Zacks Research Downgrades NovoCure (NASDAQ:NVCR) to Strong Sell

NovoCure (NASDAQ:NVCR) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Tuesday,Zacks.com reports.

NVCR has been the topic of a number of other reports. Weiss Ratings upgraded NovoCure from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Monday, June 1st. Wedbush restated a “neutral” rating and set a $18.00 target price on shares of NovoCure in a research note on Thursday, April 16th. HC Wainwright reaffirmed a “buy” rating and issued a $46.00 target price (down from $48.00) on shares of NovoCure in a report on Thursday, June 18th. Wells Fargo & Company raised their target price on NovoCure from $13.50 to $17.00 and gave the company an “equal weight” rating in a report on Monday, May 4th. Finally, Evercore reaffirmed an “outperform” rating on shares of NovoCure in a research report on Friday, May 1st. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $23.60.

NovoCure Stock Up 3.1%

Shares of NovoCure stock opened at $16.03 on Tuesday. NovoCure has a 12-month low of $9.82 and a 12-month high of $18.92. The company has a quick ratio of 2.70, a current ratio of 2.90 and a debt-to-equity ratio of 0.71. The stock has a 50 day moving average price of $16.79 and a two-hundred day moving average price of $13.97. The stock has a market capitalization of $1.86 billion, a P/E ratio of -10.48 and a beta of 0.94.

NovoCure (NASDAQ:NVCR) last posted its quarterly earnings data on Thursday, April 30th. The medical equipment provider reported ($0.62) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.51) by ($0.11). The firm had revenue of $174.06 million for the quarter, compared to the consensus estimate of $167.77 million. NovoCure had a negative return on equity of 50.82% and a negative net margin of 25.66%.NovoCure’s quarterly revenue was up 12.3% on a year-over-year basis. During the same period in the prior year, the company posted ($0.31) earnings per share. Equities analysts expect that NovoCure will post -1.51 earnings per share for the current year.

Insider Activity at NovoCure

In related news, Director Timothy J. Scannell sold 2,945 shares of the stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $15.77, for a total value of $46,442.65. Following the completion of the sale, the director owned 14,288 shares in the company, valued at approximately $225,321.76. This trade represents a 17.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jeryl L. Hilleman sold 2,945 shares of NovoCure stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $15.77, for a total value of $46,442.65. Following the sale, the director directly owned 13,861 shares in the company, valued at approximately $218,587.97. This trade represents a 17.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 51,943 shares of company stock worth $893,171. Insiders own 5.52% of the company’s stock.

Institutional Trading of NovoCure

Several institutional investors have recently modified their holdings of NVCR. Handelsbanken Fonder AB increased its position in shares of NovoCure by 37.2% during the second quarter. Handelsbanken Fonder AB now owns 51,223 shares of the medical equipment provider’s stock valued at $776,000 after purchasing an additional 13,900 shares during the period. Amundi raised its stake in shares of NovoCure by 19.9% in the first quarter. Amundi now owns 47,583 shares of the medical equipment provider’s stock valued at $519,000 after purchasing an additional 7,907 shares in the last quarter. California State Teachers Retirement System raised its stake in shares of NovoCure by 43.6% in the first quarter. California State Teachers Retirement System now owns 142,561 shares of the medical equipment provider’s stock valued at $1,554,000 after purchasing an additional 43,257 shares in the last quarter. Eversept Partners LP lifted its position in NovoCure by 11.5% in the first quarter. Eversept Partners LP now owns 134,917 shares of the medical equipment provider’s stock worth $1,471,000 after purchasing an additional 13,939 shares during the period. Finally, Quantinno Capital Management LP lifted its position in 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 worth $27,112,000 after purchasing an additional 477,128 shares during the period. Institutional investors and hedge funds own 84.61% of the company’s stock.

NovoCure Company Profile

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.