Novo Nordisk A/S (NYSE:NVO) Shares Up 2.2% - Should You Buy?

Key Points

• Novo Nordisk A/S shares increased by 2.2% with the last traded price at $52.06, although trading volume was down 45% from the average.
• Analyst ratings vary, with HSBC downgrading the stock to a “hold” with a target price of $57.00, while BNP Paribas Exane upgraded it to “neutral” with a target of $54.00.
• The company reported earnings of $0.97 per share for the quarter, exceeding expectations of $0.93, and revealed a dividend of $0.4119 per share with a 240.0% yield.

Novo Nordisk A/S (NYSE:NVO - Get Free Report)'s stock price shot up 2.2% during trading on Friday . The stock traded as high as $52.04 and last traded at $52.06. 6,270,712 shares were traded during trading, a decline of 45% from the average session volume of 11,385,890 shares. The stock had previously closed at $50.95.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on NVO. HSBC downgraded shares of Novo Nordisk A/S from a "buy" rating to a "hold" rating and set a $57.00 target price on the stock. in a research note on Thursday, July 31st. Dbs Bank cut shares of Novo Nordisk A/S to a "sell" rating in a report on Friday, April 25th. BNP Paribas Exane upgraded shares of Novo Nordisk A/S from an "underperform" rating to a "neutral" rating and set a $54.00 target price for the company in a research note on Wednesday. BNP Paribas raised shares of Novo Nordisk A/S from an "underperform" rating to a "neutral" rating in a report on Wednesday. Finally, UBS Group cut shares of Novo Nordisk A/S from a "buy" rating to a "neutral" rating in a research note on Tuesday, August 5th. One research analyst has rated the stock with a sell rating, twelve have given a hold rating and two have given a buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $83.75.

Novo Nordisk A/S Stock Up 2.9%

The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.56 and a current ratio of 0.78. The company has a market capitalization of $233.99 billion, a price-to-earnings ratio of 14.41, a PEG ratio of 1.75 and a beta of 0.63. The business's 50 day moving average is $65.40 and its 200 day moving average is $70.66.

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

Novo Nordisk A/S Cuts Dividend

The business also recently disclosed a semi-annual dividend, which will be paid on Tuesday, August 26th. Investors of record on Monday, August 18th will be given a dividend of $0.4119 per share. This represents a yield of 240.0%. The ex-dividend date is Monday, August 18th. Novo Nordisk A/S's dividend payout ratio (DPR) is currently 45.05%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of NVO. Strategic Investment Solutions Inc. IL raised its stake in shares of Novo Nordisk A/S by 2,727.3% during the 4th quarter. Strategic Investment Solutions Inc. IL now owns 311 shares of the company's stock worth $27,000 after purchasing an additional 300 shares in the last quarter. Park Square Financial Group LLC bought a new position in shares of Novo Nordisk A/S during the fourth quarter worth approximately $29,000. Transce3nd LLC acquired a new stake in Novo Nordisk A/S during the fourth quarter worth approximately $33,000. North Capital Inc. bought a new position in Novo Nordisk A/S during the 1st quarter worth $27,000. Finally, Copeland Capital Management LLC raised its position in shares of Novo Nordisk A/S by 184.8% in the 1st quarter. Copeland Capital Management LLC now owns 393 shares of the company's stock worth $27,000 after acquiring an additional 255 shares in the last quarter. 11.54% of the stock is owned by institutional investors and hedge funds.

About Novo Nordisk A/S

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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