NovoCure (NASDAQ:NVCR) Shares Down 5.3% - Should You Sell?

Key Points

• NovoCure shares fell 5.3% in Monday midday trading, from a previous close of $13.28 to a last trade of $12.575.
• Analysts have a consensus “Hold” rating and an average price target of $20.80; recent target changes included Wells Fargo lowering its target to $15 and Wedbush raising its target to $20.
• The company beat quarterly estimates, reporting a loss of $0.09 per share versus expectations of a $0.23 loss, while revenue reached $193.4 million, up 15.7% year over year.

NovoCure Limited (NASDAQ:NVCR - Get Free Report)'s stock price dropped 5.3% during mid-day trading on Monday. The company traded as low as $12.25 and last traded at $12.5750. Approximately 1,391,651 shares changed hands during trading, a decline of 17% from the average daily volume of 1,681,598 shares. The stock had previously closed at $13.28.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on NVCR shares. Zacks Research upgraded shares of NovoCure from a "strong sell" rating to a "hold" rating in a research note on Friday, July 24th. HC Wainwright set a $32.00 price objective on shares of NovoCure in a research report on Friday, July 24th. Wedbush boosted their price objective on NovoCure from $18.00 to $20.00 and gave the stock a "neutral" rating in a report on Friday, July 24th. Weiss Ratings downgraded NovoCure from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday, October 30th. Finally, Wells Fargo & Company lowered their target price on NovoCure from $20.00 to $15.00 and set an "equal weight" rating on the stock in a research note on Friday, October 30th. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $20.80.

NovoCure Trading Down 4.6%

The firm's 50-day moving average price is $15.40 and its 200 day moving average price is $14.79. The company has a market cap of $1.48 billion, a price-to-earnings ratio of -11.97 and a beta of 1.09. The company has a current ratio of 2.49, a quick ratio of 2.34 and a debt-to-equity ratio of 0.49.

NovoCure (NASDAQ:NVCR - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The medical equipment provider reported ($0.09) EPS for the quarter, topping analysts' consensus estimates of ($0.23) by $0.14. NovoCure had a negative net margin of 16.78% and a negative return on equity of 35.81%. The business had revenue of $193.40 million during the quarter, compared to analysts' expectations of $182.28 million. During the same period last year, the company posted ($0.33) earnings per share. The business's quarterly revenue was up 15.7% on a year-over-year basis. As a group, equities analysts expect that NovoCure Limited will post -1.09 EPS for the current year.

Institutional Investors Weigh In On NovoCure

A number of large investors have recently added to or reduced their stakes in the company. Diversified Trust Co acquired a new stake in shares of NovoCure in the 3rd quarter worth approximately $710,000. Allworth Financial LP raised its holdings in NovoCure by 323.9% during the 3rd quarter. Allworth Financial LP now owns 11,535 shares of the medical equipment provider's stock worth $175,000 after buying an additional 8,814 shares during the period. Russell Investments Group Ltd. boosted its holdings in shares of NovoCure by 7.9% in the third quarter. Russell Investments Group Ltd. now owns 196,874 shares of the medical equipment provider's stock worth $3,140,000 after buying an additional 14,358 shares during the period. Brighton Jones LLC acquired a new position in shares of NovoCure in the third quarter worth about $178,000. Finally, Inscription Capital LLC purchased a new position in shares of NovoCure in the third quarter worth approximately $367,000. Institutional investors own 84.61% of the company's stock.

NovoCure Company Profile

NovoCure Ltd. NASDAQ: NVCR is an oncology company that develops and commercializes therapies based on Tumor Treating Fields (TTFields), low-intensity electric fields designed to disrupt the division of cancer cells. Its treatments are delivered through portable, wearable devices used alongside other cancer therapies.

The company's principal products include Optune Gio for certain adults with glioblastoma and Optune Lua for adults with unresectable, locally advanced or metastatic pleural mesothelioma and certain forms of metastatic non-small cell lung cancer.

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