NovoCure (NASDAQ:NVCR) Shares Gap Down Following Weak Earnings

NovoCure Limited (NASDAQ:NVCR)’s stock price gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $21.96, but opened at $20.12. NovoCure shares last traded at $19.94, with a volume of 314,591 shares traded.

The medical equipment provider reported ($0.61) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.34) by ($0.27). The business had revenue of $161.27 million for the quarter, compared to analysts’ expectations of $161.30 million. NovoCure had a negative net margin of 25.93% and a negative return on equity of 41.48%.

Analyst Ratings Changes

Several analysts have issued reports on the stock. Evercore ISI raised shares of NovoCure from an “in-line” rating to an “outperform” rating and raised their price objective for the stock from $18.00 to $30.00 in a research note on Monday, December 2nd. Wedbush reaffirmed a “neutral” rating and issued a $29.00 price objective on shares of NovoCure in a research note on Monday, January 13th. Piper Sandler increased their target price on NovoCure from $28.00 to $42.00 and gave the company an “overweight” rating in a research report on Friday, December 13th. Finally, HC Wainwright reaffirmed a “buy” rating and issued a $38.00 price objective on shares of NovoCure in a research report on Tuesday, January 14th. Two equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, NovoCure presently has an average rating of “Moderate Buy” and an average price target of $32.67.

Institutional Investors Weigh In On NovoCure

A number of large investors have recently bought and sold shares of NVCR. FMR LLC boosted its stake in shares of NovoCure by 0.6% in the third quarter. FMR LLC now owns 16,232,008 shares of the medical equipment provider’s stock worth $253,706,000 after buying an additional 90,422 shares during the last quarter. Capital International Investors boosted its stake in shares of NovoCure by 12.0% in the fourth quarter. Capital International Investors now owns 8,873,902 shares of the medical equipment provider’s stock worth $264,442,000 after acquiring an additional 951,141 shares during the last quarter. Capital World Investors grew its holdings in shares of NovoCure by 11.8% during the fourth quarter. Capital World Investors now owns 4,815,529 shares of the medical equipment provider’s stock worth $143,503,000 after buying an additional 507,311 shares in the last quarter. Nordwand Advisors LLC grew its stake in NovoCure by 100.0% during the 3rd quarter. Nordwand Advisors LLC now owns 3,029,824 shares of the medical equipment provider’s stock valued at $47,356,000 after acquiring an additional 1,514,824 shares in the last quarter. Finally, Soleus Capital Management L.P. purchased a new stake in shares of NovoCure in the fourth quarter valued at approximately $81,643,000. Hedge funds and other institutional investors own 84.61% of the company’s stock.

NovoCure Trading Down 12.4 %

The company has a fifty day simple moving average of $25.81 and a 200-day simple moving average of $21.41. The company has a current ratio of 1.49, a quick ratio of 1.44 and a debt-to-equity ratio of 0.27. The company has a market capitalization of $2.08 billion, a PE ratio of -13.74 and a beta of 0.62.

NovoCure Company Profile

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.