Novo Nordisk A/S (NYSE:NVO) Trading Down 1.5% - Time to Sell?

Key Points

• Novo Nordisk A/S saw its stock price decline by 1.5%, closing at $50.30 after trading as low as $49.91, with a significant drop in trading volume.
• Analysts have revised their ratings on Novo Nordisk, with many downgrading to "hold" and decreasing target prices, highlighting a consensus rating of "Hold" with an average target price of $93.67.
• The company recently announced a semi-annual dividend of $0.4119 per share, indicating a payout ratio of 45.05%.

Novo Nordisk A/S (NYSE:NVO - Get Free Report)'s share price was down 1.5% during mid-day trading on Monday . The stock traded as low as $49.91 and last traded at $50.30. Approximately 6,587,423 shares traded hands during mid-day trading, a decline of 42% from the average daily volume of 11,295,737 shares. The stock had previously closed at $51.08.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on NVO shares. Hsbc Global Res downgraded Novo Nordisk A/S from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 31st. Wall Street Zen downgraded Novo Nordisk A/S from a "buy" rating to a "hold" rating in a report on Saturday, August 2nd. HSBC downgraded Novo Nordisk A/S from a "buy" rating to a "hold" rating and set a $57.00 price target for the company. in a report on Thursday, July 31st. UBS Group downgraded Novo Nordisk A/S from a "buy" rating to a "neutral" rating in a report on Tuesday, August 5th. Finally, BMO Capital Markets restated a "market perform" rating and issued a $64.00 price target (down from $105.00) on shares of Novo Nordisk A/S in a report on Thursday, April 17th. Two analysts have rated the stock with a sell rating, ten have issued a hold rating and two have given a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $93.67.

Novo Nordisk A/S Stock Performance

The company has a quick ratio of 0.56, a current ratio of 0.78 and a debt-to-equity ratio of 0.52. The firm has a market capitalization of $222.55 billion, a P/E ratio of 13.72, a P/E/G ratio of 1.75 and a beta of 0.63. The stock has a fifty day moving average of $66.68 and a 200-day moving average of $71.20.

Novo Nordisk A/S (NYSE:NVO - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported $0.97 EPS for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts' expectations of $77.51 billion. On average, research analysts anticipate that Novo Nordisk A/S will post 3.84 EPS for the current year.

Novo Nordisk A/S Cuts Dividend

The business also recently declared 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. The ex-dividend date of this dividend is Monday, August 18th. This represents a yield of 240.0%. Novo Nordisk A/S's dividend payout ratio is 45.05%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of NVO. Kingstone Capital Partners Texas LLC boosted its position 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 valued at $690,560,000 after purchasing an additional 10,001,898 shares during the last quarter. Nuveen LLC acquired a new stake in shares of Novo Nordisk A/S in the first quarter valued at approximately $370,272,000. Nuveen Asset Management LLC lifted its position in shares of Novo Nordisk A/S by 73.2% in the fourth quarter. Nuveen Asset Management LLC now owns 6,244,931 shares of the company's stock valued at $537,189,000 after buying an additional 2,639,693 shares during the last quarter. Two Sigma Investments LP acquired a new stake in shares of Novo Nordisk A/S in the fourth quarter valued at approximately $158,657,000. Finally, Amundi lifted its position in shares of Novo Nordisk A/S by 49.1% in the first quarter. Amundi now owns 4,938,507 shares of the company's stock valued at $331,576,000 after buying an additional 1,627,051 shares during 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.