NovoCure Limited (NASDAQ:NVCR) Stock Rated "Hold" by Sell-Side Analysts

Key Points

• Analysts give NovoCure a consensus “Hold” rating: Of eight brokerages, four rate the stock Hold, three Buy and one Sell; the average 12-month price target is $22.33.
• The FDA declined to approve NovoCure’s investigational Optune Mya device, citing uncertainty about its clinical benefit, creating a setback for the product’s regulatory and commercial prospects.
• NovoCure beat quarterly expectations, reporting an adjusted loss of $0.09 per share and revenue of $193.4 million, up 15.7% year over year. Analyst views diverged, with Ladenburg raising its target to $31 while Wedbush cut its target to $19.

NovoCure Limited (NASDAQ:NVCR - Get Free Report) has received a consensus recommendation of "Hold" from the eight brokerages that are currently covering the stock, Marketbeat reports. One analyst has rated the stock with a sell rating, four have issued a hold rating and three have issued a buy rating on the company. The average 12 month price target among analysts that have covered the stock in the last year is $22.33.

Several analysts have recently weighed in on NVCR shares. Wells Fargo & Company decreased their price objective on NovoCure from $20.00 to $15.00 and set an "equal weight" rating on the stock in a report on Friday, October 30th. LADENBURG THALM/SH SH upped their target price on NovoCure from $27.00 to $31.00 and gave the company a "buy" rating in a research note on Tuesday. Wedbush reduced their target price on NovoCure from $20.00 to $19.00 and set a "neutral" rating for the company in a research report on Tuesday. Zacks Research raised NovoCure from a "strong sell" rating to a "hold" rating in a research report on Friday, July 24th. Finally, Wall Street Zen upgraded shares of NovoCure from a "hold" rating to a "buy" rating in a research note on Saturday, October 31st.

Key Stories Impacting NovoCure

Here are the key news stories impacting NovoCure this week:

• Positive Sentiment: Ladenburg Thalmann raised its price target to $31 from $27 and maintained a buy rating, offering a more optimistic view of NovoCure’s prospects. Ladenburg Thalmann rating
• Negative Sentiment: The FDA declined to approve Optune Mya, NovoCure’s investigational wearable device intended to treat brain metastases from lung cancer. The agency’s concern about uncertainty over clinical benefit is a setback for the product’s regulatory path and potential commercial contribution. FDA decision on Optune Mya
• Negative Sentiment: Wedbush lowered its price target to $19 from $20 and kept a neutral rating, a modestly less favorable analyst assessment. Wedbush rating

Hedge Funds Weigh In On NovoCure

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Ieq Capital LLC grew its position in NovoCure by 24.3% in the third quarter. Ieq Capital LLC now owns 341,782 shares of the medical equipment provider's stock valued at $5,451,000 after acquiring an additional 66,821 shares during the period. Focus Advisor Solutions LLC bought a new position in shares of NovoCure during the third quarter valued at $173,000. Diversified Trust Co bought a new position in shares of NovoCure during the third quarter valued at $710,000. Allworth Financial LP lifted its holdings in shares of NovoCure by 323.9% during the third quarter. Allworth Financial LP now owns 11,535 shares of the medical equipment provider's stock valued at $175,000 after acquiring an additional 8,814 shares during the period. Finally, Russell Investments Group Ltd. boosted its stake in shares of NovoCure by 7.9% in the 3rd quarter. Russell Investments Group Ltd. now owns 196,874 shares of the medical equipment provider's stock valued at $3,140,000 after purchasing an additional 14,358 shares in the last quarter. 84.61% of the stock is owned by institutional investors.

NovoCure Stock Down 5.7%

Shares of NVCR stock opened at $11.81 on Wednesday. NovoCure has a 12 month low of $9.82 and a 12 month high of $21.45. The firm has a market cap of $1.38 billion, a PE ratio of -11.14 and a beta of 1.09. The stock has a 50 day moving average of $15.18 and a 200-day moving average of $14.77. The company has a quick ratio of 2.34, a current ratio of 2.49 and a debt-to-equity ratio of 0.49.

NovoCure (NASDAQ:NVCR - Get Free Report) last announced its quarterly earnings data on Thursday, October 29th. The medical equipment provider reported ($0.09) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.23) by $0.14. The business had revenue of $193.40 million for the quarter, compared to the consensus estimate of $182.28 million. NovoCure had a negative net margin of 16.78% and a negative return on equity of 35.81%. NovoCure's quarterly revenue was up 15.7% on a year-over-year basis. During the same quarter last year, the company posted ($0.33) earnings per share. On average, equities analysts predict that NovoCure will post -1.09 EPS for the current year.

About NovoCure

NovoCure is a global oncology company that develops and commercializes Tumor Treating Fields (TTFields), a cancer treatment that uses wearable devices to deliver low-intensity electric fields intended to disrupt cancer cell division. Its products include Optune Gio and Optune Lua, which are used to treat certain cancers. The company is headquartered in Baar, Switzerland, and serves patients in markets across North America, Europe and Asia. NovoCure was founded in 2000 by Yoram Palti, a medical researcher who developed the TTFields approach.

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