Novo Nordisk A/S (NYSE:NVO) Declares $0.58 Dividend

Key Points

• Novo Nordisk declared a $0.5786 per-share dividend, payable August 25 to shareholders of record on August 17. The company’s dividend payout ratio is 36.9%, suggesting earnings currently provide adequate coverage.
• Novo Nordisk reported quarterly EPS of $0.94 and revenue of $11.98 billion, with analysts expecting full-year EPS of $3.39. Analysts project next year’s earnings will cover the company’s expected $1.74 annual dividend.
• The stock rose 2.5% to $45.65, while analyst sentiment remained broadly cautious: five analysts rated it Buy, 14 Hold and two Sell, resulting in a consensus rating of Hold and a $65.81 price target.

Novo Nordisk A/S (NYSE:NVO - Get Free Report) declared a dividend on Wednesday, August 5th. Shareholders of record on Monday, August 17th will be paid a dividend of 0.5786 per share on Tuesday, August 25th. This represents a yield of 254.0%. The ex-dividend date is Monday, August 17th.

Novo Nordisk A/S has raised its dividend by an average of 0.2%annually over the last three years. Novo Nordisk A/S has a dividend payout ratio of 36.9% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Novo Nordisk A/S to earn $3.28 per share next year, which means the company should continue to be able to cover its $1.74 annual dividend with an expected future payout ratio of 53.0%.

Novo Nordisk A/S Stock Up 2.5%

NVO traded up $1.12 during mid-day trading on Thursday, reaching $45.65. 7,682,218 shares of the stock were exchanged, compared to its average volume of 18,238,273. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.56 and a current ratio of 0.79. The stock has a market capitalization of $203.81 billion, a PE ratio of 11.16, a price-to-earnings-growth ratio of 4.03 and a beta of 0.76. The company has a 50 day moving average price of $46.96 and a two-hundred day moving average price of $45.12. Novo Nordisk A/S has a 1 year low of $35.12 and a 1 year high of $64.16.

Novo Nordisk A/S (NYSE:NVO - Get Free Report) last announced its earnings results on Tuesday, June 30th. The company reported $0.94 EPS for the quarter. Novo Nordisk A/S had a net margin of 35.36% and a return on equity of 61.20%. The company had revenue of $11.98 billion during the quarter. As a group, research analysts anticipate that Novo Nordisk A/S will post 3.39 EPS for the current year.

Wall Street Analyst Weigh In

A number of brokerages recently commented on NVO. Wall Street Zen lowered Novo Nordisk A/S from a "buy" rating to a "hold" rating in a report on Saturday, June 20th. Nordea Equity Research upgraded shares of Novo Nordisk A/S from a "hold" rating to a "buy" rating in a research note on Friday, June 19th. BMO Capital Markets reiterated a "market perform" rating and set a $47.00 price target on shares of Novo Nordisk A/S in a research report on Thursday. Zacks Research lowered shares of Novo Nordisk A/S from a "hold" rating to a "strong sell" rating in a research report on Monday, July 13th. Finally, HSBC restated a "hold" rating on shares of Novo Nordisk A/S in a research report on Monday, July 6th. Five research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $65.81.

Novo Nordisk A/S Company Profile

Novo Nordisk A/S is a Danish multinational pharmaceutical company headquartered in Bagsværd, Denmark, best known for its leadership in diabetes care and metabolic health. The company traces its roots to early Danish insulin production in the 1920s and was established in its current form through a 1989 merger of predecessor companies. Novo Nordisk develops, manufactures and markets pharmaceutical products and devices that address chronic and serious diseases, with a strong emphasis on long-term treatment and patient support.

The company’s core product portfolio centers on diabetes therapies, including a range of insulins and modern incretin-based treatments.

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