NovoCure Limited (NASDAQ:NVCR) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• NovoCure has a consensus “Hold” rating from seven analysts: four holds, two buys and one sell. The average 12-month price target is $21.20, above the stock’s reported $14.84 opening price.
• The company reported stronger-than-expected quarterly results, with adjusted EPS of negative $0.13 versus the consensus estimate of negative $0.33 and revenue of $183.6 million, up 15.6% year over year.
• Insiders sold 51,943 shares worth approximately $893,000 during the last quarter, while institutional investors own 84.61% of NovoCure’s outstanding stock.

NovoCure Limited (NASDAQ:NVCR - Get Free Report) has earned a consensus rating of "Hold" from the seven analysts that are covering the stock, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and two have issued a buy rating on the company. The average twelve-month price objective among brokerages that have issued ratings on the stock in the last year is $21.20.

NVCR has been the subject of a number of research reports. Wells Fargo & Company boosted their price target on NovoCure from $13.50 to $17.00 and gave the company an "equal weight" rating in a report on Monday, May 4th. Evercore restated an "outperform" rating on shares of NovoCure in a report on Friday, May 1st. Wedbush lifted their target price on NovoCure from $18.00 to $20.00 and gave the company a "neutral" rating in a research report on Friday, July 24th. JPMorgan Chase & Co. assumed coverage on NovoCure in a report on Monday, July 13th. They issued a "neutral" rating and a $17.00 target price for the company. Finally, Weiss Ratings raised NovoCure from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Monday, June 1st.

Insider Buying and Selling

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 value of $614,514.89. Following the completion of the sale, the chief executive officer directly owned 459,520 shares of the company's stock, valued at $8,239,193.60. This represents a 6.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jeryl L. Hilleman sold 2,945 shares of the firm's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $15.77, for a total transaction of $46,442.65. Following the transaction, the director directly owned 13,861 shares in the company, valued at $218,587.97. This trade represents a 17.52% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 51,943 shares of company stock valued at $893,171 over the last quarter. 5.52% of the stock is owned by company insiders.

Hedge Funds Weigh In On NovoCure

Large investors have recently bought and sold shares of the business. AQR Capital Management LLC boosted its position in NovoCure by 56.7% during the 1st quarter. AQR Capital Management LLC now owns 28,728 shares of the medical equipment provider's stock valued at $512,000 after acquiring an additional 10,394 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of NovoCure by 3.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 74,992 shares of the medical equipment provider's stock worth $1,336,000 after acquiring an additional 2,502 shares in the last quarter. Goldman Sachs Group Inc. raised its position in shares of NovoCure by 5.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 993,670 shares of the medical equipment provider's stock worth $17,707,000 after acquiring an additional 52,180 shares in the last quarter. Acadian Asset Management LLC purchased a new stake in shares of NovoCure during the 1st quarter worth $87,000. Finally, Prudential Financial Inc. purchased a new stake in shares of NovoCure during the 2nd quarter worth $216,000. Institutional investors own 84.61% of the company's stock.

NovoCure Price Performance

NovoCure stock opened at $14.84 on Monday. The stock has a market cap of $1.73 billion, a price-to-earnings ratio of -11.42 and a beta of 0.94. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.89 and a quick ratio of 2.70. NovoCure has a 1 year low of $9.82 and a 1 year high of $21.45. The firm has a 50-day moving average of $16.45 and a two-hundred day moving average of $14.19.

NovoCure (NASDAQ:NVCR - Get Free Report) last issued its earnings results on Thursday, July 23rd. The medical equipment provider reported ($0.13) EPS for the quarter, topping analysts' consensus estimates of ($0.33) by $0.20. NovoCure had a negative net margin of 21.25% and a negative return on equity of 44.00%. The business had revenue of $183.58 million for the quarter, compared to the consensus estimate of $172.44 million. During the same period in the prior year, the firm earned ($0.36) EPS. The company's revenue for the quarter was up 15.6% compared to the same quarter last year. On average, research analysts forecast that NovoCure will post -1.27 earnings per share for the current year.

NovoCure Company Profile

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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