NovoCure (NASDAQ:NVCR) Given Buy Rating at HC Wainwright

Key Points

• HC Wainwright reiterated a Buy rating on NovoCure and set a $46 price target, down from $48. The new target still implies substantial upside from the recent share price.
• NovoCure’s latest quarter showed revenue growth but earnings missed expectations, with EPS of -$0.62 versus a -$0.51 estimate and revenue of $174.06 million, up 12.3% year over year.
• The stock has seen mixed sentiment overall: analysts’ consensus remains Hold with an average price target of $26.86, while insiders recently sold shares and institutional investors continue to own the majority of the company.

NovoCure (NASDAQ:NVCR - Get Free Report)'s stock had its "buy" rating reaffirmed by HC Wainwright in a research note issued on Thursday,Benzinga reports. They presently have a $46.00 target price on the medical equipment provider's stock, down from their previous target price of $48.00. HC Wainwright's price objective suggests a potential upside of 212.73% from the stock's previous close.

Several other research firms also recently issued reports on NVCR. Evercore reaffirmed an "outperform" rating on shares of NovoCure in a research note on Friday, May 1st. Weiss Ratings raised shares of NovoCure from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Monday, June 1st. Wedbush reissued a "neutral" rating and issued a $18.00 target price on shares of NovoCure in a research note on Thursday, April 16th. Finally, Wells Fargo & Company boosted their target price on shares of NovoCure from $13.50 to $17.00 and gave the company an "equal weight" rating in a research note on Monday, May 4th. Four research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $26.86.

NovoCure Price Performance

Shares of NASDAQ:NVCR traded down $3.14 during midday trading on Thursday, hitting $14.71. 2,242,695 shares of the stock were exchanged, compared to its average volume of 1,759,445. The stock has a market cap of $1.70 billion, a P/E ratio of -9.61 and a beta of 0.93. The company has a current ratio of 2.90, a quick ratio of 2.70 and a debt-to-equity ratio of 0.71. NovoCure has a twelve month low of $9.82 and a twelve month high of $18.92. The company has a 50 day moving average price of $15.46 and a 200-day moving average price of $13.53.

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

Insider Activity

In related news, Director Jeryl L. Hilleman sold 2,945 shares of the stock in a transaction dated Tuesday, June 2nd. The stock was 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 approximately $218,587.97. This represents a 17.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Frank X. Leonard sold 34,273 shares of NovoCure 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 owned 459,520 shares of the company's stock, valued at $8,239,193.60. This trade represents a 6.94% 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 a total of 51,943 shares of company stock valued at $893,171 in the last three months. Company insiders own 5.52% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Empowered Funds LLC acquired a new position in shares of NovoCure during the 4th quarter valued at about $33,000. Kestra Advisory Services LLC acquired a new position in shares of NovoCure during the 4th quarter valued at about $49,000. Larson Financial Group LLC increased its stake in shares of NovoCure by 662.1% during the 3rd quarter. Larson Financial Group LLC now owns 4,100 shares of the medical equipment provider's stock valued at $53,000 after acquiring an additional 3,562 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. increased its stake in shares of NovoCure by 25.9% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,442 shares of the medical equipment provider's stock valued at $70,000 after acquiring an additional 1,120 shares during the last quarter. Finally, Acadian Asset Management LLC acquired a new position in shares of NovoCure during the 1st quarter valued at about $87,000. Institutional investors and hedge funds own 84.61% of the company's stock.

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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