Novo Nordisk A/S (NYSE:NVO) Stock Price Down 2.6% - Should You Sell?

Key Points

• Shares of Novo Nordisk A/S dropped by 2.6% during mid-day trading, reaching a low of $52.93 before last trading at $53.37, with a total volume of 12.37 million shares exchanged.
• Analysts have recently revised their price targets, with Morgan Stanley lowering its target from $59.00 to $47.00 and TD Cowen reducing its price target from $105.00 to $70.00, while maintaining a "buy" rating.
• The company has a strong financial standing with a market cap of $238.29 billion and reported a net margin of 35.60%, alongside a return on equity of 78.64%.

Novo Nordisk A/S (NYSE:NVO - Get Free Report) shares fell 2.6% during mid-day trading on Wednesday . The stock traded as low as $52.93 and last traded at $53.37. 12,369,305 shares traded hands during mid-day trading, an increase of 2% from the average session volume of 12,071,460 shares. The stock had previously closed at $54.78.

Analysts Set New Price Targets

NVO has been the topic of a number of research analyst reports. Morgan Stanley cut Novo Nordisk A/S from an "overweight" rating to an "underweight" rating and reduced their target price for the company from $59.00 to $47.00 in a report on Monday, September 29th. TD Cowen cut their target price on shares of 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 shares of Novo Nordisk A/S from a "strong sell" rating to a "hold" rating in a report on Friday, August 22nd. BNP Paribas raised shares of Novo Nordisk A/S from an "underperform" rating to a "neutral" rating in a report on Wednesday, August 13th. Finally, BNP Paribas Exane raised shares of Novo Nordisk A/S from an "underperform" rating to a "neutral" rating and set a $54.00 price objective on the stock in a report on Wednesday, August 13th. Two research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $76.00.

Novo Nordisk A/S Stock Performance

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 stock has a market cap of $238.29 billion, a price-to-earnings ratio of 14.66, a PEG ratio of 2.53 and a beta of 0.68. The company's 50 day simple moving average is $56.46 and its 200 day simple moving average is $62.58.

Novo Nordisk A/S (NYSE:NVO - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $0.97 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.93 by $0.04. The firm had revenue of $11.69 billion for the quarter, compared to analyst estimates of $77.51 billion. Novo Nordisk A/S had a return on equity of 78.64% and a net margin of 35.60%. On average, equities research 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 announced a semi-annual dividend, which was paid on Tuesday, August 26th. Investors of record on Monday, August 18th were issued a $0.4119 dividend. This represents a dividend yield of 240.0%. The ex-dividend date was Monday, August 18th. Novo Nordisk A/S's payout ratio is presently 22.53%.

Hedge Funds Weigh In On Novo Nordisk A/S

Institutional investors have recently bought and sold shares of the stock. First Hawaiian Bank increased its position in shares of Novo Nordisk A/S by 0.6% in the first quarter. First Hawaiian Bank now owns 22,401 shares of the company's stock worth $1,556,000 after acquiring an additional 142 shares in the last quarter. Anchor Investment Management LLC grew its position in Novo Nordisk A/S by 1.1% during the 1st quarter. Anchor Investment Management LLC now owns 13,597 shares of the company's stock worth $944,000 after purchasing an additional 150 shares in the last quarter. Xponance Inc. grew its holdings in shares of Novo Nordisk A/S by 5.0% during the first quarter. Xponance Inc. now owns 3,314 shares of the company's stock valued at $230,000 after buying an additional 158 shares in the last quarter. Foster Dykema Cabot & Partners LLC grew its holdings in shares of Novo Nordisk A/S by 3.8% during the first quarter. Foster Dykema Cabot & Partners LLC now owns 4,526 shares of the company's stock valued at $319,000 after buying an additional 166 shares in the last quarter. Finally, Werba Rubin Papier Wealth Management grew its holdings in shares of Novo Nordisk A/S by 4.1% during the second quarter. Werba Rubin Papier Wealth Management now owns 4,378 shares of the company's stock valued at $302,000 after buying an additional 173 shares in the last quarter. Hedge funds and other institutional investors 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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