NovoCure (NASDAQ:NVCR) Rating Increased to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded NovoCure to “Buy” from “Hold”, although the broader analyst consensus remains “Hold” with an average price target of $21.20.
• NovoCure’s latest quarter exceeded expectations: adjusted EPS was a loss of $0.13 versus the anticipated $0.33 loss, while revenue rose 15.6% year over year to $183.58 million.
• The stock opened at $16.39 after rising 4.5%; institutional investors own a substantial 84.61% of shares, while insiders have sold $893,171 worth of stock over the past 90 days, primarily to cover tax obligations.

NovoCure (NASDAQ:NVCR - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Saturday.

Several other research firms have also weighed in on NVCR. Wedbush increased their price target on shares of NovoCure from $18.00 to $20.00 and gave the company a "neutral" rating in a research report on Friday, July 24th. Evercore restated an "outperform" rating on shares of NovoCure in a research note on Friday, May 1st. HC Wainwright set a $32.00 price target on NovoCure in a research report on Friday, July 24th. Zacks Research raised NovoCure from a "strong sell" rating to a "hold" rating in a report on Friday, July 24th. Finally, Weiss Ratings upgraded NovoCure from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Monday, June 1st. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $21.20.

NovoCure Stock Up 4.5%

NovoCure stock opened at $16.39 on Friday. NovoCure has a fifty-two week low of $9.82 and a fifty-two week high of $21.45. The stock has a market cap of $1.91 billion, a PE ratio of -12.61 and a beta of 0.97. The firm's 50-day simple moving average is $16.29 and its 200 day simple moving average is $14.26. The company has a debt-to-equity ratio of 0.58, a quick ratio of 2.70 and a current ratio of 2.89.

NovoCure (NASDAQ:NVCR - Get Free Report) last posted its quarterly earnings data on Thursday, July 23rd. The medical equipment provider reported ($0.13) EPS for the quarter, beating the consensus estimate 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 firm had revenue of $183.58 million during the quarter, compared to analyst estimates of $172.44 million. During the same quarter last year, the business posted ($0.36) EPS. The company's revenue for the quarter was up 15.6% on a year-over-year basis. Research analysts predict that NovoCure will post -1.21 EPS for the current fiscal year.

Insider Buying and Selling at NovoCure

In other news, Director Jeryl L. Hilleman sold 2,945 shares of the company's stock in a transaction 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 transaction, the director owned 13,861 shares of the company's stock, valued at approximately $218,587.97. This represents a 17.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed 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 stock in a transaction on Tuesday, June 2nd. The stock was 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 in the company, valued at $178,579.48. This trade represents a 20.64% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 51,943 shares of company stock worth $893,171 in the last ninety days. Insiders own 6.55% of the company's stock.

Institutional Trading of NovoCure

Several institutional investors and hedge funds have recently modified their holdings of NVCR. Morgan Stanley raised its stake in NovoCure by 453.4% in the fourth quarter. Morgan Stanley now owns 5,069,895 shares of the medical equipment provider's stock valued at $65,554,000 after purchasing an additional 4,153,741 shares in the last quarter. Soleus Capital Management L.P. increased its holdings in shares of NovoCure by 25.0% in the 2nd quarter. Soleus Capital Management L.P. now owns 6,904,302 shares of the medical equipment provider's stock worth $122,897,000 after buying an additional 1,382,888 shares during the last quarter. Jacobs Levy Equity Management Inc. raised its position in shares of NovoCure by 1,093.2% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,223,755 shares of the medical equipment provider's stock valued at $15,823,000 after buying an additional 1,121,192 shares in the last quarter. SG Americas Securities LLC lifted its holdings in shares of NovoCure by 346.7% during the 1st quarter. SG Americas Securities LLC now owns 1,245,541 shares of the medical equipment provider's stock worth $13,576,000 after acquiring an additional 966,735 shares during the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund purchased a new position in NovoCure in the fourth quarter worth $11,991,000. Hedge funds and other institutional investors own 84.61% of the company's stock.

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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