Novartis AG $NVS Shares Sold by UBS Group AG

Key Points

• UBS Group AG trimmed its stake in Novartis by 15.0% in Q4, selling 240,859 shares and now holding 1,361,274 shares worth about $187.7 million (≈0.06% of the company).
• Novartis missed Q1 estimates with core EPS of $1.99 vs. a ~$2.11 consensus and revenue slightly below forecasts, with U.S. Entresto sales pressured by generic competition—a key driver of recent weakness.
• Offsetting risks, Novartis reported multiple pipeline/regulatory milestones and acquired Avidity to add late‑stage neuromuscular assets, while generating solid free cash flow (~$3.3B); management reaffirmed FY2026 guidance but flagged stepped‑up R&D spending (~$70M/month) and policy risks from potential U.S. pricing changes.

UBS Group AG trimmed its stake in shares of Novartis AG (NYSE:NVS - Free Report) by 15.0% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,361,274 shares of the company's stock after selling 240,859 shares during the quarter. UBS Group AG owned 0.06% of Novartis worth $187,679,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently bought and sold shares of NVS. Abundance Wealth Counselors grew its stake in Novartis by 0.4% in the fourth quarter. Abundance Wealth Counselors now owns 16,927 shares of the company's stock worth $2,334,000 after purchasing an additional 73 shares in the last quarter. Atlantic Edge Private Wealth Management LLC boosted its stake in Novartis by 3.5% in the fourth quarter. Atlantic Edge Private Wealth Management LLC now owns 2,230 shares of the company's stock valued at $307,000 after acquiring an additional 75 shares during the period. South Plains Financial Inc. boosted its stake in Novartis by 39.0% in the third quarter. South Plains Financial Inc. now owns 271 shares of the company's stock valued at $35,000 after acquiring an additional 76 shares during the period. Valmark Advisers Inc. boosted its stake in Novartis by 0.9% in the fourth quarter. Valmark Advisers Inc. now owns 8,802 shares of the company's stock valued at $1,214,000 after acquiring an additional 77 shares during the period. Finally, Eastern Bank boosted its stake in Novartis by 0.9% in the fourth quarter. Eastern Bank now owns 8,654 shares of the company's stock valued at $1,193,000 after acquiring an additional 78 shares during the period. 13.12% of the stock is owned by institutional investors and hedge funds.

Key Novartis News

Here are the key news stories impacting Novartis this week:

• Positive Sentiment: Priority brands and launches delivered strong growth (Kisqali, Pluvicto, Kesimpta, Leqvio, Scemblix) and management flagged continued launch momentum—supports medium-term sales recovery. GlobeNewswire Q1 release
• Positive Sentiment: Multiple pipeline/regulatory milestones reported (Remibrutinib CHMP opinion, Ianalumab breakthrough designation/priority review, Fabhalta Phase III eGFR results) — reduces binary risk and supports future revenue upside. GlobeNewswire milestones
• Positive Sentiment: Acquisition of Avidity adds three late‑stage neuromuscular assets, expanding near‑term product optionality. Yahoo: Avidity / R&D
• Positive Sentiment: Solid free cash flow (Q1 reported ~$3.3B) provides financial flexibility for launches, buybacks or bolt‑on M&A. GlobeNewswire cash flow
• Neutral Sentiment: Company reaffirmed FY2026 guidance (low single‑digit net sales growth; core operating income down low single‑digit) — provides guidance stability but keeps the path to 2026 earnings improvements gradual. GlobeNewswire guidance
• Neutral Sentiment: Novartis signaled stepped-up R&D spending tied to the Avidity deal (up to ~$70M/month) — supports future product development but raises near-term investment and margin pressure. Yahoo: R&D spend
• Negative Sentiment: Q1 revenue and EPS missed Street estimates (core EPS $1.99 vs. ~$2.11 consensus; revenue slightly below forecasts); Entresto U.S. sales materially down due to generic competition — the immediate driver of the share weakness. Reuters: Q1 profit down
• Negative Sentiment: CEO warned U.S. MFN drug‑pricing policy could hit global access and margins, increasing regulatory/policy risk for U.S. revenues over the next 12–18 months. CNBC: CEO MFN warning
• Negative Sentiment: Erste Group trimmed its FY2026 EPS estimate modestly (to ~$8.70 from $8.82), signaling some analyst downward pressure after the quarter (consensus ~ $8.90).

Analysts Set New Price Targets

A number of equities analysts have commented on NVS shares. DZ Bank downgraded Novartis from a "strong-buy" rating to a "hold" rating in a research note on Monday, February 9th. Citigroup restated a "buy" rating on shares of Novartis in a research note on Thursday, February 5th. Wall Street Zen downgraded Novartis from a "buy" rating to a "hold" rating in a research note on Saturday, February 7th. Argus upgraded Novartis from a "hold" rating to a "buy" rating and set a $180.00 target price for the company in a research note on Wednesday, March 11th. Finally, Morgan Stanley lifted their target price on Novartis from $143.00 to $170.00 and gave the company an "overweight" rating in a research note on Thursday, March 26th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $141.20.

Novartis Stock Performance

NVS opened at $142.99 on Thursday. The business's 50 day moving average is $154.61 and its 200-day moving average is $143.75. The stock has a market cap of $272.84 billion, a PE ratio of 19.97, a price-to-earnings-growth ratio of 2.48 and a beta of 0.52. The company has a current ratio of 1.12, a quick ratio of 0.89 and a debt-to-equity ratio of 0.60. Novartis AG has a twelve month low of $104.93 and a twelve month high of $170.46.

Novartis (NYSE:NVS - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The company reported $1.99 earnings per share for the quarter, missing analysts' consensus estimates of $2.11 by ($0.12). The business had revenue of $13.52 billion for the quarter, compared to the consensus estimate of $13.54 billion. Novartis had a net margin of 25.65% and a return on equity of 40.53%. The business's quarterly revenue was down .9% on a year-over-year basis. During the same period last year, the firm posted $2.28 EPS. On average, analysts predict that Novartis AG will post 8.9 earnings per share for the current year.

Novartis Announces Dividend

The firm also recently declared an annual dividend, which was paid on Monday, March 16th. Stockholders of record on Wednesday, March 11th were issued a dividend of $4.773 per share. This represents a dividend yield of 306.0%. The ex-dividend date of this dividend was Wednesday, March 11th. Novartis's payout ratio is 43.02%.

Novartis Profile

Novartis is a Swiss multinational pharmaceutical company headquartered in Basel that researches, develops, manufactures and commercializes prescription medicines and related health-care products. Formed through the 1996 merger of Ciba-Geigy and Sandoz, Novartis operates globally and focuses on bringing therapeutics from discovery through clinical development to commercial markets worldwide.

The company's activities center on innovative pharmaceuticals across several therapeutic areas, including oncology, immunology, cardiovascular and metabolic diseases, neuroscience and ophthalmology, alongside capabilities in advanced therapies such as biologics, cell and gene therapies.

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