Novo Nordisk A/S (NYSE:NVO) Shares Gap Down - Time to Sell?

Key Points

• Novo Nordisk A/S shares gapped down from $55.61 to $54.14 prior to trading on Monday, closing at $54.93 with significant trading volume of nearly 6 million shares.
• Analysts have recently changed their ratings on Novo Nordisk A/S, with price targets adjusted from $105.00 to $70.00 by TD Cowen and from $59.00 to $47.00 by Morgan Stanley.
• The company reported a quarterly earnings of $0.97 EPS, exceeding analyst expectations, along with a revenue of $11.69 billion, despite a lower price target consensus of $75.33.

Novo Nordisk A/S (NYSE:NVO - Get Free Report)'s stock price gapped down prior to trading on Monday . The stock had previously closed at $55.61, but opened at $54.14. Novo Nordisk A/S shares last traded at $54.93, with a volume of 5,998,509 shares traded.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the company. TD Cowen lowered their price target on Novo Nordisk A/S from $105.00 to $70.00 and set a "buy" rating on the stock in a research note on Tuesday, August 19th. Dbs Bank raised Novo Nordisk A/S from a "strong sell" rating to a "hold" rating in a research note on Friday, August 22nd. Morgan Stanley lowered Novo Nordisk A/S from an "overweight" rating to an "underweight" rating and lowered their price target for the stock from $59.00 to $47.00 in a research note on Monday. Berenberg Bank raised Novo Nordisk A/S from a "hold" rating to a "buy" rating in a research note on Wednesday, September 17th. Finally, UBS Group lowered Novo Nordisk A/S from a "buy" rating to a "neutral" rating in a research note on Tuesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $75.33.

Novo Nordisk A/S Stock Up 0.0%

The stock has a market capitalization of $248.31 billion, a price-to-earnings ratio of 15.27, a PEG ratio of 2.11 and a beta of 0.66. The business has a fifty day moving average of $56.03 and a 200 day moving average of $64.38. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.78 and a quick ratio of 0.56.

Novo Nordisk A/S (NYSE:NVO - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The company reported $0.97 EPS for the quarter, beating analysts' consensus estimates of $0.93 by $0.04. Novo Nordisk A/S had a return on equity of 78.64% and a net margin of 35.60%.The firm had revenue of $11.69 billion for the quarter, compared to analysts' expectations of $77.51 billion. As a group, equities 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. Shareholders of record on Monday, August 18th were paid a dividend of $0.4119 per share. This represents a yield of 240.0%. The ex-dividend date was Monday, August 18th. Novo Nordisk A/S's dividend payout ratio is 22.53%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the company. Jennison Associates LLC lifted its stake in Novo Nordisk A/S by 0.3% during the second quarter. Jennison Associates LLC now owns 18,885,343 shares of the company's stock worth $1,303,466,000 after purchasing an additional 63,341 shares in the last quarter. Loomis Sayles & Co. L P lifted its stake in Novo Nordisk A/S by 1.5% during the second quarter. Loomis Sayles & Co. L P now owns 12,576,031 shares of the company's stock worth $867,998,000 after purchasing an additional 187,789 shares in the last quarter. Kingstone Capital Partners Texas LLC lifted its stake in Novo Nordisk A/S by 301,443.6% during the second quarter. Kingstone Capital Partners Texas LLC now owns 10,005,216 shares of the company's stock worth $690,560,000 after purchasing an additional 10,001,898 shares in the last quarter. Folketrygdfondet lifted its stake in Novo Nordisk A/S by 6.9% during the first quarter. Folketrygdfondet now owns 9,521,912 shares of the company's stock worth $661,202,000 after purchasing an additional 617,974 shares in the last quarter. Finally, Sustainable Growth Advisers LP lifted its stake in Novo Nordisk A/S by 11.7% during the second quarter. Sustainable Growth Advisers LP now owns 6,192,636 shares of the company's stock worth $427,416,000 after purchasing an additional 649,390 shares in the last quarter. 11.54% of the stock is currently owned by institutional investors and hedge funds.

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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