Novo Nordisk A/S (NYSE:NVO) Stock Now Rated "Hold" by Wall Street Analysts

Key Points

• Analysts rate Novo Nordisk “Hold” overall: Of 26 analysts, 16 recommend holding, while five rate the stock a sell and five recommend buying it. The average 12-month price target is $59.44.
• Competitive pressure remains a key concern: Rising competition from Eli Lilly, along with questions about Wegovy demand, pricing and oral-treatment momentum, is weighing on investor sentiment.
• Share buybacks provide some support: Novo Nordisk has repurchased more than DKK 10.5 billion of a planned DKK 15 billion program, although insider inactivity may limit the confidence signal. Shares recently traded near $38.38, close to their 12-month low.

Novo Nordisk A/S (NYSE:NVO - Get Free Report) has been assigned an average rating of "Hold" from the twenty-six analysts that are currently covering the firm, Marketbeat.com reports. Five research analysts have rated the stock with a sell recommendation, sixteen have assigned a hold recommendation and five have issued a buy recommendation on the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $59.44.

NVO has been the subject of several research analyst reports. Cfra downgraded Novo Nordisk A/S from a "hold" rating to a "sell" rating and set a $38.00 target price for the company. in a research note on Tuesday, September 22nd. BMO Capital Markets set a $40.00 target price on Novo Nordisk A/S and gave the company a "market perform" rating in a research report on Monday, October 12th. Berenberg Bank reissued a "neutral" rating on shares of Novo Nordisk A/S in a research note on Monday, September 21st. Barclays reissued a "neutral" rating on shares of Novo Nordisk A/S in a report on Monday, September 7th. Finally, JPMorgan Chase & Co. reissued a "neutral" rating on shares of Novo Nordisk A/S in a report on Monday, September 21st.

Hedge Funds Weigh In On Novo Nordisk A/S

Hedge funds have recently made changes to their positions in the company. Smithbridge Asset Management Inc. DE grew its position in shares of Novo Nordisk A/S by 3.9% during the third quarter. Smithbridge Asset Management Inc. DE now owns 106,090 shares of the company's stock worth $4,022,000 after buying an additional 4,021 shares in the last quarter. Columbia Asset Management purchased a new stake in shares of Novo Nordisk A/S during the third quarter worth approximately $386,000. IFP Advisors Inc increased its stake in shares of Novo Nordisk A/S by 41.5% during the third quarter. IFP Advisors Inc now owns 42,822 shares of the company's stock worth $1,623,000 after buying an additional 12,569 shares during the period. Frank Rimerman Advisors LLC raised its holdings in Novo Nordisk A/S by 38.0% in the third quarter. Frank Rimerman Advisors LLC now owns 32,088 shares of the company's stock valued at $1,216,000 after acquiring an additional 8,830 shares in the last quarter. Finally, RKL Wealth Management LLC raised its holdings in Novo Nordisk A/S by 0.9% in the third quarter. RKL Wealth Management LLC now owns 51,456 shares of the company's stock valued at $1,951,000 after acquiring an additional 444 shares in the last quarter. Institutional investors and hedge funds own 11.54% of the company's stock.

More Novo Nordisk A/S News

Here are the key news stories impacting Novo Nordisk A/S this week:

• Positive Sentiment: Share buyback provides support: Novo Nordisk reported further progress on its repurchase program, with purchases exceeding DKK 10.5 billion toward a planned DKK 15 billion program over 12 months. Buybacks can support earnings per share and signal that management views the depressed valuation as attractive. Novo Nordisk A/S share repurchase programme
• Positive Sentiment: Valuation and income appeal: Recent analysis highlights NVO’s relatively low earnings multiple and dividend potential, which could attract value-oriented investors after the stock’s substantial decline. However, this is an analytical view rather than a new company catalyst. Novo Nordisk stock analysis
• Neutral Sentiment: Investors are awaiting the November 4 update: Market attention is focused on Novo Nordisk’s next business update, which may provide guidance on Wegovy demand, competitive conditions, pricing and the impact of the buyback. Novo Nordisk November 4 update
• Negative Sentiment: Insider inactivity weakens the buyback signal: Reports that insiders have remained on the sidelines while the company repurchases shares may make investors more cautious about interpreting the program as a strong near-term confidence signal. Novo Nordisk insiders and buyback
• Negative Sentiment: Rising Eli Lilly competition is the main pressure: An EMA panel backed Lilly’s Foundayo for obesity and type 2 diabetes, increasing competitive risk for Novo Nordisk’s oral Wegovy strategy in Europe. Investors are also concerned about U.S. pricing pressure and slower Wegovy-pill momentum. Novo Nordisk and Lilly GLP-1 competition

Novo Nordisk A/S Price Performance

Shares of Novo Nordisk A/S stock opened at $38.38 on Tuesday. The firm has a market cap of $171.38 billion, a PE ratio of 9.38, a P/E/G ratio of 1.32 and a beta of 0.76. Novo Nordisk A/S has a twelve month low of $35.12 and a twelve month high of $64.16. The company has a quick ratio of 0.66, a current ratio of 0.87 and a debt-to-equity ratio of 0.55. The business has a 50-day moving average price of $42.51 and a 200 day moving average price of $43.97.

Novo Nordisk A/S (NYSE:NVO - Get Free Report) last issued its quarterly earnings results on Tuesday, June 30th. The company reported $0.94 earnings per share (EPS) for the quarter. Novo Nordisk A/S had a return on equity of 58.61% and a net margin of 35.36%. The company had revenue of $11.98 billion for the quarter. Sell-side analysts predict that Novo Nordisk A/S will post 3.42 earnings per share for the current fiscal year.

Novo Nordisk A/S Cuts Dividend

The business also recently declared a dividend, which was paid on Tuesday, August 25th. Investors of record on Monday, August 17th were paid a $0.5786 dividend. The ex-dividend date of this dividend was Monday, August 17th. This represents a yield of 258.0%. This is a drop from Novo Nordisk A/S's previous dividend of $1.2751. Novo Nordisk A/S's dividend payout ratio is 20.05%.

Novo Nordisk A/S Company Profile

Novo Nordisk A/S is a Danish pharmaceutical company headquartered in Bagsværd, Denmark. The company focuses on developing and manufacturing medicines and delivery systems for chronic diseases, with a primary emphasis on diabetes and obesity care.

Novo Nordisk offers a broad portfolio of insulin products, as well as glucagon-like peptide-1 (GLP-1) medicines used in diabetes management and weight treatment. Its well-known products include Ozempic and Rybelsus for type 2 diabetes, Wegovy for chronic weight management, and several modern and human insulin products.

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