NovoCure (NASDAQ:NVCR) Shares Gap Down - Time to Sell?

Key Points

• NovoCure shares gapped down from a previous close of $14.17 to an opening price of $12.61, later trading near $12.83.
• Analyst sentiment is mixed but leans neutral: the stock has an average “Hold” rating and a consensus price target of $21.20, with targets ranging from $17 to $32 and one “Sell” rating.
• NovoCure exceeded quarterly expectations, reporting an adjusted loss of $0.09 per share versus the expected $0.23 loss and revenue of $193.4 million, up 15.7% year over year. However, the company remains unprofitable, with a negative net margin and analysts expecting a full-year loss.

NovoCure Limited (NASDAQ:NVCR - Get Free Report)'s share price gapped down prior to trading on Thursday. The stock had previously closed at $14.17, but opened at $12.61. NovoCure shares last traded at $12.8290, with a volume of 886,653 shares.

Analyst Upgrades and Downgrades

NVCR has been the subject of several recent research reports. HC Wainwright set a $32.00 price target on NovoCure in a report on Friday, July 24th. JPMorgan Chase & Co. began coverage on NovoCure in a research note on Monday, July 13th. They set a "neutral" rating and a $17.00 price objective on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of NovoCure in a research note on Thursday, August 27th. Zacks Research raised shares of NovoCure from a "strong sell" rating to a "hold" rating in a report on Friday, July 24th. Finally, Wall Street Zen lowered shares of NovoCure from a "buy" rating to a "hold" rating in a research note on Saturday, October 10th. Two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $21.20.

NovoCure Stock Performance

The company's 50-day simple moving average is $15.98 and its 200 day simple moving average is $14.80. The stock has a market cap of $1.54 billion, a P/E ratio of -10.21 and a beta of 0.99. The company has a current ratio of 2.89, a quick ratio of 2.70 and a debt-to-equity ratio of 0.58.

NovoCure (NASDAQ:NVCR - Get Free Report) last released its earnings results on Thursday, October 29th. The medical equipment provider reported ($0.09) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.23) by $0.14. The company had revenue of $193.40 million during the quarter, compared to analyst estimates of $182.28 million. NovoCure had a negative return on equity of 44.00% and a negative net margin of 21.25%. NovoCure's quarterly revenue was up 15.7% on a year-over-year basis. During the same period in the prior year, the company posted ($0.33) earnings per share. As a group, sell-side analysts expect that NovoCure Limited will post -1.21 EPS for the current fiscal year.

Hedge Funds Weigh In On NovoCure

A number of hedge funds and other institutional investors have recently made changes to their positions in NVCR. Sei Investments Co. grew its holdings in NovoCure by 367.6% during the first quarter. Sei Investments Co. now owns 114,281 shares of the medical equipment provider's stock valued at $1,246,000 after purchasing an additional 89,839 shares during the period. First Trust Advisors LP purchased a new stake in NovoCure in the first quarter worth $1,028,000. Dimensional Fund Advisors LP raised its stake in shares of NovoCure by 27.6% in the first 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. Quantinno Capital Management LP raised its stake in shares of NovoCure by 23.7% in the first 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 period. Finally, Allianz Asset Management GmbH purchased a new position in shares of NovoCure during the 2nd quarter valued at $2,248,000. 84.61% of the stock is owned by hedge funds and other institutional investors.

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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