NovoCure (NASDAQ:NVCR) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded NovoCure from “Buy” to “Hold.” The broader analyst consensus is also “Hold,” with two Buy ratings, four Holds, one Sell, and an average price target of $21.20.
• NovoCure reported better-than-expected quarterly results, posting an EPS loss of $0.13 versus the $0.33 expected loss and revenue of $183.58 million, up 15.6% year over year.
• The stock opened at $17.82, while insiders sold 51,943 shares worth about $893,171 over the past three months; institutional investors own 84.61% of the company.

NovoCure (NASDAQ:NVCR - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

NVCR has been the subject of several other research reports. Evercore restated an "outperform" rating on shares of NovoCure in a research report on Friday, May 1st. Weiss Ratings upgraded shares of NovoCure from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Monday, June 1st. HC Wainwright set a $32.00 target price on shares of NovoCure in a research note on Friday, July 24th. JPMorgan Chase & Co. started coverage on shares of NovoCure in a research report on Monday, July 13th. They issued a "neutral" rating and a $17.00 target price for the company. Finally, Zacks Research upgraded shares of NovoCure from a "strong sell" rating to a "hold" rating in a research note on Friday, July 24th. Two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $21.20.

NovoCure Trading Down 0.9%

NASDAQ:NVCR opened at $17.82 on Friday. NovoCure has a 12-month low of $9.82 and a 12-month high of $21.45. The firm has a market capitalization of $2.08 billion, a P/E ratio of -13.71 and a beta of 0.97. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.89 and a quick ratio of 2.70. The business has a 50 day simple moving average of $16.52 and a 200 day simple moving average of $14.79.

NovoCure (NASDAQ:NVCR - Get Free Report) last issued its quarterly earnings data on Thursday, July 23rd. The medical equipment provider reported ($0.13) EPS for the quarter, topping analysts' consensus estimates of ($0.33) by $0.20. The firm had revenue of $183.58 million during the quarter, compared to the consensus estimate of $172.44 million. NovoCure had a negative return on equity of 44.00% and a negative net margin of 21.25%.The firm's revenue was up 15.6% on a year-over-year basis. During the same period in the prior year, the business earned ($0.36) EPS. Equities research analysts predict that NovoCure will post -1.21 EPS for the current year.

Insider Activity at NovoCure

In related news, Director W Anthony Vernon sold 2,945 shares of the stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $15.77, for a total value of $46,442.65. Following the completion of the transaction, the director owned 197,657 shares in the company, valued at $3,117,050.89. This represents a 1.47% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Allyson J. Ocean sold 2,945 shares of the stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $15.77, for a total transaction of $46,442.65. Following the completion of the transaction, the director owned 11,324 shares of the company's stock, valued at $178,579.48. This represents a 20.64% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 51,943 shares of company stock valued at $893,171. 6.55% of the stock is owned by corporate insiders.

Institutional Trading of NovoCure

Institutional investors have recently made changes to their positions in the stock. California State Teachers Retirement System boosted its holdings in shares of NovoCure by 1,144.4% in the second quarter. California State Teachers Retirement System now owns 1,774,004 shares of the medical equipment provider's stock valued at $26,876,000 after acquiring an additional 1,631,443 shares in the last quarter. Coppell Advisory Solutions LLC bought a new stake in NovoCure during the second quarter worth approximately $590,000. Proficio Capital Partners LLC acquired a new stake in NovoCure in the second quarter worth approximately $162,000. First Bancorp Inc ME acquired a new stake in shares of NovoCure in the second quarter valued at $38,000. Finally, Handelsbanken Fonder AB lifted its holdings in shares of NovoCure by 37.2% in the second quarter. Handelsbanken Fonder AB now owns 51,223 shares of the medical equipment provider's stock valued at $776,000 after buying an additional 13,900 shares during the period. 84.61% of the stock is owned by institutional investors and hedge funds.

About NovoCure

NovoCure is a global oncology company pioneering Tumor Treating Fields (TTFields), a novel anti-mitotic therapy for solid tumors. The company's non-invasive treatment platforms deliver low-intensity, alternating electric fields designed to disrupt cancer cell division. NovoCure's approach offers an alternative modality to complement existing therapies in oncology, with a focus on hard-to-treat malignancies.

Founded in 2000 and headquartered in Haifa, Israel, NovoCure maintains a second operational center in Portsmouth, New Hampshire.

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