NovoCure (NASDAQ:NVCR) Shares Down 5.6% - What's Next?

Key Points

• NovoCure's stock price fell by 5.6% to $11.84, following a decline in trading volume of 52% compared to its average.
• A mix of analyst ratings showed a consensus "Hold" rating with a target price of $28.79, with some analysts recommending a "buy" and others a "sell."
• The company's last earnings report revealed a loss per share of ($0.36), exceeding expectations, and revenue growth of 5.6% year-over-year.
• Approximately 84.61% of NovoCure's stock is owned by institutional investors, indicating strong institutional interest.

NovoCure Limited (NASDAQ:NVCR - Get Free Report)'s stock price was down 5.6% on Friday . The stock traded as low as $11.93 and last traded at $11.84. Approximately 517,908 shares traded hands during mid-day trading, a decline of 52% from the average daily volume of 1,088,380 shares. The stock had previously closed at $12.54.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on NVCR shares. JPMorgan Chase & Co. lowered their target price on shares of NovoCure from $29.00 to $28.00 and set a "neutral" rating on the stock in a report on Thursday, April 10th. Wall Street Zen cut shares of NovoCure from a "hold" rating to a "sell" rating in a research note on Friday, April 25th. LADENBURG THALM/SH SH assumed coverage on shares of NovoCure in a research note on Tuesday, July 8th. They issued a "buy" rating and a $30.00 price objective for the company. Wedbush reduced their price objective on shares of NovoCure from $29.00 to $27.00 and set a "neutral" rating for the company in a research note on Wednesday, April 16th. Finally, Wells Fargo & Company reiterated an "equal weight" rating and issued a $14.50 price objective (down previously from $40.00) on shares of NovoCure in a research note on Friday. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $28.79.

NovoCure Trading Down 2.2%

The company has a debt-to-equity ratio of 0.28, a current ratio of 1.45 and a quick ratio of 1.39. The company has a market cap of $1.27 billion, a price-to-earnings ratio of -7.29 and a beta of 0.72. The business's 50-day simple moving average is $17.16 and its 200-day simple moving average is $19.07.

NovoCure (NASDAQ:NVCR - Get Free Report) last announced its earnings results 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. The company had revenue of $158.80 million during the quarter, compared to analysts' expectations of $153.87 million. NovoCure had a negative net margin of 27.13% and a negative return on equity of 47.74%. The firm's quarterly revenue was up 5.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.31) earnings per share. Research analysts predict that NovoCure Limited will post -1.3 earnings per share for the current fiscal year.

Hedge Funds Weigh In On NovoCure

A number of institutional investors have recently modified their holdings of the company. Chicago Partners Investment Group LLC acquired a new position in shares of NovoCure in the second quarter valued at approximately $263,000. KLP Kapitalforvaltning AS raised its position in shares of NovoCure by 6.5% in the second quarter. KLP Kapitalforvaltning AS now owns 23,000 shares of the medical equipment provider's stock valued at $409,000 after buying an additional 1,400 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. raised its position in shares of 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 buying an additional 629 shares during the last quarter. Washington Capital Management Inc. acquired a new position in shares of NovoCure in the second quarter valued at approximately $374,000. Finally, Kera Capital Partners Inc. raised its position in shares of NovoCure by 22.6% in the second quarter. Kera Capital Partners Inc. now owns 13,319 shares of the medical equipment provider's stock valued at $237,000 after buying an additional 2,453 shares during the last quarter. Institutional investors and hedge funds 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.