NovoCure (NASDAQ:NVCR) Sets New 12-Month High Following Better-Than-Expected Earnings

NovoCure Limited (NASDAQ:NVCR)’s stock price hit a new 52-week high during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $20.33 and last traded at $20.1390, with a volume of 912672 shares trading hands. The stock had previously closed at $15.57.

The medical equipment provider reported ($0.13) earnings per share for the quarter, beating the consensus estimate of ($0.33) by $0.20. The company had revenue of $183.58 million for the quarter, compared to analyst estimates of $172.44 million. NovoCure had a negative net margin of 25.66% and a negative return on equity of 50.82%. The company’s revenue was up 15.6% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.36) earnings per share.

Analyst Ratings Changes

Several equities analysts have recently commented on NVCR shares. JPMorgan Chase & Co. began coverage on NovoCure in a research report on Monday, July 13th. They issued a “neutral” rating and a $17.00 target price on the stock. Evercore reaffirmed an “outperform” rating on shares of NovoCure in a report on Friday, May 1st. HC Wainwright reiterated a “buy” rating and set a $46.00 price objective (down from $48.00) on shares of NovoCure in a research report on Thursday, June 18th. Wedbush reissued a “neutral” rating and set a $18.00 target price on shares of NovoCure in a report on Thursday, April 16th. Finally, Zacks Research cut shares of NovoCure from a “hold” rating to a “strong sell” rating in a research report on Tuesday, July 14th. Two equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $23.60.

Insider Activity at NovoCure

In other news, Director Allyson J. Ocean sold 2,945 shares of the business’s stock in a transaction that occurred on 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 transaction, the director directly owned 11,324 shares in the company, valued at approximately $178,579.48. The trade was a 20.64% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Frank X. Leonard sold 34,273 shares of the stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $17.93, for a total transaction of $614,514.89. Following the sale, the chief executive officer owned 459,520 shares in the company, valued at $8,239,193.60. This represents a 6.94% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 51,943 shares of company stock worth $893,171 in the last quarter. 5.52% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On NovoCure

A number of large investors have recently modified their holdings of NVCR. Empowered Funds LLC bought a new stake in shares of NovoCure during the 4th quarter worth $33,000. Kestra Advisory Services LLC bought a new position in NovoCure in the fourth quarter valued at about $49,000. Larson Financial Group LLC grew its position in NovoCure by 662.1% in the third quarter. Larson Financial Group LLC now owns 4,100 shares of the medical equipment provider’s stock valued at $53,000 after acquiring an additional 3,562 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. raised its stake in NovoCure by 25.9% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,442 shares of the medical equipment provider’s stock worth $70,000 after acquiring an additional 1,120 shares in the last quarter. Finally, Acadian Asset Management LLC bought a new position in shares of NovoCure in the first quarter worth about $87,000. Institutional investors and hedge funds own 84.61% of the company’s stock.

NovoCure Trading Up 26.5%

The business’s 50 day moving average price is $16.60 and its two-hundred day moving average price is $14.07. The company has a current ratio of 2.90, a quick ratio of 2.70 and a debt-to-equity ratio of 0.71. The company has a market capitalization of $2.28 billion, a price-to-earnings ratio of -12.87 and a beta of 0.94.

About NovoCure

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.