Novo Nordisk A/S (NYSE:NVO) Shares Down 3% - Should You Sell?

Key Points

• Novo Nordisk A/S shares fell 3% recently, trading at $56.95 after reaching a low of $56.79, with trading volume significantly higher than average.
• Analyst ratings show a mixed sentiment, with Rothschild Redb upgrading to "strong-buy," while others reduced price targets, resulting in an average rating of "Moderate Buy" and a target price of $77.50.
• Novo Nordisk recently reported quarterly earnings of $0.97 per share, exceeding expectations, while announcing a semi-annual dividend paid in August with a yield of 240.0% and a payout ratio of 22.53%.

Shares of Novo Nordisk A/S (NYSE:NVO - Get Free Report) were down 3% on Friday . The company traded as low as $56.79 and last traded at $56.95. Approximately 14,730,538 shares were traded during mid-day trading, an increase of 21% from the average daily volume of 12,162,886 shares. The stock had previously closed at $58.68.

Analyst Ratings Changes

A number of brokerages have issued reports on NVO. Rothschild Redb upgraded Novo Nordisk A/S from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, September 16th. TD Cowen cut their target price on shares of Novo Nordisk A/S from $105.00 to $70.00 and set a "buy" rating for the company in a research report on Tuesday, August 19th. Berenberg Bank raised shares of Novo Nordisk A/S from a "hold" rating to a "buy" rating in a report on Wednesday, September 17th. Wall Street Zen downgraded shares of Novo Nordisk A/S from a "buy" rating to a "hold" rating in a report on Saturday, August 2nd. Finally, UBS Group lowered Novo Nordisk A/S from a "buy" rating to a "neutral" rating in a report on Tuesday, August 5th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $77.50.

Novo Nordisk A/S Price Performance

The company has a debt-to-equity ratio of 0.52, a current ratio of 0.78 and a quick ratio of 0.56. The firm has a market capitalization of $254.27 billion, a P/E ratio of 15.64, a P/E/G ratio of 2.70 and a beta of 0.68. The firm's 50 day simple moving average is $55.26 and its two-hundred day simple moving average is $63.33.

Novo Nordisk A/S (NYSE:NVO - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The company reported $0.97 earnings per share for the quarter, beating the consensus estimate of $0.93 by $0.04. The firm had revenue of $11.69 billion during the quarter, compared to the consensus estimate of $77.51 billion. Novo Nordisk A/S had a return on equity of 78.64% and a net margin of 35.60%. As a group, analysts predict that Novo Nordisk A/S will post 3.84 earnings per share for the current year.

Novo Nordisk A/S Cuts Dividend

The company also recently declared a semi-annual dividend, which was paid on Tuesday, August 26th. Investors of record on Monday, August 18th were given a dividend of $0.4119 per share. The ex-dividend date of this dividend was Monday, August 18th. This represents a dividend yield of 240.0%. Novo Nordisk A/S's dividend payout ratio (DPR) is 22.53%.

Institutional Trading of Novo Nordisk A/S

Institutional investors and hedge funds have recently modified their holdings of the business. Revolve Wealth Partners LLC increased its holdings in Novo Nordisk A/S by 8.7% in the 4th quarter. Revolve Wealth Partners LLC now owns 2,490 shares of the company's stock worth $214,000 after buying an additional 200 shares in the last quarter. Rhumbline Advisers grew its stake in shares of Novo Nordisk A/S by 10.2% during the 1st quarter. Rhumbline Advisers now owns 63,539 shares of the company's stock valued at $4,412,000 after purchasing an additional 5,898 shares during the period. Miracle Mile Advisors LLC bought a new stake in shares of Novo Nordisk A/S during the 1st quarter valued at about $278,000. GAMMA Investing LLC grew its stake in shares of Novo Nordisk A/S by 9.6% during the 1st quarter. GAMMA Investing LLC now owns 9,466 shares of the company's stock valued at $657,000 after purchasing an additional 827 shares during the period. Finally, SG Americas Securities LLC grew its stake in shares of Novo Nordisk A/S by 5.5% during the 1st quarter. SG Americas Securities LLC now owns 113,673 shares of the company's stock valued at $7,893,000 after purchasing an additional 5,948 shares during the period. Institutional investors own 11.54% of the company's stock.

Novo Nordisk A/S Company Profile

Novo Nordisk A/S, together with its subsidiaries, engages in the research and development, manufacture, and distribution of pharmaceutical products in Europe, the Middle East, Africa, Mainland China, Hong Kong, Taiwan, North America, and internationally. It operates in two segments, Diabetes and Obesity Care, and Rare Disease.

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