Zacks Investment Research Downgrades Novo Nordisk A/S (NVO) to Sell
Novo Nordisk A/S (NYSE:NVO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Monday.
According to Zacks, “Novo Nordisk’s third-quarter results were mixed with the company beating earnings estimates but revenues falling short of expectations. The company faces generic threat for several of its products as well as patent expiration issues. We are also concerned about the company’s insulin product prices that are either subsidized or are subject to price control. Moreover, Novo Nordisk received a setback when the FDA issued a Complete Response Letter (CRL) for its New Drug Application for faster-acting insulin aspart. However, strong performance of products such as Victoza, Tresiba, Saxenda and Norditropin should continue contributing significantly to the Novo Nordisk’s top line, going forward. In addition, the company’s strong presence in the diabetes care market is a big positive. We are also encouraged by the company’s efforts to develop its pipeline candidates.”
A number of other analysts have also recently commented on NVO. Citigroup Inc. reiterated a “buy” rating on shares of Novo Nordisk A/S in a research report on Wednesday, August 3rd. Bank of America Corp. cut Novo Nordisk A/S from a “buy” rating to a “neutral” rating in a report on Monday, August 8th. HSBC upgraded Novo Nordisk A/S from a “reduce” rating to a “hold” rating in a report on Wednesday, August 31st. Morgan Stanley cut Novo Nordisk A/S from an “overweight” rating to an “equal weight” rating in a report on Thursday, September 1st. Finally, JPMorgan Chase & Co. cut Novo Nordisk A/S from an “overweight” rating to a “neutral” rating in a report on Friday, September 9th. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating, five have given a buy rating and one has assigned a strong buy rating to the stock. The company has a consensus rating of “Hold” and an average target price of $61.33.
Shares of Novo Nordisk A/S (NYSE:NVO) opened at 33.40 on Monday. The stock has a market capitalization of $84.39 billion, a price-to-earnings ratio of 15.31 and a beta of 0.84. Novo Nordisk A/S has a 1-year low of $33.27 and a 1-year high of $59.00. The company’s 50 day moving average is $39.22 and its 200-day moving average is $48.79.
A number of institutional investors have recently added to or reduced their stakes in the company. Jennison Associates LLC raised its position in Novo Nordisk A/S by 16.4% in the second quarter. Jennison Associates LLC now owns 17,400,801 shares of the company’s stock valued at $935,815,000 after buying an additional 2,452,120 shares during the period. Loomis Sayles & Co. L P raised its position in Novo Nordisk A/S by 6.3% in the second quarter. Loomis Sayles & Co. L P now owns 11,847,603 shares of the company’s stock valued at $637,164,000 after buying an additional 705,851 shares during the period. WCM Investment Management CA raised its position in Novo Nordisk A/S by 5.2% in the third quarter. WCM Investment Management CA now owns 9,238,271 shares of the company’s stock valued at $384,220,000 after buying an additional 458,749 shares during the period. Fayez Sarofim & Co. raised its position in Novo Nordisk A/S by 2.1% in the second quarter. Fayez Sarofim & Co. now owns 6,068,044 shares of the company’s stock valued at $326,612,000 after buying an additional 126,829 shares during the period. Finally, Morgan Stanley raised its position in Novo Nordisk A/S by 88.6% in the third quarter. Morgan Stanley now owns 3,012,074 shares of the company’s stock valued at $125,273,000 after buying an additional 1,415,016 shares during the period. 6.94% of the stock is currently owned by hedge funds and other institutional investors.
About Novo Nordisk A/S
Novo Nordisk A/S is a healthcare company. The Company is engaged in discovery, development, manufacturing and marketing of pharmaceutical products. The Company’s business segments include diabetes and obesity care, and biopharmaceuticals. The diabetes and obesity care segment covers insulins, glucagon-like peptide-1 (GLP-1), other protein-related products (such as glucagon, protein-related delivery systems and needles), oral anti-diabetic drugs and obesity.
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