Novo Nordisk A/S (NYSE:NVO) Stock Rated "Hold" by Sell-Side Brokerages

Key Points

• Analysts have a consensus “Hold” rating on Novo Nordisk, with 14 of 18 brokerages issuing hold recommendations. The average 12-month price target is $64.94.
• Novo reported quarterly earnings of $0.94 per share on $11.98 billion in revenue, with a 35.36% net margin and 58.61% return on equity.
• Investors remain concerned about upcoming semaglutide patent expirations, pricing pressure and competition from Eli Lilly, although Novo is targeting more than $23 billion in pipeline sales by 2035 and advancing candidates such as CagriSema.

Shares of Novo Nordisk A/S (NYSE:NVO - Get Free Report) have been assigned a consensus recommendation of "Hold" from the eighteen brokerages that are covering the stock, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation, fourteen have given a hold recommendation and three have issued a buy recommendation on the company. The average twelve-month price objective among analysts that have issued a report on the stock in the last year is $64.94.

Several equities research analysts have weighed in on NVO shares. Zacks Research raised Novo Nordisk A/S from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 11th. Weiss Ratings raised Novo Nordisk A/S from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, August 5th. HSBC reiterated a "hold" rating on shares of Novo Nordisk A/S in a report on Thursday, September 10th. BMO Capital Markets restated a "market perform" rating and set a $47.00 price target on shares of Novo Nordisk A/S in a report on Thursday, August 6th. Finally, Citigroup restated a "neutral" rating on shares of Novo Nordisk A/S in a research report on Monday, July 20th.

Novo Nordisk A/S Price Performance

NVO stock opened at $38.60 on Friday. Novo Nordisk A/S has a 52 week low of $35.12 and a 52 week high of $64.16. The firm has a market capitalization of $172.37 billion, a P/E ratio of 9.44, a price-to-earnings-growth ratio of 1.30 and a beta of 0.74. The company has a fifty day simple moving average of $45.95 and a two-hundred day simple moving average of $43.87. The company has a quick ratio of 0.66, a current ratio of 0.87 and a debt-to-equity ratio of 0.55.

Novo Nordisk A/S (NYSE:NVO - Get Free Report) last posted its earnings results on Tuesday, June 30th. The company reported $0.94 earnings per share for the quarter. The firm had revenue of $11.98 billion for the quarter. Novo Nordisk A/S had a net margin of 35.36% and a return on equity of 58.61%. Analysts anticipate that Novo Nordisk A/S will post 3.52 earnings per share for the current fiscal year.

Novo Nordisk A/S Cuts Dividend

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

Hedge Funds Weigh In On Novo Nordisk A/S

Several hedge funds have recently added to or reduced their stakes in NVO. Mirae Asset Global Investments Co. Ltd. grew its stake in Novo Nordisk A/S by 2,414.4% during the 2nd quarter. Mirae Asset Global Investments Co. Ltd. now owns 297,881 shares of the company's stock worth $14,280,000 after buying an additional 286,034 shares during the last quarter. Trust Co. of Vermont purchased a new stake in shares of Novo Nordisk A/S during the second quarter worth about $1,250,000. Burkett Asset Management Ltd acquired a new position in shares of Novo Nordisk A/S during the fourth quarter valued at about $1,823,000. Myriad Asset Management Advisors LLC purchased a new position in shares of Novo Nordisk A/S in the 2nd quarter valued at approximately $1,846,000. Finally, Pine Valley Investments Ltd Liability Co purchased a new position in shares of Novo Nordisk A/S in the 2nd quarter valued at approximately $2,324,000. 11.54% of the stock is currently owned by institutional investors.

Key Novo Nordisk A/S News

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

• Positive Sentiment: Novo set a goal of generating more than DKK 150 billion—roughly $23 billion—in pipeline sales by 2035 and aims to launch more than five potential multiblockbuster medicines by 2030. Management expects bolt-on acquisitions and new products to reduce reliance on Wegovy and Ozempic after patent protection begins to expire. Novo Nordisk Sets Pipeline Sales Target Above $23 Billion By 2035
• Positive Sentiment: Encouraging clinical and regulatory news includes positive CagriSema trial results, strong quarter-over-quarter growth for the Wegovy pill, and Singapore approval for Wegovy in certain liver-related uses. Rare-disease candidates Frehemgo and Sogroya also received positive European regulatory opinions. Novo's CagriSema Delivers Superior Weight Loss Versus Tirzepatide
• Neutral Sentiment: CEO Mike Doustdar said Novo is open to eventually replacing its American depositary receipts with a direct New York listing. Such a move could improve U.S. investor access and visibility, but management said it is not currently pursuing a listing change. Novo Nordisk Open to New York Listing Upgrade
• Negative Sentiment: Investors viewed the capital-markets update as lacking near-term detail and reacted negatively to management’s warning about Wegovy and Ozempic growth. Analysts remain concerned that Eli Lilly is gaining ground in the GLP-1 market and that the new pipeline targets will take years to translate into revenue. Novo's New Strategy Hinges on Investor Trust
• Negative Sentiment: Upcoming semaglutide patent cliffs, pricing pressure, and uncertainty over the durability of Novo’s competitive position have outweighed the stock’s inexpensive valuation. Commentary that a cheap earnings multiple cannot compensate for weak growth has reinforced the selloff. Novo Nordisk CEO Delivered a Warning

About Novo Nordisk A/S

Novo Nordisk A/S is a Danish healthcare company headquartered in Bagsværd, Denmark. Founded in 1923, the company develops and manufactures pharmaceutical products focused primarily on diabetes and obesity care, as well as treatments for rare blood disorders and growth disorders.

Its diabetes portfolio includes insulin products and medicines in the glucagon-like peptide-1 (GLP-1) class, including Ozempic, Rybelsus and Wegovy. The company also offers treatments for obesity, hemophilia and other rare conditions, along with growth hormone therapies.

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