Novo Nordisk A/S (NYSE:NVO) Receives Average Rating of “Hold” from Brokerages

Novo Nordisk A/S (NYSE:NVO) has been assigned a consensus recommendation of “Hold” from the eighteen research firms that are presently covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, fourteen have issued a hold recommendation and three have issued a buy recommendation on the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $64.94.

Several research analysts have recently issued reports on the company. Berenberg Bank set a $47.00 price objective on Novo Nordisk A/S in a research note on Wednesday, August 12th. Wall Street Zen lowered Novo Nordisk A/S from a “buy” rating to a “hold” rating in a research report on Saturday, June 20th. Weiss Ratings upgraded shares of Novo Nordisk A/S from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft lowered shares of Novo Nordisk A/S from a “hold” rating to a “sell” rating in a research report on Thursday, August 27th. Finally, HSBC reaffirmed a “hold” rating on shares of Novo Nordisk A/S in a report on Thursday, September 10th.

Institutional Investors Weigh In On Novo Nordisk A/S

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Godfrey Financial Associates Inc. purchased a new position in shares of Novo Nordisk A/S during the 4th quarter valued at about $25,000. Scarborough Advisors LLC acquired a new position in shares of Novo Nordisk A/S in the 1st quarter valued at about $26,000. Continuum Advisory LLC purchased a new stake in shares of Novo Nordisk A/S in the second quarter worth about $38,000. Markowski Investments purchased a new stake in shares of Novo Nordisk A/S in the second quarter worth about $43,000. Finally, Cassaday & Co Wealth Management LLC acquired a new stake in Novo Nordisk A/S during the first quarter worth about $45,000. 11.54% of the stock is owned by institutional investors and hedge funds.

Novo Nordisk A/S Price Performance

NYSE NVO opened at $38.60 on Friday. The company has a debt-to-equity ratio of 0.55, a current ratio of 0.87 and a quick ratio of 0.66. The stock’s fifty day moving average price is $45.95 and its 200 day moving average price is $43.87. Novo Nordisk A/S has a 1 year low of $35.12 and a 1 year high of $64.16. The company has a market cap of $172.37 billion, a price-to-earnings ratio of 9.44, a PEG ratio of 1.30 and a beta of 0.74.

Novo Nordisk A/S (NYSE:NVO) last issued its quarterly earnings results on Tuesday, June 30th. The company reported $0.94 EPS for the quarter. The company 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%. As a group, equities research analysts forecast that Novo Nordisk A/S will post 3.52 earnings per share for the current year.

Novo Nordisk A/S Cuts Dividend

The firm also recently announced a dividend, which was paid on Tuesday, August 25th. Investors of record on Monday, August 17th were given a dividend of $0.5786 per share. This is a drop from Novo Nordisk A/S’s previous dividend of $1.2751. This represents a yield of 258.0%. The ex-dividend date was Monday, August 17th. 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: Novo set a goal of generating more than DKK 150 billion—roughly $23 billion—in pipeline sales by 2035 and aims to launch more than five potential multiblockbuster medicines by 2030. Management expects bolt-on acquisitions and new products to reduce reliance on Wegovy and Ozempic after patent protection begins to expire. Novo Nordisk Sets Pipeline Sales Target Above $23 Billion By 2035
• Positive Sentiment: Encouraging clinical and regulatory news includes positive CagriSema trial results, strong quarter-over-quarter growth for the Wegovy pill, and Singapore approval for Wegovy in certain liver-related uses. Rare-disease candidates Frehemgo and Sogroya also received positive European regulatory opinions. Novo’s CagriSema Delivers Superior Weight Loss Versus Tirzepatide
• Neutral Sentiment: CEO Mike Doustdar said Novo is open to eventually replacing its American depositary receipts with a direct New York listing. Such a move could improve U.S. investor access and visibility, but management said it is not currently pursuing a listing change. Novo Nordisk Open to New York Listing Upgrade
• Negative Sentiment: Investors viewed the capital-markets update as lacking near-term detail and reacted negatively to management’s warning about Wegovy and Ozempic growth. Analysts remain concerned that Eli Lilly is gaining ground in the GLP-1 market and that the new pipeline targets will take years to translate into revenue. Novo’s New Strategy Hinges on Investor Trust
• Negative Sentiment: Upcoming semaglutide patent cliffs, pricing pressure, and uncertainty over the durability of Novo’s competitive position have outweighed the stock’s inexpensive valuation. Commentary that a cheap earnings multiple cannot compensate for weak growth has reinforced the selloff. Novo Nordisk CEO Delivered a Warning

Novo Nordisk A/S Company Profile

Novo Nordisk A/S is a Danish healthcare company headquartered in Bagsværd, Denmark. Founded in 1923, the company develops and manufactures pharmaceutical products focused primarily on diabetes and obesity care, as well as treatments for rare blood disorders and growth disorders.

Its diabetes portfolio includes insulin products and medicines in the glucagon-like peptide-1 (GLP-1) class, including Ozempic, Rybelsus and Wegovy. The company also offers treatments for obesity, hemophilia and other rare conditions, along with growth hormone therapies.