NovoCure (NASDAQ:NVCR) Shares Gap Up Following Insider Buying Activity

Key Points

• NovoCure's CEO Ashley Cordova purchased 81,550 shares on September 5th at $12.22 each, marking a 22.91% increase in her ownership.
• The company's stock opened significantly higher, from a previous close of $12.28 to $13.65, and last traded at $13.03, indicating a 4.9% increase in value.
• Equities research analysts largely favor NovoCure, with an average target price of $28.79 and multiple ratings of "Buy" and "Hold".

NovoCure Limited (NASDAQ:NVCR - Get Free Report)'s share price gapped up prior to trading on Monday after an insider bought additional shares in the company. The stock had previously closed at $12.28, but opened at $13.65. NovoCure shares last traded at $13.03, with a volume of 543,802 shares traded.

Specifically, CEO Ashley Cordova acquired 81,550 shares of the stock in a transaction on Friday, September 5th. The stock was acquired at an average cost of $12.22 per share, for a total transaction of $996,541.00. Following the completion of the transaction, the chief executive officer directly owned 437,569 shares in the company, valued at approximately $5,347,093.18. This trade represents a 22.91% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website.

Wall Street Analyst Weigh In

NVCR has been the subject of several research analyst reports. Wells Fargo & Company restated an "equal weight" rating and set a $14.50 price objective (down from $40.00) on shares of NovoCure in a research report on Friday, July 25th. Piper Sandler restated 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 initiated coverage on shares of NovoCure in a research report on Tuesday, July 8th. They set a "buy" rating and a $30.00 price objective for the company. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $28.79.

NovoCure Stock Down 4.6%

The firm's fifty day moving average price is $13.20 and its 200-day moving average price is $16.28. The company has a market capitalization of $1.36 billion, a price-to-earnings ratio of -7.79 and a beta of 0.58. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.45 and a quick ratio of 1.39.

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

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. GF Fund Management CO. LTD. acquired a new position in shares of NovoCure during the fourth quarter worth $68,000. Mirae Asset Global Investments Co. Ltd. increased its holdings in NovoCure by 17.1% in 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 purchasing an additional 629 shares during the period. Acadian Asset Management LLC acquired a new stake in NovoCure in the first quarter valued at $87,000. Headlands Technologies LLC acquired a new position in NovoCure during the 2nd quarter worth about $88,000. Finally, Russell Investments Group Ltd. grew its position in shares of NovoCure by 463.8% in the 1st 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 currently owned by institutional investors and hedge funds.

NovoCure Company Profile

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.