Engineers Gate Manager LP Makes New $4.53 Million Investment in Novartis AG $NVS

Key Points

• Engineers Gate Manager LP purchased 28,899 Novartis shares worth approximately $4.53 million during the second quarter, while institutional investors collectively own 13.12% of the company.
• Novartis reported quarterly EPS of $2.41 on $14.95 billion in revenue, with a 23.29% net margin and 38.56% return on equity; analysts expect full-year EPS of $8.85.
• Analyst sentiment remains mixed, with six Buy ratings and ten Holds producing a consensus Hold rating and a $153 target price. Recent clinical setbacks, including the failure of del-desiran, have increased concerns about the company’s pipeline and acquisition strategy.

Engineers Gate Manager LP purchased a new position in shares of Novartis AG (NYSE:NVS - Free Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 28,899 shares of the company's stock, valued at approximately $4,529,000.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Archer Investment Corp increased its position in Novartis by 93.0% during the 1st quarter. Archer Investment Corp now owns 166 shares of the company's stock valued at $25,000 after buying an additional 80 shares in the last quarter. Highland Investment Advisors LLC acquired a new stake in Novartis in the second quarter worth about $25,000. Evolution Wealth Management Inc. grew its stake in shares of Novartis by 552.0% during the second quarter. Evolution Wealth Management Inc. now owns 163 shares of the company's stock worth $26,000 after acquiring an additional 138 shares during the last quarter. Atlatl Advisers LLC acquired a new position in shares of Novartis during the second quarter valued at about $26,000. Finally, CrossGen Wealth LLC acquired a new position in shares of Novartis during the fourth quarter valued at about $28,000. Hedge funds and other institutional investors own 13.12% of the company's stock.

Novartis Price Performance

Shares of NYSE:NVS opened at $137.22 on Friday. Novartis AG has a twelve month low of $121.57 and a twelve month high of $170.46. The company's 50 day moving average is $154.18 and its 200 day moving average is $153.00. The company has a current ratio of 0.86, a quick ratio of 0.67 and a debt-to-equity ratio of 0.89. The company has a market cap of $261.84 billion, a PE ratio of 20.70, a price-to-earnings-growth ratio of 2.66 and a beta of 0.45.

Novartis (NYSE:NVS - Get Free Report) last announced its quarterly earnings data on Tuesday, June 30th. The company reported $2.41 EPS for the quarter. The business had revenue of $14.95 billion during the quarter. Novartis had a net margin of 23.29% and a return on equity of 38.56%. On average, sell-side analysts forecast that Novartis AG will post 8.85 EPS for the current year.

Analysts Set New Price Targets

A number of research firms recently commented on NVS. Royal Bank Of Canada began coverage on shares of Novartis in a research note on Tuesday. They issued a "sector perform" rating for the company. Deutsche Bank Aktiengesellschaft cut shares of Novartis from a "buy" rating to a "hold" rating in a report on Tuesday. Citigroup reiterated a "buy" rating on shares of Novartis in a research note on Wednesday, July 22nd. Weiss Ratings reissued a "buy (b)" rating on shares of Novartis in a report on Friday, July 24th. Finally, HSBC set a $136.00 target price on Novartis in a research report on Thursday. Six investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $153.00.

Novartis News Roundup

Here are the key news stories impacting Novartis this week:

• Positive Sentiment: The stock showed signs of rebounding after its steep selloff, suggesting some investors may view the decline as an overreaction and remain confident in Novartis’s established medicines portfolio. Novartis Rebounds as $30 Billion Wipeout Draws Board Challenge
• Neutral Sentiment: Investors are focusing on how Novartis deployed roughly $30 billion in recent deals, as several acquired programs have encountered clinical setbacks. The scrutiny could lead to changes in capital-allocation priorities, deal approval processes or board composition. Focus: Novartis investors turn spotlight on M&A after trial setbacks
• Negative Sentiment: Experimental drug del-desiran failed to produce a statistically significant improvement in a late-stage trial for myotonic dystrophy type 1. The failure removes a potentially important growth asset and adds to concerns about Novartis’s pipeline. Drug Trial Setbacks Raise Questions Over Novartis’s Growth Pipeline
• Negative Sentiment: Del-desiran was the second major trial setback in a short period, contributing to a sharp weekly selloff and making investors question whether acquisitions are generating sufficient pipeline value. Deutsche Bank responded by cutting its view on the stock. Novartis extends selloff as Deutsche Bank cuts on twin drug trial setbacks
• Negative Sentiment: A major shareholder has called for a board shake-up, arguing that stronger oversight is needed after the trial failures and share-price decline. The challenge adds reputational and execution risk for management. Major Novartis shareholder calls for board shake-up after drug trial setbacks

Novartis Profile

Novartis AG NYSE: NVS is a Switzerland-based pharmaceutical company focused on discovering, developing and commercializing innovative medicines. The company's portfolio addresses major disease areas including cardiovascular, renal and metabolic conditions, immunology, neuroscience, oncology and hematology.

Novartis markets medicines such as Entresto for certain heart conditions, Cosentyx for inflammatory diseases, Kisqali for breast cancer, Kesimpta for multiple sclerosis, Leqvio for cholesterol management, Pluvicto for certain prostate cancers and Scemblix for chronic myeloid leukemia.

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