NovoCure (NASDAQ:NVCR) Trading Up 10.5% After Strong Earnings

NovoCure Limited (NASDAQ:NVCR)’s share price rose 10.5% during trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $14.20 and last traded at $14.08. Approximately 942,230 shares traded hands during trading, a decline of 29% from the average daily volume of 1,325,369 shares. The stock had previously closed at $12.74.

The medical equipment provider reported ($0.36) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.43) by $0.07. NovoCure had a negative net margin of 36.67% and a negative return on equity of 49.34%. The business had revenue of $138.50 million during the quarter, compared to the consensus estimate of $131.44 million. During the same period in the prior year, the firm earned ($0.50) EPS. NovoCure’s quarterly revenue was up 13.3% compared to the same quarter last year.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on NVCR shares. JPMorgan Chase & Co. raised their price target on NovoCure from $15.00 to $17.00 and gave the company a “neutral” rating in a research report on Tuesday, March 19th. Wedbush reaffirmed a “neutral” rating and issued a $21.00 price target on shares of NovoCure in a research report on Thursday. Evercore ISI increased their price objective on NovoCure from $14.00 to $15.00 and gave the company an “in-line” rating in a research report on Friday, February 23rd. HC Wainwright lowered their price objective on shares of NovoCure from $24.00 to $22.00 and set a “neutral” rating on the stock in a research note on Thursday. Finally, Wells Fargo & Company cut their target price on shares of NovoCure from $49.00 to $42.00 and set an “overweight” rating for the company in a research note on Wednesday, April 3rd. Five investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $30.88.

Insider Activity

In other news, COO Wilhelmus Cm Groenhuysen sold 2,107 shares of the stock in a transaction on Friday, March 1st. The shares were sold at an average price of $16.03, for a total value of $33,775.21. Following the completion of the transaction, the chief operating officer now owns 252,452 shares in the company, valued at approximately $4,046,805.56. The sale was disclosed in a filing with the SEC, which is available at this link. In other NovoCure news, COO Wilhelmus Cm Groenhuysen sold 2,107 shares of NovoCure stock in a transaction that occurred on Friday, March 1st. The stock was sold at an average price of $16.03, for a total transaction of $33,775.21. Following the sale, the chief operating officer now directly owns 252,452 shares of the company’s stock, valued at $4,046,805.56. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Frank X. Leonard sold 1,679 shares of the stock in a transaction that occurred on Friday, March 1st. The stock was sold at an average price of $16.03, for a total value of $26,914.37. Following the completion of the transaction, the executive vice president now directly owns 160,938 shares of the company’s stock, valued at $2,579,836.14. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 7,921 shares of company stock worth $127,161. Company insiders own 5.67% of the company’s stock.

Institutional Investors Weigh In On NovoCure

Several large investors have recently made changes to their positions in the company. China Universal Asset Management Co. Ltd. lifted its holdings in NovoCure by 96.8% during the 3rd quarter. China Universal Asset Management Co. Ltd. now owns 2,739 shares of the medical equipment provider’s stock valued at $44,000 after purchasing an additional 1,347 shares during the last quarter. GAMMA Investing LLC raised its stake in shares of NovoCure by 278.0% in the first quarter. GAMMA Investing LLC now owns 2,880 shares of the medical equipment provider’s stock valued at $45,000 after acquiring an additional 2,118 shares during the last quarter. Canada Pension Plan Investment Board acquired a new position in shares of NovoCure in the 3rd quarter worth approximately $74,000. Daiwa Securities Group Inc. grew its position in NovoCure by 1,113.7% during the 1st quarter. Daiwa Securities Group Inc. now owns 5,122 shares of the medical equipment provider’s stock worth $80,000 after acquiring an additional 4,700 shares during the last quarter. Finally, Acadian Asset Management LLC bought a new stake in NovoCure during the 3rd quarter worth approximately $85,000. Institutional investors own 84.61% of the company’s stock.

NovoCure Price Performance

The stock has a fifty day moving average of $14.21 and a two-hundred day moving average of $13.87. The company has a current ratio of 5.78, a quick ratio of 5.56 and a debt-to-equity ratio of 1.57. The stock has a market capitalization of $1.59 billion, a price-to-earnings ratio of -8.17 and a beta of 0.50.

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.