ratio is low, which means investors are pessimistic about the outlook of the stocks, or in simple terms, the shares are undervalued.
PEG ratio is another important metric that can help you know if GSK stocks are over- or under-valued. To find a PEG ratio of GSK, you need to take its P/E ratio and then divide it by its growth.
When you calculate it currently, you will find a figure of around 1.34. A price/earnings-to-growth ratio of more than 1.0 means that the stocks are overvalued. It also indicates an acceleration in growth.
GlaxoSmithKline Stock: Buy or Sell?
It is challenging to get exceedingly excited about GlaxoSmithKline. If you check other companies, you’ll notice that the stocks of this drug maker aren’t on the right track in terms of sell prices. Many investors consider GlaxoSmithKline stock as an investment defence that they turn to in periods of economic uncertainty.
Surprisingly, GlaxoSmithKline isn’t in the process of creating any Covid-19 vaccine. The company has state-of-the-art technologies that could help it work on a Covid-19 vaccine. Its vaccine is still in the early testing stages.
On the other hand, you should note that GlaxoSmithKline stock is still providing a straggling dividend yield that is just above 5%. This is attractive when you take into consideration the total number of FTSE 100 firms that have suspended or cut their dividends this year.
Traders will, in most cases, include several massive-cap pharmaceutical shares in their diversified portfolios since they have long-standing histories of providing consistent dividends. When it comes to GlaxoSmithKline, the drug maker has not missed any dividend payment since 2006, when declarations started.
In the ex-dividend date and most recent distributions, this has stood at around 20p a share. Similar to other firms in the FTSE 100 category, GlaxoSmithKline distributes dividends quarterly.
Shares of this company are currently down at approximately 13%. While this could represent a bargain-basement stockholding opportunity, it also indicates that the downward trajectory is more likely to continue in the near future.
Due to this, you need to take into consideration some important factors surrounding the drug producer before you can invest your cash. The factors you should look at include the Q2 2020 earnings report, the firm’s P/E ratio and EPS, dividend policies and the Covid-19 vaccine race.
Long-term shareholders of GlaxoSmithKline were not rewarded since the merger in 2000 when the firm was created. Back then, investors paid around 1,800p a share. And what about today? The shares of the firm trade at around 1,425 p a share. This shows that the shares are less than they were a few decades ago.
In terms of 52-week highs, the firm shares hit highs of 1,857p this year. The shares were later dragged down in the next weeks as part of the broader market sell-off. Overall, the shares of other biotechnology and pharmaceutical firms in the UK are growing rapidly, while those for GlaxoSmithKline are heading in the opposite direction.
How Can I Buy GSK Stock?
Why is the GSK Share Price Dropping?
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.