NovoCure (NASDAQ:NVCR) Shares Down 5.3% - Here's What Happened

Key Points

• NovoCure's stock fell by 5.3% during Monday's trading, closing at $11.77 down from a previous close of $12.43, with a significant drop in trading volume.
• Several analysts have revised their price targets for NVCR, with Wells Fargo lowering its target to $14.50 from $40.00, while Piper Sandler maintains a $34.00 target.
• The company reported a quarterly earnings per share (EPS) of ($0.36), which surpassed analysts' expectations and indicated a revenue increase of 5.6% year-over-year.

NovoCure Limited (NASDAQ:NVCR - Get Free Report) fell 5.3% during trading on Monday . The stock traded as low as $11.65 and last traded at $11.77. 684,341 shares traded hands during mid-day trading, a decline of 44% from the average session volume of 1,214,130 shares. The stock had previously closed at $12.43.

Wall Street Analysts Forecast Growth

Several research firms recently commented on NVCR. Wells Fargo & Company reiterated an "equal weight" rating and issued a $14.50 price objective (down from $40.00) on shares of NovoCure in a report on Friday, July 25th. Piper Sandler reaffirmed an "overweight" rating and set a $34.00 price objective on shares of NovoCure in a research report on Friday, June 27th. Finally, LADENBURG THALM/SH SH began coverage on NovoCure in a research report on Tuesday, July 8th. They set a "buy" rating and a $30.00 price objective on the stock. Four research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $28.79.

NovoCure Price Performance

The firm has a 50 day moving average of $14.75 and a 200-day moving average of $17.21. The company has a market cap of $1.31 billion, a P/E ratio of -7.50 and a beta of 0.61. The company has a current ratio of 1.45, a quick ratio of 1.39 and a debt-to-equity ratio of 0.28.

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 (EPS) for the quarter, topping 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 business had revenue of $158.80 million for the quarter, compared to the consensus estimate of $153.87 million. During the same quarter in the previous year, the company posted ($0.31) EPS. The company's revenue was up 5.6% compared to the same quarter last year. On average, equities research analysts predict that NovoCure Limited will post -1.3 EPS for the current year.

Insider Transactions at NovoCure

In other news, CFO Christoph Brackmann acquired 20,000 shares of NovoCure stock in a transaction on Tuesday, July 29th. The shares were acquired at an average price of $11.59 per share, with a total value of $231,800.00. Following the purchase, the chief financial officer directly owned 141,150 shares in the company, valued at $1,635,928.50. The trade was a 16.51% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 5.52% of the stock is currently owned by insiders.

Hedge Funds Weigh In On NovoCure

Large investors have recently modified their holdings of the stock. GeoWealth Management LLC bought a new position in shares of NovoCure during the 4th quarter valued at approximately $27,000. GF Fund Management CO. LTD. purchased a new position in NovoCure during the 4th quarter valued at $68,000. Mirae Asset Global Investments Co. Ltd. boosted its holdings in NovoCure by 17.1% during the 2nd quarter. Mirae Asset Global Investments Co. Ltd. now owns 4,307 shares of the medical equipment provider's stock valued at $77,000 after acquiring an additional 629 shares during the period. Headlands Technologies LLC purchased a new position in NovoCure during the 2nd quarter valued at $88,000. Finally, Acadian Asset Management LLC purchased a new position in NovoCure during the 1st quarter valued at $87,000. Institutional investors own 84.61% of the company's stock.

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.

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