NovoCure (NASDAQ:NVCR) Reaches New 12-Month Low - What's Next?

Key Points

• NovoCure (NASDAQ:NVCR) shares have hit a new 52-week low, trading as low as $11.25, with analyst reports issuing mixed ratings and price targets ranging from $14.50 to $34.00.
• The company recently reported quarterly earnings, beating analyst expectations with $158.80 million in revenue but showing a negative earnings per share of ($0.36).
• Institutional investors appear to be increasing their stakes in NovoCure, with ownership by institutional investors now at 84.61%.

NovoCure Limited (NASDAQ:NVCR - Get Free Report)'s stock price reached a new 52-week low during trading on Wednesday . The stock traded as low as $11.25 and last traded at $11.35, with a volume of 310097 shares. The stock had previously closed at $11.38.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the stock. Piper Sandler reissued an "overweight" rating and set a $34.00 price objective on shares of NovoCure in a research note on Friday, June 27th. JPMorgan Chase & Co. decreased their target price on shares of NovoCure from $29.00 to $28.00 and set a "neutral" rating for the company in a report on Thursday, April 10th. Wells Fargo & Company reaffirmed an "equal weight" rating and issued a $14.50 target price (down from $40.00) on shares of NovoCure in a report on Friday, July 25th. Wedbush decreased their target price on shares of NovoCure from $29.00 to $27.00 and set a "neutral" rating for the company in a report on Wednesday, April 16th. Finally, LADENBURG THALM/SH SH began coverage on shares of NovoCure in a report on Tuesday, July 8th. They issued a "buy" rating and a $30.00 target price for the company. One analyst has rated the stock with a sell rating, three have given a hold rating and four have issued a buy rating to the company's stock. Based on data from MarketBeat, NovoCure has an average rating of "Hold" and an average price target of $28.79.

NovoCure Price Performance

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's fifty day moving average price is $16.61 and its two-hundred day moving average price is $18.70. The stock has a market capitalization of $1.27 billion, a PE ratio of -7.26 and a beta of 0.61.

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

Insider Buying and Selling at NovoCure

In related news, CFO Christoph Brackmann acquired 20,000 shares of the firm's stock in a transaction dated Tuesday, July 29th. The stock was purchased at an average cost of $11.59 per share, with a total value of $231,800.00. Following the completion of the acquisition, the chief financial officer directly owned 141,150 shares of the company's stock, valued at approximately $1,635,928.50. This trade represents a 16.51% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. 5.52% of the stock is owned by insiders.

Institutional Trading of NovoCure

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. GeoWealth Management LLC purchased a new stake in NovoCure during the fourth quarter valued at approximately $27,000. GF Fund Management CO. LTD. purchased a new stake in NovoCure during the fourth quarter valued at approximately $68,000. Mirae Asset Global Investments Co. Ltd. increased its holdings in NovoCure by 17.1% during the second quarter. Mirae Asset Global Investments Co. Ltd. now owns 4,307 shares of the medical equipment provider's stock valued at $77,000 after buying an additional 629 shares during the last quarter. Acadian Asset Management LLC purchased a new stake in NovoCure during the first quarter valued at approximately $87,000. Finally, Russell Investments Group Ltd. increased its holdings in NovoCure by 463.8% during the first quarter. Russell Investments Group Ltd. now owns 6,529 shares of the medical equipment provider's stock valued at $116,000 after buying an additional 5,371 shares during the last quarter. 84.61% of the stock is owned by hedge funds and other institutional investors.

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.