NovoCure Limited (NASDAQ:NVCR) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Analysts rate NovoCure “Hold” on average: Of seven covering firms, four recommend holding, two recommend buying, and one recommends selling. The average 12-month price target is $21.20.
• NovoCure reported quarterly revenue of $183.58 million, up 15.6% year over year and above estimates, while its adjusted loss of $0.13 per share was better than the expected $0.33 loss.
• NVCR opened at $16.53, with a 12-month trading range of $9.82 to $21.45. Institutional investors own approximately 84.61% of the company’s shares.

NovoCure Limited (NASDAQ:NVCR - Get Free Report) has been assigned an average rating of "Hold" from the seven ratings firms that are covering the stock, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation and two have assigned a buy recommendation to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $21.20.

Several research analysts have commented on NVCR shares. Wedbush raised their price objective on NovoCure from $18.00 to $20.00 and gave the company a "neutral" rating in a research report on Friday, July 24th. HC Wainwright set a $32.00 target price on NovoCure in a research note on Friday, July 24th. Weiss Ratings reiterated a "sell (d-)" rating on shares of NovoCure in a report on Thursday, August 27th. Zacks Research raised shares of NovoCure from a "strong sell" rating to a "hold" rating in a report on Friday, July 24th. Finally, JPMorgan Chase & Co. initiated coverage on shares of NovoCure in a report on Monday, July 13th. They issued a "neutral" rating and a $17.00 price objective on the stock.

NovoCure Price Performance

NVCR stock opened at $16.53 on Tuesday. The stock has a 50-day moving average price of $16.77 and a two-hundred day moving average price of $15.36. NovoCure has a 12-month low of $9.82 and a 12-month high of $21.45. The company has a current ratio of 2.89, a quick ratio of 2.70 and a debt-to-equity ratio of 0.58. The company has a market cap of $1.92 billion, a PE ratio of -12.72 and a beta of 1.01.

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

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in NVCR. First Bancorp Inc ME acquired a new stake in shares of NovoCure in the 2nd quarter valued at about $38,000. Allworth Financial LP grew its stake in NovoCure by 182.0% in the second quarter. Allworth Financial LP now owns 2,721 shares of the medical equipment provider's stock worth $41,000 after purchasing an additional 1,756 shares in the last quarter. Larson Financial Group LLC grew its stake in NovoCure by 25.2% in the fourth quarter. Larson Financial Group LLC now owns 5,133 shares of the medical equipment provider's stock worth $66,000 after purchasing an additional 1,033 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new stake in NovoCure during the second quarter valued at approximately $84,000. Finally, Proficio Capital Partners LLC acquired a new stake in NovoCure during the second quarter valued at approximately $162,000. 84.61% of the stock is currently owned by institutional investors.

NovoCure Company Profile

NovoCure Ltd. NASDAQ: NVCR is an oncology company that develops and commercializes Tumor Treating Fields (TTFields), a noninvasive therapy that uses low-intensity, intermediate-frequency electric fields to disrupt the division of cancer cells. The company's technology is designed to be used alongside other cancer treatments and is delivered through a portable device and transducer arrays placed on the patient's body.

NovoCure's principal commercial products include Optune Gio, used with other treatments for adults with certain forms of glioblastoma, and Optune Lua, approved in the United States for use with certain therapies in adults with unresectable, locally advanced or metastatic malignant pleural mesothelioma.

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