NovoCure Limited (NVCR) - What Are Investment Firms Saying About This Stock?

Key Points

• Analyst sentiment is neutral: Seven brokerages give NovoCure an average “Hold” rating, with one sell, four hold, and two buy recommendations. The average 12-month price target is $21.20, above the cited share price of $14.07.
• Quarterly results beat expectations: NovoCure reported an adjusted loss of $0.13 per share versus the expected $0.33 loss, while revenue reached $183.58 million, up 15.6% year over year and above forecasts.
• Institutional ownership remains high: Institutional investors own 84.61% of the company, with several major firms increasing their stakes. Despite revenue growth, NovoCure remains unprofitable, with a negative net margin and analysts forecasting a full-year loss.

NovoCure Limited (NASDAQ:NVCR - Get Free Report) has received an average rating of "Hold" from the seven brokerages that are presently covering the company, MarketBeat.com reports. One analyst has rated the stock with a sell rating, four have given a hold rating and two have issued a buy rating on the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $21.20.

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

NovoCure Trading Down 2.4%

Shares of NovoCure stock opened at $14.07 on Friday. The firm has a market capitalization of $1.64 billion, a PE ratio of -10.82 and a beta of 0.99. 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 firm's 50 day moving average is $16.39 and its 200 day moving average is $15.72. NovoCure has a 1 year low of $9.82 and a 1 year high of $21.45.

NovoCure (NASDAQ:NVCR - Get Free Report) last released its quarterly earnings data 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. The business had revenue of $183.58 million during the quarter, compared to analysts' expectations of $172.44 million. NovoCure had a negative net margin of 21.25% and a negative return on equity of 44.00%. The firm's quarterly revenue was up 15.6% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.36) EPS. Equities research analysts forecast that NovoCure will post -1.21 earnings per share for the current fiscal year.

Institutional Investors Weigh In On NovoCure

A number of institutional investors have recently added to or reduced their stakes in NVCR. Quantinno Capital Management LP lifted its holdings in shares of NovoCure by 23.7% during the first quarter. Quantinno Capital Management LP now owns 2,487,376 shares of the medical equipment provider's stock worth $27,112,000 after purchasing an additional 477,128 shares during the period. Renaissance Technologies LLC increased its holdings in NovoCure by 11.8% in the first quarter. Renaissance Technologies LLC now owns 1,551,554 shares of the medical equipment provider's stock valued at $16,912,000 after purchasing an additional 163,800 shares during the period. SG Americas Securities LLC increased its holdings in NovoCure by 346.7% in the first quarter. SG Americas Securities LLC now owns 1,245,541 shares of the medical equipment provider's stock valued at $13,576,000 after purchasing an additional 966,735 shares during the period. Dimensional Fund Advisors LP increased its holdings in NovoCure by 27.6% in the first quarter. Dimensional Fund Advisors LP now owns 960,056 shares of the medical equipment provider's stock valued at $10,462,000 after purchasing an additional 207,913 shares during the period. Finally, Allianz Asset Management GmbH bought a new position in NovoCure during the 2nd quarter worth $2,248,000. 84.61% of the stock is owned by institutional investors.

About NovoCure

NovoCure Ltd. NASDAQ: NVCR is an oncology company focused on developing and commercializing Tumor Treating Fields (TTFields), a non-invasive cancer treatment that uses low-intensity alternating electric fields to disrupt the division of tumor cells. The company's technology is designed to be delivered through wearable systems that generate fields at specific frequencies and intensities.

NovoCure's primary products include Optune Gio, marketed in the United States for certain adults with glioblastoma, and Optune Lua, approved in the United States for use with standard chemotherapy in adults with unresectable, locally advanced or metastatic malignant pleural mesothelioma.

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