NovoCure Limited (NASDAQ:NVCR) Receives Average Rating of "Hold" from Analysts

Key Points

• NovoCure currently has a consensus analyst rating of “Hold”, based on six covering firms: one sell, three hold, and two buy ratings. The average 1-year price target is $24.80.
• The company reported mixed quarterly results, with revenue of $174.06 million beating expectations, while earnings per share of -$0.62 missed estimates. Analysts expect NovoCure to post -1.55 EPS for the full year.
• Insider activity has been notable, with CEO Frank X. Leonard and Director Allyson J. Ocean both selling shares recently. Insiders sold a total of 51,943 shares over the last 90 days.

Shares of NovoCure Limited (NASDAQ:NVCR - Get Free Report) have received a consensus recommendation of "Hold" from the six research firms that are currently covering the firm, MarketBeat reports. One research analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation and two have given a buy recommendation to the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $24.80.

A number of brokerages have recently commented on NVCR. Wedbush reaffirmed a "neutral" rating and set a $18.00 price objective on shares of NovoCure in a research note on Thursday, April 16th. HC Wainwright reiterated a "buy" rating and issued a $46.00 target price (down from $48.00) on shares of NovoCure in a research note on Thursday, June 18th. Weiss Ratings raised shares of NovoCure from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Monday, June 1st. Evercore reissued an "outperform" rating on shares of NovoCure in a research note on Friday, May 1st. Finally, Wells Fargo & Company lifted their price objective on NovoCure from $13.50 to $17.00 and gave the stock an "equal weight" rating in a report on Monday, May 4th.

Insider Activity

In related news, CEO Frank X. Leonard sold 34,273 shares of the company's stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $17.93, for a total transaction of $614,514.89. Following the completion of the sale, the chief executive officer owned 459,520 shares of the company's stock, valued at approximately $8,239,193.60. This represents a 6.94% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Allyson J. Ocean sold 2,945 shares of the company's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $15.77, for a total value of $46,442.65. Following the completion of the sale, the director owned 11,324 shares of the company's stock, valued at $178,579.48. This trade represents a 20.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 51,943 shares of company stock valued at $893,171 in the last ninety days. 5.52% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On NovoCure

Several hedge funds and other institutional investors have recently added to or reduced their stakes in NVCR. Amundi increased its position in shares of NovoCure by 19.9% during the 1st quarter. Amundi now owns 47,583 shares of the medical equipment provider's stock worth $519,000 after purchasing an additional 7,907 shares during the last quarter. California State Teachers Retirement System grew its holdings in shares of NovoCure by 43.6% in the first quarter. California State Teachers Retirement System now owns 142,561 shares of the medical equipment provider's stock valued at $1,554,000 after purchasing an additional 43,257 shares in the last quarter. Eversept Partners LP increased its position in shares of NovoCure by 11.5% during the first quarter. Eversept Partners LP now owns 134,917 shares of the medical equipment provider's stock worth $1,471,000 after acquiring an additional 13,939 shares during the period. Quantinno Capital Management LP increased its holdings in NovoCure by 23.7% during the 1st quarter. Quantinno Capital Management LP now owns 2,487,376 shares of the medical equipment provider's stock worth $27,112,000 after purchasing an additional 477,128 shares during the period. Finally, Renaissance Technologies LLC increased its holdings in NovoCure by 11.8% during the 1st quarter. Renaissance Technologies LLC now owns 1,551,554 shares of the medical equipment provider's stock worth $16,912,000 after purchasing an additional 163,800 shares during the period. Institutional investors and hedge funds own 84.61% of the company's stock.

NovoCure Stock Down 2.0%

Shares of NVCR opened at $17.37 on Thursday. The company has a market capitalization of $2.01 billion, a price-to-earnings ratio of -11.35 and a beta of 0.94. NovoCure has a 52 week low of $9.82 and a 52 week high of $18.92. The stock's 50-day moving average price is $16.59 and its 200-day moving average price is $13.86. The company has a quick ratio of 2.70, a current ratio of 2.90 and a debt-to-equity ratio of 0.71.

NovoCure (NASDAQ:NVCR - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The medical equipment provider reported ($0.62) earnings per share for the quarter, missing the consensus estimate of ($0.51) by ($0.11). NovoCure had a negative net margin of 25.66% and a negative return on equity of 50.82%. The company had revenue of $174.06 million for the quarter, compared to analysts' expectations of $167.77 million. During the same quarter in the prior year, the business posted ($0.31) earnings per share. The firm's revenue was up 12.3% compared to the same quarter last year. On average, sell-side analysts predict that NovoCure will post -1.55 EPS for the current year.

About NovoCure

NovoCure is a global oncology company pioneering Tumor Treating Fields (TTFields), a novel anti-mitotic therapy for solid tumors. The company's non-invasive treatment platforms deliver low-intensity, alternating electric fields designed to disrupt cancer cell division. NovoCure's approach offers an alternative modality to complement existing therapies in oncology, with a focus on hard-to-treat malignancies.

Founded in 2000 and headquartered in Haifa, Israel, NovoCure maintains a second operational center in Portsmouth, New Hampshire.

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