Investors Buy Large Volume of Call Options on Novartis (NYSE:NVS)

Key Points

• Traders executed an unusual volume of calls — they bought 38,221 call options on Novartis on Tuesday, a 1,673% increase versus the stock's average daily call volume.
• Novartis beat quarterly estimates (EPS $2.03 vs. $1.99; revenue $13.86B vs. $13.85B), but shares traded down to $161.64 on elevated volume and the street consensus remains a "Hold" with an average target of $119.75.
• The company declared an annual dividend of $4.773 per share, payable March 16 to holders of record March 11 (ex-dividend date March 11), with the report noting a stated yield of 312.0%.

Novartis AG (NYSE:NVS - Get Free Report) was the recipient of some unusual options trading on Tuesday. Traders bought 38,221 call options on the stock. This is an increase of 1,673% compared to the average daily volume of 2,156 call options.

Novartis Price Performance

Shares of NYSE:NVS traded down $1.15 during trading on Tuesday, hitting $161.64. 3,455,059 shares of the stock were exchanged, compared to its average volume of 2,425,778. The company has a market cap of $341.45 billion, a PE ratio of 22.58, a P/E/G ratio of 2.45 and a beta of 0.49. The company has a current ratio of 1.12, a quick ratio of 0.89 and a debt-to-equity ratio of 0.60. The company has a fifty day moving average price of $152.92 and a two-hundred day moving average price of $137.55. Novartis has a 12-month low of $97.71 and a 12-month high of $170.46.

Novartis (NYSE:NVS - Get Free Report) last issued its quarterly earnings data on Wednesday, February 4th. The company reported $2.03 EPS for the quarter, beating analysts' consensus estimates of $1.99 by $0.04. The firm had revenue of $13.86 billion for the quarter, compared to analysts' expectations of $13.85 billion. Novartis had a net margin of 25.65% and a return on equity of 40.53%. The firm's revenue was up 1.4% on a year-over-year basis. During the same period in the prior year, the company earned $1.98 EPS. On average, analysts forecast that Novartis will post 8.45 EPS for the current year.

Novartis Dividend Announcement

The business also recently declared an annual dividend, which will be paid on Monday, March 16th. Shareholders of record on Wednesday, March 11th will be given a dividend of $4.773 per share. The ex-dividend date of this dividend is Wednesday, March 11th. This represents a yield of 312.0%. Novartis's dividend payout ratio (DPR) is presently 36.31%.

Institutional Trading of Novartis

A number of large investors have recently made changes to their positions in NVS. Arlington Trust Co LLC acquired a new position in shares of Novartis during the 4th quarter valued at about $25,000. CrossGen Wealth LLC acquired a new position in shares of Novartis in the 4th quarter valued at $28,000. Bank of Jackson Hole Trust grew its stake in shares of Novartis by 425.0% during the 4th quarter. Bank of Jackson Hole Trust now owns 231 shares of the company's stock valued at $32,000 after buying an additional 187 shares during the period. Valley Wealth Managers Inc. purchased a new stake in shares of Novartis during the 3rd quarter valued at $31,000. Finally, Measured Wealth Private Client Group LLC acquired a new stake in shares of Novartis during the 3rd quarter worth $33,000. Institutional investors and hedge funds own 13.12% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of Novartis in a research note on Thursday, February 12th. TD Cowen restated a "hold" rating on shares of Novartis in a research report on Tuesday, February 17th. Wall Street Zen cut shares of Novartis from a "buy" rating to a "hold" rating in a research note on Saturday, February 7th. Barclays upgraded shares of Novartis from an "underweight" rating to an "equal weight" rating in a research note on Tuesday, January 6th. Finally, Bank of America raised shares of Novartis from a "neutral" rating to a "buy" rating in a report on Tuesday, November 25th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $119.75.

About Novartis

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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