Novo Nordisk A/S (NYSE:NVO) Trading Down 16.3% on Analyst Downgrade

Novo Nordisk A/S (NYSE:NVO) dropped 16.3% during trading on Monday after Deutsche Bank Aktiengesellschaft downgraded the stock from a buy rating to a hold rating. The stock traded as low as $39.34 and last traded at $39.6780. Approximately 98,255,744 shares traded hands during mid-day trading, an increase of 285% from the average daily volume of 25,502,754 shares. The stock had previously closed at $47.42.

A number of other research firms have also commented on NVO. The Goldman Sachs Group restated a “buy” rating on shares of Novo Nordisk A/S in a research report on Thursday, January 22nd. Jefferies Financial Group upgraded shares of Novo Nordisk A/S from an “underperform” rating to a “hold” rating in a research note on Thursday, February 12th. Argus restated a “hold” rating on shares of Novo Nordisk A/S in a research report on Monday, December 8th. Zacks Research downgraded Novo Nordisk A/S from a “hold” rating to a “strong sell” rating in a research report on Monday, February 9th. Finally, TD Cowen reissued a “buy” rating on shares of Novo Nordisk A/S in a research note on Tuesday, February 3rd. Seven investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Novo Nordisk A/S presently has a consensus rating of “Hold” and an average price target of $56.07.

Novo Nordisk A/S News Summary

Here are the key news stories impacting Novo Nordisk A/S this week:

• Positive Sentiment: Wegovy/semaglutide franchise remains a revenue engine: analysis notes Wegovy generated strong 2025 net revenues (DKK 79.1bn) and argues long‑term semaglutide demand still underpins Novo’s fundamentals. Why Wegovy Growth Beats Wall Street Expectations
• Neutral Sentiment: Market context: several outlets summarize why NVO plunged and place the result in broader market moves (tariff headlines, index pressure) that amplified the selloff. Useful for gauging whether weakness is stock‑specific or market‑wide. Investopedia: Stock Tumbles…
• Negative Sentiment: REDEFINE‑4 trial miss is the core catalyst: CagriSema produced ~20.2% mean weight loss vs ~23.6% for Lilly’s tirzepatide at 84 weeks, so the study did not meet its non‑inferiority goal — prompting immediate investor concern about Novo’s ability to regain obesity market share. Shares Drop After CagriSema Misses Phase 3 Goal
• Negative Sentiment: Market and analyst reaction: major outlets report a sharp selloff that erased recent Wegovy‑era gains and prompted at least one notable downgrade (Deutsche Bank moved to hold), increasing near‑term downside risk from reduced analyst support. Reuters: Slump Wipes Out Gains
• Negative Sentiment: Competitive/regulatory pressure: Eli Lilly continues to shore up its advantage (FDA approval for a multi‑dose device for its product was announced), which may reinforce prescribing and commercial advantages versus Novo. Lilly to launch multi‑dose device
• Negative Sentiment: Legal/investor actions: law firms have announced investigations/claims and solicitation for class‑action participation, which can add litigation risk and management distraction. DJS Law Group Investigates Schall Law Firm Notice

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in NVO. Sunbelt Securities Inc. raised its holdings in Novo Nordisk A/S by 1.5% in the 4th quarter. Sunbelt Securities Inc. now owns 21,316 shares of the company’s stock worth $1,085,000 after purchasing an additional 323 shares during the period. White Knight Strategic Wealth Advisors LLC bought a new stake in Novo Nordisk A/S during the fourth quarter worth approximately $732,000. Hamilton Wealth LLC bought a new stake in shares of Novo Nordisk A/S in the 4th quarter worth about $545,000. T. Rowe Price Investment Management Inc. purchased a new position in Novo Nordisk A/S during the 4th quarter valued at $41,000. Finally, Compound Planning Inc. grew its stake in Novo Nordisk A/S by 8.2% in the 4th quarter. Compound Planning Inc. now owns 30,337 shares of the company’s stock worth $1,544,000 after acquiring an additional 2,294 shares in the last quarter. 11.54% of the stock is owned by hedge funds and other institutional investors.

Novo Nordisk A/S Price Performance

The company has a debt-to-equity ratio of 0.61, a current ratio of 0.80 and a quick ratio of 0.57. The stock has a market capitalization of $177.16 billion, a P/E ratio of 11.43 and a beta of 0.67. The firm has a fifty day moving average of $53.77 and a two-hundred day moving average of $53.30.

Novo Nordisk A/S (NYSE:NVO) last issued its quarterly earnings results on Tuesday, February 3rd. The company reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.90 by $0.11. The business had revenue of $12.43 billion during the quarter, compared to the consensus estimate of $11.97 billion. Novo Nordisk A/S had a return on equity of 68.91% and a net margin of 33.03%. On average, analysts predict that Novo Nordisk A/S will post 3.84 EPS for the current year.

Novo Nordisk A/S Dividend Announcement

The business also recently declared a dividend, which will be paid on Wednesday, April 8th. Stockholders of record on Monday, March 30th will be issued a dividend of $1.2751 per share. This represents a dividend yield of 541.0%. The ex-dividend date is Monday, March 30th. Novo Nordisk A/S’s payout ratio is currently 23.63%.

Novo Nordisk A/S Company Profile

Novo Nordisk A/S is a Danish multinational pharmaceutical company headquartered in Bagsværd, Denmark, best known for its leadership in diabetes care and metabolic health. The company traces its roots to early Danish insulin production in the 1920s and was established in its current form through a 1989 merger of predecessor companies. Novo Nordisk develops, manufactures and markets pharmaceutical products and devices that address chronic and serious diseases, with a strong emphasis on long-term treatment and patient support.

The company’s core product portfolio centers on diabetes therapies, including a range of insulins and modern incretin-based treatments.