NovoCure (NASDAQ:NVCR) Trading Down 7.5% - Here's What Happened

Key Points

• NovoCure shares fell 7.5% to $16.60 in Tuesday trading, reaching an intraday low of $17.06 on volume well below the stock’s average.
• Analysts remain broadly cautious, with a consensus “Hold” rating and an average price target of $21.20; ratings include two Buys, four Holds, and one Sell.
• The company’s latest quarterly results exceeded expectations, reporting an adjusted loss of $0.13 per share versus estimates of $0.33 and revenue of $183.58 million, up 15.6% year over year.

NovoCure Limited (NASDAQ:NVCR - Get Free Report) dropped 7.5% during trading on Tuesday . The company traded as low as $17.06 and last traded at $16.60. Approximately 400,337 shares changed hands during mid-day trading, a decline of 76% from the average session volume of 1,699,297 shares. The stock had previously closed at $17.94.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of NovoCure in a report on Thursday, August 27th. HC Wainwright set a $32.00 price objective on shares of NovoCure in a research note on Friday, July 24th. Wedbush lifted their target price on shares of NovoCure from $18.00 to $20.00 and gave the stock a "neutral" rating in a research report on Friday, July 24th. Zacks Research upgraded NovoCure from a "strong sell" rating to a "hold" rating in a research note on Friday, July 24th. Finally, 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 for the company. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $21.20.

NovoCure Price Performance

The business's fifty day moving average is $16.88 and its 200-day moving average is $15.10. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.89 and a quick ratio of 2.70. The firm has a market cap of $1.94 billion, a PE ratio of -12.83 and a beta of 1.01.

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

Institutional Trading of NovoCure

A number of large investors have recently bought and sold shares of the company. First Bancorp Inc ME purchased a new position in shares of NovoCure during the 2nd quarter valued at $38,000. Empowered Funds LLC bought a new stake in NovoCure in the 4th quarter valued at about $33,000. Kestra Advisory Services LLC purchased a new stake in NovoCure during the fourth quarter valued at about $49,000. Larson Financial Group LLC boosted its position in NovoCure by 662.1% during the third quarter. Larson Financial Group LLC now owns 4,100 shares of the medical equipment provider's stock worth $53,000 after purchasing an additional 3,562 shares during the period. Finally, Headlands Technologies LLC bought a new position in NovoCure during the second quarter worth about $88,000. 84.61% of the stock is owned by hedge funds and other institutional investors.

About NovoCure

NovoCure is a global oncology company pioneering Tumor Treating Fields (TTFields), a novel anti-mitotic therapy for solid tumors. The company's non-invasive treatment platforms deliver low-intensity, alternating electric fields designed to disrupt cancer cell division. NovoCure's approach offers an alternative modality to complement existing therapies in oncology, with a focus on hard-to-treat malignancies.

Founded in 2000 and headquartered in Haifa, Israel, NovoCure maintains a second operational center in Portsmouth, New Hampshire.

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