NovoCure (NASDAQ:NVCR) Sets New 1-Year High Following Better-Than-Expected Earnings

NovoCure Limited (NASDAQ:NVCR)’s share price hit a new 52-week high on Thursday after the company announced better than expected quarterly earnings. The company 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 the consensus estimate of $172.44 million. NovoCure had a negative return on equity of 50.82% and a negative net margin of 25.66%.NovoCure’s revenue for the quarter was up 15.6% on a year-over-year basis. During the same quarter last year, the business posted ($0.36) EPS.

Analysts Set New Price Targets

A number of research analysts recently issued reports on NVCR shares. Evercore reiterated an “outperform” rating on shares of NovoCure in a report on Friday, May 1st. Wedbush restated a “neutral” rating and issued a $18.00 price target on shares of NovoCure in a research report on Thursday, April 16th. Zacks Research downgraded shares of NovoCure from a “hold” rating to a “strong sell” rating in a research note on Tuesday, July 14th. HC Wainwright reiterated a “buy” rating and set a $46.00 price target (down from $48.00) on shares of NovoCure in a report on Thursday, June 18th. Finally, JPMorgan Chase & Co. assumed coverage on shares of NovoCure in a research note on Monday, July 13th. They issued a “neutral” rating and a $17.00 price objective on the stock. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, NovoCure currently has a consensus rating of “Hold” and a consensus target price of $23.60.

Insiders Place Their Bets

In other NovoCure news, Director Allyson J. Ocean sold 2,945 shares of the company’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $15.77, for a total transaction of $46,442.65. Following the sale, the director owned 11,324 shares of the company’s stock, valued at approximately $178,579.48. This represents a 20.64% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director W Anthony Vernon sold 2,945 shares of the stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $15.77, for a total value of $46,442.65. Following the completion of the transaction, the director owned 197,657 shares in the company, valued at approximately $3,117,050.89. This represents a 1.47% decrease in their ownership of the stock. 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 have sold 51,943 shares of company stock valued at $893,171 over the last quarter. Company insiders own 5.52% of the company’s stock.

Institutional Investors Weigh In On NovoCure

A number of institutional investors have recently added to or reduced their stakes in the company. Handelsbanken Fonder AB grew its holdings in shares of NovoCure by 37.2% in the second quarter. Handelsbanken Fonder AB now owns 51,223 shares of the medical equipment provider’s stock valued at $776,000 after acquiring an additional 13,900 shares in the last quarter. Amundi grew its stake in NovoCure by 19.9% in the 1st quarter. Amundi now owns 47,583 shares of the medical equipment provider’s stock valued at $519,000 after purchasing an additional 7,907 shares during the period. California State Teachers Retirement System grew its stake in NovoCure by 43.6% in the 1st quarter. California State Teachers Retirement System now owns 142,561 shares of the medical equipment provider’s stock valued at $1,554,000 after purchasing an additional 43,257 shares during the period. Eversept Partners LP raised its stake in shares of NovoCure by 11.5% during the 1st quarter. Eversept Partners LP now owns 134,917 shares of the medical equipment provider’s stock worth $1,471,000 after purchasing an additional 13,939 shares during the period. Finally, Quantinno Capital Management LP boosted its holdings in shares of NovoCure by 23.7% in the 1st quarter. Quantinno Capital Management LP now owns 2,487,376 shares of the medical equipment provider’s stock worth $27,112,000 after buying an additional 477,128 shares during the last quarter. 84.61% of the stock is owned by institutional investors.

NovoCure Stock Performance

The company’s 50-day moving average is $16.60 and its two-hundred day moving average is $14.07. The company has a quick ratio of 2.70, a current ratio of 2.90 and a debt-to-equity ratio of 0.71. The company has a market cap of $2.28 billion, a P/E 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.