Novartis (NYSE:NVS) Hits New 12-Month High - Still a Buy?

Key Points

• Novartis AG shares reached a new 52-week high, trading at $128.24 after previously closing at $126.64, with a volume of 293,425 shares.
• Analyst ratings for Novartis show a mix of opinions, with a consensus rating of "Hold" and an average price target of $123.50. Morgan Stanley upgraded the stock to "equal weight," while Wall Street Zen downgraded it from "strong-buy" to "buy."
• The company reported earnings of $2.42 per share, exceeding analysts' expectations and showing a 12.3% revenue increase year-over-year, indicating strong financial performance.

Shares of Novartis AG (NYSE:NVS - Get Free Report) reached a new 52-week high on Wednesday . The company traded as high as $128.26 and last traded at $128.24, with a volume of 293425 shares trading hands. The stock had previously closed at $126.64.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the company. Morgan Stanley raised Novartis from an "underweight" rating to an "equal weight" rating and set a $123.00 price objective for the company in a research report on Friday, August 8th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of Novartis in a research report on Thursday, August 21st. Finally, Wall Street Zen lowered Novartis from a "strong-buy" rating to a "buy" rating in a report on Friday, August 22nd. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $124.33.

Novartis Trading Down 0.8%

The stock has a market capitalization of $271.97 billion, a PE ratio of 18.74, a P/E/G ratio of 1.81 and a beta of 0.63. The company has a current ratio of 0.82, a quick ratio of 0.62 and a debt-to-equity ratio of 0.53. The stock has a 50 day moving average price of $121.25 and a 200-day moving average price of $115.21.

Novartis (NYSE:NVS - Get Free Report) last released its quarterly earnings results on Thursday, July 17th. The company reported $2.42 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.38 by $0.04. The firm had revenue of $14.05 billion for the quarter, compared to the consensus estimate of $13.94 billion. Novartis had a return on equity of 41.08% and a net margin of 25.64%.The company's revenue for the quarter was up 12.3% on a year-over-year basis. During the same period last year, the business posted $1.97 EPS. Sell-side analysts expect that Novartis AG will post 8.45 earnings per share for the current year.

Hedge Funds Weigh In On Novartis

A number of institutional investors and hedge funds have recently modified their holdings of NVS. Raiffeisen Bank International AG purchased a new position in Novartis during the fourth quarter valued at $25,000. Nexus Investment Management ULC purchased a new position in Novartis during the first quarter valued at $25,000. WPG Advisers LLC purchased a new position in Novartis during the first quarter valued at $25,000. Tsfg LLC lifted its position in Novartis by 366.0% during the first quarter. Tsfg LLC now owns 233 shares of the company's stock valued at $26,000 after purchasing an additional 183 shares in the last quarter. Finally, GFG Capital LLC purchased a new position in Novartis during the second quarter valued at $26,000. 13.12% of the stock is currently owned by hedge funds and other institutional investors.

Novartis Company Profile

Novartis AG engages in the research, development, manufacture, and marketing of healthcare products in Switzerland and internationally. The company offers prescription medicines for patients and physicians. It focuses on therapeutic areas, such as cardiovascular, renal and metabolic, immunology, neuroscience, and oncology, as well as ophthalmology and hematology.