NovoCure (NASDAQ:NVCR) Reaches New 1-Year Low - Should You Sell?

Key Points

• NovoCure shares hit a **new 52-week low** at $10.87 during trading, closing slightly higher at $10.90 with significant trading volume of **830,502 shares**.
• Despite current challenges, various research firms have set price targets for NovoCure, with **buy ratings** ranging from $30.00 to $34.00, although Wells Fargo reduced its target to **$14.50**.
• Insider buying was noted as CFO Christoph Brackmann purchased **20,000 shares**, indicating potential confidence in the company's future performance despite recent stock price declines.

NovoCure Limited (NASDAQ:NVCR - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Monday . The company traded as low as $10.87 and last traded at $10.90, with a volume of 830502 shares changing hands. The stock had previously closed at $11.13.

Analyst Ratings Changes

A number of equities analysts have weighed in on the company. Wells Fargo & Company reissued an "equal weight" rating and set a $14.50 price target (down previously from $40.00) on shares of NovoCure in a research report on Friday, July 25th. Wall Street Zen downgraded NovoCure from a "hold" rating to a "sell" rating in a research report on Friday, April 25th. LADENBURG THALM/SH SH initiated coverage on NovoCure in a research note on Tuesday, July 8th. They issued a "buy" rating and a $30.00 price target for the company. Finally, Piper Sandler reiterated an "overweight" rating and issued a $34.00 price target on shares of NovoCure in a research note on Friday, June 27th. One research analyst has rated the stock with a sell rating, three have given a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $28.79.

NovoCure Stock Up 1.2%

The stock has a market capitalization of $1.31 billion, a P/E ratio of -7.52 and a beta of 0.61. The company has a quick ratio of 1.39, a current ratio of 1.45 and a debt-to-equity ratio of 0.28. The firm has a 50 day simple moving average of $15.31 and a two-hundred day simple moving average of $17.73.

NovoCure (NASDAQ:NVCR - Get Free Report) last announced its quarterly earnings results on Thursday, July 24th. The medical equipment provider reported ($0.36) EPS for the quarter, beating analysts' consensus estimates of ($0.39) by $0.03. NovoCure had a negative return on equity of 47.74% and a negative net margin of 27.13%. The company had revenue of $158.80 million during the quarter, compared to analysts' expectations of $153.87 million. During the same period in the prior year, the company earned ($0.31) EPS. NovoCure's revenue was up 5.6% compared to the same quarter last year. On average, equities research analysts expect that NovoCure Limited will post -1.3 earnings per share for the current year.

Insider Activity at NovoCure

In other news, CFO Christoph Brackmann purchased 20,000 shares of the company's stock in a transaction dated Tuesday, July 29th. The stock was bought at an average cost of $11.59 per share, for a total transaction of $231,800.00. Following the purchase, the chief financial officer owned 141,150 shares of the company's stock, valued at approximately $1,635,928.50. The trade was a 16.51% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 5.52% of the company's stock.

Institutional Trading of NovoCure

Institutional investors and hedge funds have recently bought and sold shares of the stock. Soleus Capital Management L.P. acquired a new stake in NovoCure during the 4th quarter worth about $81,643,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in NovoCure by 154.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,782,159 shares of the medical equipment provider's stock worth $31,758,000 after acquiring an additional 1,080,514 shares during the period. American Century Companies Inc. grew its holdings in NovoCure by 1,354.7% during the 2nd quarter. American Century Companies Inc. now owns 1,029,874 shares of the medical equipment provider's stock worth $18,332,000 after acquiring an additional 959,079 shares during the period. Capital International Investors grew its holdings in NovoCure by 12.0% during the 4th quarter. Capital International Investors now owns 8,873,902 shares of the medical equipment provider's stock worth $264,442,000 after acquiring an additional 951,141 shares during the period. Finally, Nuveen LLC acquired a new stake in NovoCure during the 1st quarter worth about $12,363,000. 84.61% of the stock is currently owned by institutional investors and hedge funds.

About NovoCure

NovoCure Limited, an oncology company, engages in the development, manufacture, and commercialization of tumor treating fields (TTFields) devices for the treatment of solid tumor cancers in the United States, Germany, Japan, Greater China, and internationally. The company's TTFields devices include Optune Gio and Optune Lua.