Novo Nordisk A/S (NYSE:NVO) Stock Price Down 1.8% - Here's Why

Key Points

• Novo Nordisk A/S shares fell 1.8% to close at $53.29, with trading volume down 38% from the average.
• Multiple research analysts have downgraded the stock, with recommendations ranging from "strong sell" to "hold," though it maintains a consensus rating of "Hold" with a target price of $81.00.
• The company recently announced a semi-annual dividend of $0.4119, representing a yield of 240.0% and a payout ratio of 22.53%.

Novo Nordisk A/S (NYSE:NVO - Get Free Report) shares were down 1.8% on Tuesday . The company traded as low as $52.72 and last traded at $53.29. Approximately 7,301,844 shares changed hands during trading, a decline of 38% from the average daily volume of 11,719,933 shares. The stock had previously closed at $54.28.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on NVO shares. Dbs Bank raised shares of Novo Nordisk A/S from a "strong sell" rating to a "hold" rating in a research note on Friday, August 22nd. 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. HSBC cut shares of Novo Nordisk A/S from a "buy" rating to a "hold" rating and set a $57.00 target price for the company. in a research note on Thursday, July 31st. BNP Paribas Exane raised 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, August 13th. Finally, Wall Street Zen cut shares of Novo Nordisk A/S from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. Four equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $81.00.

Novo Nordisk A/S Price Performance

The company has a current ratio of 0.78, a quick ratio of 0.56 and a debt-to-equity ratio of 0.52. The company's 50-day moving average price is $59.16 and its two-hundred day moving average price is $67.16. The company has a market cap of $240.58 billion, a P/E ratio of 14.79, a P/E/G ratio of 2.10 and a beta of 0.66.

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 analysts' consensus estimates 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 business had revenue of $11.69 billion during the quarter, compared to the consensus estimate of $77.51 billion. As a group, sell-side analysts expect 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 announced a semi-annual dividend, which was paid on Tuesday, August 26th. Shareholders of record on Monday, August 18th were given a $0.4119 dividend. 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%.

Hedge Funds Weigh In On Novo Nordisk A/S

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. NWF Advisory Services Inc. acquired a new position in Novo Nordisk A/S in the 2nd quarter worth approximately $540,000. Reynders McVeigh Capital Management LLC purchased a new stake in Novo Nordisk A/S in the 2nd quarter worth approximately $25,116,000. American Trust lifted its position in Novo Nordisk A/S by 43.9% in the 2nd quarter. American Trust now owns 7,721 shares of the company's stock worth $533,000 after buying an additional 2,356 shares in the last quarter. Centaurus Financial Inc. lifted its position in Novo Nordisk A/S by 9.4% in the 2nd quarter. Centaurus Financial Inc. now owns 11,099 shares of the company's stock worth $766,000 after buying an additional 950 shares in the last quarter. Finally, Saratoga Research & Investment Management lifted its position in Novo Nordisk A/S by 4.0% in the 2nd quarter. Saratoga Research & Investment Management now owns 1,512,677 shares of the company's stock worth $104,405,000 after buying an additional 58,517 shares in the last quarter. Institutional investors and hedge funds own 11.54% of the company's stock.

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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