Novartis AG (NYSE:NVS) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Consensus "Hold" — Sixteen brokerages give Novartis a consensus rating of "Hold" (2 sell, 7 hold, 6 buy, 1 strong buy) with an average 12‑month target price of $141.20.
• Recent results slightly beat expectations: Novartis reported Q4 EPS of $2.03 versus $1.99 consensus and revenue of $13.86B versus $13.85B, with a net margin of 25.65% and ROE of 40.53%.
• Dividend and size: Novartis paid an annual dividend of $4.773 (ex‑dividend March 11) and has a payout ratio of 43.02%; the stock trades near $153.42 with a market cap around $292.8B.

Novartis AG (NYSE:NVS - Get Free Report) has received a consensus rating of "Hold" from the sixteen brokerages that are currently covering the firm, Marketbeat Ratings reports. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $141.20.

A number of equities analysts recently issued reports on the stock. DZ Bank cut shares of Novartis from a "strong-buy" rating to a "hold" rating in a research note on Monday, February 9th. Sanford C. Bernstein upgraded shares of Novartis to a "hold" rating in a research note on Thursday, March 19th. Barclays upgraded shares of Novartis from an "underweight" rating to an "equal weight" rating in a research note on Tuesday, January 6th. TD Cowen reiterated a "hold" rating on shares of Novartis in a research note on Tuesday, February 17th. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of Novartis in a research note on Thursday, February 12th.

Hedge Funds Weigh In On Novartis

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

Novartis Stock Down 0.7%

NYSE:NVS opened at $153.42 on Wednesday. The firm's 50-day moving average price is $157.24 and its 200-day moving average price is $142.50. The company has a market capitalization of $292.75 billion, a PE ratio of 21.43, a P/E/G ratio of 2.65 and a beta of 0.52. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.12 and a quick ratio of 0.89. Novartis has a 1-year low of $104.93 and a 1-year high of $170.46.

Novartis (NYSE:NVS - Get Free Report) last released its earnings results on Tuesday, February 3rd. The company reported $2.03 earnings per share for the quarter, topping analysts' consensus estimates of $1.99 by $0.04. The firm had revenue of $13.86 billion for the quarter, compared to the consensus estimate of $13.85 billion. Novartis had a net margin of 25.65% and a return on equity of 40.53%. The company's revenue was up 1.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.98 EPS. On average, equities analysts predict that Novartis will post 8.45 EPS for the current fiscal year.

Novartis Announces Dividend

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

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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