Novo Nordisk A/S (NYSE:NVO) Stock Rated “Hold” by Wall Street Analysts

Shares of Novo Nordisk A/S (NYSE:NVO) have earned an average recommendation of “Hold” from the twenty-six research firms that are presently covering the company, Marketbeat reports. Five analysts have rated the stock with a sell rating, sixteen have assigned a hold rating and five have given a buy rating to the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $59.44.

NVO has been the topic of several research reports. UBS Group reaffirmed a “neutral” rating on shares of Novo Nordisk A/S in a report on Monday, September 21st. BMO Capital Markets set a $40.00 target price on Novo Nordisk A/S and gave the company a “market perform” rating in a report on Monday, October 12th. DZ Bank reissued a “neutral” rating on shares of Novo Nordisk A/S in a research report on Thursday, August 6th. Citigroup restated a “neutral” rating on shares of Novo Nordisk A/S in a research note on Friday, October 9th. Finally, Deutsche Bank Aktiengesellschaft restated a “sell” rating on shares of Novo Nordisk A/S in a research note on Tuesday, September 29th.

Novo Nordisk A/S Price Performance

Novo Nordisk A/S stock opened at $38.38 on Tuesday. The stock has a market cap of $171.38 billion, a P/E ratio of 9.38, a price-to-earnings-growth ratio of 1.32 and a beta of 0.76. The company has a fifty day simple moving average of $42.51 and a 200-day simple moving average of $43.97. Novo Nordisk A/S has a 12-month low of $35.12 and a 12-month high of $64.16. The company has a current ratio of 0.87, a quick ratio of 0.66 and a debt-to-equity ratio of 0.55.

Novo Nordisk A/S (NYSE:NVO) last posted its earnings results on Tuesday, June 30th. The company reported $0.94 earnings per share for the quarter. The firm had revenue of $11.98 billion during the quarter. Novo Nordisk A/S had a return on equity of 58.61% and a net margin of 35.36%. Equities analysts expect that Novo Nordisk A/S will post 3.42 EPS for the current fiscal year.

Novo Nordisk A/S Cuts Dividend

The business also recently declared a dividend, which was paid on Tuesday, August 25th. Investors of record on Monday, August 17th were given a $0.5786 dividend. This is a drop from Novo Nordisk A/S’s previous dividend of $1.2751. The ex-dividend date was Monday, August 17th. This represents a yield of 258.0%. Novo Nordisk A/S’s payout ratio is presently 20.05%.

More Novo Nordisk A/S News

Here are the key news stories impacting Novo Nordisk A/S this week:

• Positive Sentiment: Share buyback provides support: Novo Nordisk reported further progress on its repurchase program, with purchases exceeding DKK 10.5 billion toward a planned DKK 15 billion program over 12 months. Buybacks can support earnings per share and signal that management views the depressed valuation as attractive. Novo Nordisk A/S share repurchase programme
• Positive Sentiment: Valuation and income appeal: Recent analysis highlights NVO’s relatively low earnings multiple and dividend potential, which could attract value-oriented investors after the stock’s substantial decline. However, this is an analytical view rather than a new company catalyst. Novo Nordisk stock analysis
• Neutral Sentiment: Investors are awaiting the November 4 update: Market attention is focused on Novo Nordisk’s next business update, which may provide guidance on Wegovy demand, competitive conditions, pricing and the impact of the buyback. Novo Nordisk November 4 update
• Negative Sentiment: Insider inactivity weakens the buyback signal: Reports that insiders have remained on the sidelines while the company repurchases shares may make investors more cautious about interpreting the program as a strong near-term confidence signal. Novo Nordisk insiders and buyback
• Negative Sentiment: Rising Eli Lilly competition is the main pressure: An EMA panel backed Lilly’s Foundayo for obesity and type 2 diabetes, increasing competitive risk for Novo Nordisk’s oral Wegovy strategy in Europe. Investors are also concerned about U.S. pricing pressure and slower Wegovy-pill momentum. Novo Nordisk and Lilly GLP-1 competition

Institutional Trading of Novo Nordisk A/S

A number of hedge funds have recently added to or reduced their stakes in NVO. Smithbridge Asset Management Inc. DE raised its stake in shares of Novo Nordisk A/S by 3.9% during the third quarter. Smithbridge Asset Management Inc. DE now owns 106,090 shares of the company’s stock worth $4,022,000 after purchasing an additional 4,021 shares during the last quarter. Columbia Asset Management acquired a new stake in shares of Novo Nordisk A/S during the third quarter worth $386,000. IFP Advisors Inc grew its position in Novo Nordisk A/S by 41.5% in the 3rd quarter. IFP Advisors Inc now owns 42,822 shares of the company’s stock valued at $1,623,000 after buying an additional 12,569 shares during the last quarter. Frank Rimerman Advisors LLC grew its position in Novo Nordisk A/S by 38.0% in the 3rd quarter. Frank Rimerman Advisors LLC now owns 32,088 shares of the company’s stock valued at $1,216,000 after buying an additional 8,830 shares during the last quarter. Finally, RKL Wealth Management LLC grew its position in Novo Nordisk A/S by 0.9% in the 3rd quarter. RKL Wealth Management LLC now owns 51,456 shares of the company’s stock valued at $1,951,000 after buying an additional 444 shares during the last quarter. 11.54% of the stock is owned by institutional investors and hedge funds.

Novo Nordisk A/S Company Profile

Novo Nordisk A/S is a Danish pharmaceutical company headquartered in Bagsværd, Denmark. The company focuses on developing and manufacturing medicines and delivery systems for chronic diseases, with a primary emphasis on diabetes and obesity care.

Novo Nordisk offers a broad portfolio of insulin products, as well as glucagon-like peptide-1 (GLP-1) medicines used in diabetes management and weight treatment. Its well-known products include Ozempic and Rybelsus for type 2 diabetes, Wegovy for chronic weight management, and several modern and human insulin products.