NovoCure (NASDAQ:NVCR) Shares Down 5.4% - Should You Sell?

Key Points

• NovoCure shares fell 5.4% to about $15.06 in mid-day trading, with volume 42% below the average.
• Analyst sentiment is mostly neutral: two analysts rate the stock Buy, four Hold, and one Sell. The consensus rating is Hold, with a $21.20 price target.
• NovoCure exceeded quarterly expectations, reporting a loss of $0.13 per share versus the anticipated $0.33 loss and revenue of $183.58 million, up 15.6% year over year. However, the company remains unprofitable, with a negative 21.25% net margin.

NovoCure Limited (NASDAQ:NVCR - Get Free Report)'s stock price was down 5.4% during mid-day trading on Friday. The stock traded as low as $15.07 and last traded at $15.06. 954,821 shares traded hands during trading, a decline of 42% from the average daily volume of 1,649,382 shares. The stock had previously closed at $15.92.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the company. Zacks Research raised NovoCure from a "strong sell" rating to a "hold" rating in a report on Friday, July 24th. JPMorgan Chase & Co. started coverage on NovoCure in a research report on Monday, July 13th. They set a "neutral" rating and a $17.00 price target on the stock. HC Wainwright set a $32.00 price target on shares of NovoCure in a report on Friday, July 24th. Wedbush raised their price objective on shares of NovoCure from $18.00 to $20.00 and gave the company a "neutral" rating in a research report on Friday, July 24th. Finally, Wall Street Zen lowered shares of NovoCure from a "buy" rating to a "hold" rating in a report on Saturday, August 29th. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $21.20.

NovoCure Stock Performance

The firm has a market capitalization of $1.75 billion, a PE ratio of -11.58 and a beta of 0.99. 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 company has a 50-day moving average of $16.71 and a 200 day moving average of $15.54.

NovoCure (NASDAQ:NVCR - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The medical equipment provider reported ($0.13) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.33) by $0.20. The firm had revenue of $183.58 million during the quarter, compared to the consensus estimate of $172.44 million. NovoCure had a negative return on equity of 44.00% and a negative net margin of 21.25%.The company's revenue for the quarter was up 15.6% on a year-over-year basis. During the same quarter last year, the company posted ($0.36) EPS. Equities research analysts predict that NovoCure Limited will post -1.21 EPS for the current year.

Institutional Trading of NovoCure

A number of hedge funds have recently made changes to their positions in NVCR. SG Americas Securities LLC grew its holdings in shares of NovoCure by 346.7% in the first quarter. SG Americas Securities LLC now owns 1,245,541 shares of the medical equipment provider's stock worth $13,576,000 after purchasing an additional 966,735 shares during the last quarter. Quantinno Capital Management LP raised its holdings in NovoCure by 23.7% during the 1st quarter. Quantinno Capital Management LP now owns 2,487,376 shares of the medical equipment provider's stock valued at $27,112,000 after buying an additional 477,128 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in NovoCure by 27.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 960,056 shares of the medical equipment provider's stock valued at $10,462,000 after buying an additional 207,913 shares during the period. Renaissance Technologies LLC boosted its position in NovoCure by 11.8% during the 1st quarter. Renaissance Technologies LLC now owns 1,551,554 shares of the medical equipment provider's stock valued at $16,912,000 after buying an additional 163,800 shares during the period. Finally, Legal & General Group Plc grew its holdings in NovoCure by 65.6% in the 4th quarter. Legal & General Group Plc now owns 406,664 shares of the medical equipment provider's stock worth $5,258,000 after acquiring an additional 161,095 shares during the last quarter. 84.61% of the stock is owned by institutional investors.

About NovoCure

NovoCure Ltd. NASDAQ: NVCR is an oncology company focused on developing and commercializing Tumor Treating Fields (TTFields), a non-invasive cancer treatment that uses low-intensity alternating electric fields to disrupt the division of tumor cells. The company's technology is designed to be delivered through wearable systems that generate fields at specific frequencies and intensities.

NovoCure's primary products include Optune Gio, marketed in the United States for certain adults with glioblastoma, and Optune Lua, approved in the United States for use with standard chemotherapy in adults with unresectable, locally advanced or metastatic malignant pleural mesothelioma.

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