Eastern Bank Trims Stock Holdings in Novo Nordisk A/S $NVO

Key Points

• Eastern Bank cut its Novo Nordisk stake by 58.1% in the second quarter, selling 169,794 shares and retaining 122,583 shares valued at approximately $5.9 million.
• Novo Nordisk shares opened at $47.12, well below their 52-week high of $64.16. Analysts’ consensus rating is Hold, with an average price target of $65.56.
• Investor sentiment remains pressured by the failed Phase 3 ZEUS heart-drug trial, obesity-drug pricing and competition concerns, although Novo may be showing signs of regaining ground against Eli Lilly.

Eastern Bank lowered its stake in Novo Nordisk A/S (NYSE:NVO - Free Report) by 58.1% during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 122,583 shares of the company's stock after selling 169,794 shares during the quarter. Eastern Bank's holdings in Novo Nordisk A/S were worth $5,877,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also recently made changes to their positions in NVO. Godfrey Financial Associates Inc. bought a new stake in Novo Nordisk A/S during the 4th quarter worth approximately $25,000. Scarborough Advisors LLC bought a new position in shares of Novo Nordisk A/S in the first quarter worth approximately $26,000. WealthCollab LLC boosted its position in shares of Novo Nordisk A/S by 93.5% in the fourth quarter. WealthCollab LLC now owns 538 shares of the company's stock worth $27,000 after purchasing an additional 260 shares during the period. American National Bank & Trust purchased a new stake in shares of Novo Nordisk A/S in the fourth quarter worth $28,000. Finally, Maseco LLP purchased a new stake in shares of Novo Nordisk A/S in the fourth quarter worth $29,000. 11.54% of the stock is owned by hedge funds and other institutional investors.

Novo Nordisk A/S Stock Performance

NVO opened at $47.12 on Tuesday. The stock has a market capitalization of $210.37 billion, a price-to-earnings ratio of 11.06, a PEG ratio of 4.30 and a beta of 0.76. The company has a fifty day moving average of $46.96 and a 200 day moving average of $45.32. Novo Nordisk A/S has a fifty-two week low of $35.12 and a fifty-two week high of $64.16. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.56 and a current ratio of 0.79.

Novo Nordisk A/S (NYSE:NVO - Get Free Report) last announced its quarterly earnings results on Tuesday, March 31st. The company reported $1.03 earnings per share (EPS) for the quarter. The company had revenue of $10.85 billion for the quarter. Novo Nordisk A/S had a net margin of 37.23% and a return on equity of 63.31%. As a group, sell-side analysts forecast that Novo Nordisk A/S will post 3.38 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the stock. Weiss Ratings restated a "sell (d+)" rating on shares of Novo Nordisk A/S in a research note on Monday, July 20th. Zacks Research lowered Novo Nordisk A/S from a "hold" rating to a "strong sell" rating in a research note on Monday, July 13th. HSBC restated a "hold" rating on shares of Novo Nordisk A/S in a research report on Monday, July 6th. Citigroup reaffirmed a "neutral" rating on shares of Novo Nordisk A/S in a research note on Monday, July 20th. Finally, Wall Street Zen downgraded Novo Nordisk A/S from a "buy" rating to a "hold" rating in a research note on Saturday, June 20th. Five research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $65.56.

Novo Nordisk A/S News Roundup

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

• Positive Sentiment: Reuters reports that Novo may be beginning to regain ground in the obesity-drug race with Eli Lilly, offering investors a potential recovery narrative after two difficult years of profit warnings, leadership changes and declining share performance. Obesity battle heats up again as Novo claws way back into race with Lilly
• Neutral Sentiment: Citi maintained a neutral rating, saying the market’s reaction to the failed ZEUS heart-drug trial may have been excessive. However, the bank remains on the sidelines because of concerns about obesity-drug pricing, competition and the durability of GLP-1 growth. Citi says Novo selloff overdone but GLP-1 worries keep it on the sidelines
• Neutral Sentiment: Novo is approaching its second-quarter earnings report with investors looking for evidence that demand for injectable GLP-1 medicines is stabilizing. Results and management guidance will be important for assessing whether recent weakness reflects temporary pressure or a broader slowdown. Novo Nordisk Before Q2 Earnings: How Should Investors Play the Stock?
• Negative Sentiment: Novo disclosed that ziltivekimab failed to meet the primary endpoint in the Phase 3 ZEUS trial, failing to reduce major adverse cardiovascular events versus placebo. The setback weakens hopes of diversifying growth beyond weight-loss drugs and contributed to the recent decline in investor sentiment. Novo Nordisk shares in hot water after disappointing trial
• Negative Sentiment: Eli Lilly’s upcoming results are another near-term risk: strong Mounjaro and Zepbound sales could reinforce Lilly’s competitive advantage, while early demand for its obesity product Foundayo will be watched closely by investors comparing the two companies. Will Mounjaro and Zepbound Drive Lilly’s Q2 Results

Novo Nordisk A/S Company Profile

Novo Nordisk A/S is a Danish multinational pharmaceutical company headquartered in Bagsværd, Denmark, best known for its leadership in diabetes care and metabolic health. The company traces its roots to early Danish insulin production in the 1920s and was established in its current form through a 1989 merger of predecessor companies. Novo Nordisk develops, manufactures and markets pharmaceutical products and devices that address chronic and serious diseases, with a strong emphasis on long-term treatment and patient support.

The company’s core product portfolio centers on diabetes therapies, including a range of insulins and modern incretin-based treatments.

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