NovoCure (NASDAQ:NVCR) Shares Down 4% - What's Next?

Key Points

• NovoCure shares fell 4% to about $17.06 on Friday, on trading volume 72% below the stock’s average daily volume.
• Analysts maintain a generally cautious outlook: the consensus rating is “Hold” with a $21.20 price target, although individual firms range from “Sell” to “Outperform.”
• The company exceeded quarterly expectations, reporting an adjusted loss of $0.13 per share versus the expected $0.33 loss and revenue of $183.58 million, up 15.6% year over year; however, it remains unprofitable with a negative net margin and return on equity.

NovoCure Limited (NASDAQ:NVCR - Get Free Report) shares dropped 4% during trading on Friday . The stock traded as low as $17.03 and last traded at $17.06. 494,898 shares changed hands during trading, a decline of 72% from the average daily volume of 1,747,727 shares. The stock had previously closed at $17.77.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Zacks Research upgraded NovoCure from a "strong sell" rating to a "hold" rating in a report on Friday, July 24th. HC Wainwright set a $32.00 price objective on shares of NovoCure in a research note on Friday, July 24th. Wells Fargo & Company lifted their price objective on NovoCure from $13.50 to $17.00 and gave the company an "equal weight" rating in a research note on Monday, May 4th. Evercore reaffirmed an "outperform" rating on shares of NovoCure in a report on Friday, May 1st. Finally, Weiss Ratings raised shares of NovoCure from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Monday, June 1st. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $21.20.

NovoCure Price Performance

The company has a quick ratio of 2.70, a current ratio of 2.89 and a debt-to-equity ratio of 0.58. The firm has a market capitalization of $1.99 billion, a price-to-earnings ratio of -13.16 and a beta of 0.97. The company has a fifty day moving average price of $16.40 and a two-hundred day moving average price of $14.55.

NovoCure (NASDAQ:NVCR - Get Free Report) last released its quarterly earnings results 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 the consensus estimate of $172.44 million. During the same quarter in the prior year, the firm earned ($0.36) EPS. NovoCure's revenue for the quarter was up 15.6% on a year-over-year basis. On average, equities research analysts expect that NovoCure Limited will post -1.21 EPS for the current fiscal year.

Insider Activity

In other news, Director W Anthony Vernon sold 2,945 shares of NovoCure stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $15.77, for a total value of $46,442.65. Following the sale, the director owned 197,657 shares of the company's stock, valued at $3,117,050.89. The trade was a 1.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 business's 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 owned 11,324 shares in the company, valued at approximately $178,579.48. This trade represents a 20.64% decrease in their ownership of the stock. 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. Over the last quarter, insiders sold 51,943 shares of company stock valued at $893,171. 6.55% of the stock is currently owned by company insiders.

Institutional Trading of NovoCure

A number of institutional investors have recently added to or reduced their stakes in the stock. AQR Capital Management LLC grew its holdings in NovoCure by 56.7% in the first quarter. AQR Capital Management LLC now owns 28,728 shares of the medical equipment provider's stock valued at $512,000 after purchasing an additional 10,394 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of NovoCure by 3.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 74,992 shares of the medical equipment provider's stock valued at $1,336,000 after purchasing an additional 2,502 shares in the last quarter. Goldman Sachs Group Inc. raised its position in shares of NovoCure by 5.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 993,670 shares of the medical equipment provider's stock worth $17,707,000 after purchasing an additional 52,180 shares during the last quarter. Acadian Asset Management LLC purchased a new stake in NovoCure in the 1st quarter valued at approximately $87,000. Finally, Prudential Financial Inc. purchased a new stake in NovoCure during the 2nd quarter worth about $216,000. Hedge funds and other institutional investors 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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