Novartis (NYSE:NVS) Sees Strong Trading Volume on Strong Earnings

Novartis AG (NYSE:NVS) saw unusually-strong trading volume on Tuesday following a better than expected earnings announcement. Approximately 1,016,056 shares were traded during mid-day trading, a decline of 24% from the previous session’s volume of 1,330,854 shares.The stock last traded at $112.16 and had previously closed at $115.63.

The company reported $2.06 EPS for the quarter, topping analysts’ consensus estimates of $1.94 by $0.12. The company had revenue of $12.82 billion during the quarter, compared to analysts’ expectations of $12.62 billion. Novartis had a net margin of 33.76% and a return on equity of 34.56%. During the same period last year, the business earned $1.74 EPS.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. Deutsche Bank Aktiengesellschaft reissued a “hold” rating on shares of Novartis in a research report on Friday, July 19th. Jefferies Financial Group lowered shares of Novartis from a “buy” rating to a “hold” rating in a research report on Tuesday, September 3rd. Bank of America lowered shares of Novartis from a “buy” rating to a “neutral” rating and cut their target price for the company from $135.00 to $130.00 in a report on Wednesday, September 11th. BMO Capital Markets lifted their target price on shares of Novartis from $118.00 to $120.00 and gave the company a “market perform” rating in a report on Wednesday. Finally, The Goldman Sachs Group reaffirmed a “neutral” rating and set a $121.00 target price (up from $119.00) on shares of Novartis in a report on Thursday, September 5th. One analyst has rated the stock with a sell rating, seven have given a hold rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, Novartis has an average rating of “Hold” and an average price target of $121.50.

Institutional Investors Weigh In On Novartis

Large investors have recently modified their holdings of the company. Raymond James & Associates increased its position in shares of Novartis by 1.3% in the second quarter. Raymond James & Associates now owns 536,607 shares of the company’s stock valued at $57,127,000 after buying an additional 6,767 shares in the last quarter. Manning & Napier Advisors LLC acquired a new position in Novartis during the 2nd quarter worth approximately $15,044,000. O Shaughnessy Asset Management LLC raised its position in shares of Novartis by 6.5% in the 1st quarter. O Shaughnessy Asset Management LLC now owns 180,764 shares of the company’s stock valued at $17,485,000 after purchasing an additional 11,080 shares in the last quarter. Integral Health Asset Management LLC raised its position in shares of Novartis by 33.3% during the 2nd quarter. Integral Health Asset Management LLC now owns 300,000 shares of the company’s stock valued at $31,938,000 after acquiring an additional 75,000 shares in the last quarter. Finally, FORA Capital LLC acquired a new stake in shares of Novartis during the 1st quarter valued at approximately $2,968,000. 13.12% of the stock is owned by institutional investors and hedge funds.

Novartis Stock Performance

The firm has a market capitalization of $224.62 billion, a price-to-earnings ratio of 14.83, a price-to-earnings-growth ratio of 1.65 and a beta of 0.57. The company has a 50-day moving average of $116.13 and a 200-day moving average of $109.02. The company has a current ratio of 0.93, a quick ratio of 0.72 and a debt-to-equity ratio of 0.47.

About Novartis

Novartis AG engages in the research, development, manufacture, and marketing of healthcare products in Switzerland and internationally. The company offers prescription medicines for patients and physicians. It focuses on therapeutic areas, such as cardiovascular, renal and metabolic, immunology, neuroscience, and oncology, as well as ophthalmology and hematology.