Novo Nordisk A/S (NYSE:NVO) Trading 6.7% Higher on Strong Earnings

Key Points

• Novo Nordisk A/S shares surged by 6.7% after reporting a quarterly earnings per share (EPS) of $0.97, exceeding expectations of $0.93.
• The company generated $11.69 billion in revenue, which significantly surpassed analyst forecasts of $77.51 billion.
• Despite positive earnings, several brokerages downgraded their ratings on Novo Nordisk A/S, with current consensus rating at "Hold" and an average target price of $93.67.

Novo Nordisk A/S (NYSE:NVO - Get Free Report) was up 6.7% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $49.10 and last traded at $48.42. Approximately 24,695,362 shares changed hands during trading, an increase of 122% from the average daily volume of 11,136,435 shares. The stock had previously closed at $45.38.

The company reported $0.97 EPS for the quarter, topping the consensus estimate of $0.93 by $0.04. Novo Nordisk A/S had a net margin of 34.52% and a return on equity of 80.94%. The company had revenue of $11.69 billion during the quarter, compared to analysts' expectations of $77.51 billion.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on NVO. BMO Capital Markets reiterated a "market perform" rating and issued a $64.00 price objective (down from $105.00) on shares of Novo Nordisk A/S in a research report on Thursday, April 17th. HSBC cut 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 report on Thursday, July 31st. UBS Group cut Novo Nordisk A/S from a "buy" rating to a "neutral" rating in a research report on Tuesday. Wall Street Zen downgraded Novo Nordisk A/S from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. Finally, Guggenheim cut Novo Nordisk A/S from a "strong-buy" rating to a "hold" rating in a report on Thursday, April 17th. Two research analysts have rated the stock with a sell rating, ten have given a hold rating and two have issued a buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $93.67.

Institutional Trading of Novo Nordisk A/S

Institutional investors have recently added to or reduced their stakes in the stock. BIP Wealth LLC boosted its holdings in Novo Nordisk A/S by 3.9% in the fourth quarter. BIP Wealth LLC now owns 3,642 shares of the company's stock valued at $313,000 after acquiring an additional 138 shares during the last quarter. First Hawaiian Bank boosted its holdings in 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 purchasing an additional 142 shares in the last quarter. Anchor Investment Management LLC raised its position in shares of Novo Nordisk A/S by 1.1% during the first quarter. Anchor Investment Management LLC now owns 13,597 shares of the company's stock valued at $944,000 after buying an additional 150 shares during the last quarter. Xponance Inc. increased 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 worth $230,000 after buying an additional 158 shares in the last quarter. Finally, Foster Dykema Cabot & Partners LLC boosted its stake in Novo Nordisk A/S by 3.8% in the first quarter. Foster Dykema Cabot & Partners LLC now owns 4,526 shares of the company's stock valued at $319,000 after acquiring an additional 166 shares during the last quarter. 11.54% of the stock is currently owned by institutional investors.

Novo Nordisk A/S Stock Up 6.4%

The firm has a market capitalization of $215.53 billion, a P/E ratio of 14.33, a PEG ratio of 1.43 and a beta of 0.63. The firm's 50-day moving average is $67.96 and its 200 day moving average is $72.01. The company has a debt-to-equity ratio of 0.70, a quick ratio of 0.56 and a current ratio of 0.74.

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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