Novartis (NYSE:NVS) Hits New 1-Year High After Strong Earnings

Novartis AG (NYSE:NVS)’s share price hit a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The company traded as high as $154.66 and last traded at $154.3920, with a volume of 513427 shares traded. The stock had previously closed at $149.86.

The company reported $2.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.97 by $0.06. The firm had revenue of $13.34 billion during the quarter, compared to the consensus estimate of $13.85 billion. Novartis had a net margin of 26.49% and a return on equity of 41.21%. The company’s revenue was up 1.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.98 EPS.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on NVS shares. Jefferies Financial Group reaffirmed a “hold” rating on shares of Novartis in a research report on Monday, October 27th. Morgan Stanley reiterated an “overweight” rating on shares of Novartis in a research note on Wednesday, December 3rd. Cfra Research upgraded Novartis to a “hold” rating in a report on Wednesday, October 29th. TD Cowen restated a “hold” rating on shares of Novartis in a report on Monday, November 10th. Finally, HSBC reissued a “reduce” rating and set a $112.00 target price on shares of Novartis in a research report on Wednesday, December 10th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $119.75.

Hedge Funds Weigh In On Novartis

Several large investors have recently modified their holdings of the stock. Arlington Trust Co LLC bought a new stake in Novartis in the fourth quarter valued at about $25,000. GFG Capital LLC bought a new position in Novartis during the second quarter worth $26,000. Legacy Investment Solutions LLC acquired a new position in Novartis in the second quarter worth $30,000. Valley Wealth Managers Inc. bought a new stake in Novartis during the third quarter valued at $31,000. Finally, Measured Wealth Private Client Group LLC acquired a new stake in shares of Novartis during the third quarter worth $33,000. Institutional investors own 13.12% of the company’s stock.

Novartis Stock Performance

The stock’s 50-day moving average price is $139.27 and its 200-day moving average price is $130.20. The company has a current ratio of 0.88, a quick ratio of 0.68 and a debt-to-equity ratio of 0.50. The company has a market capitalization of $325.79 billion, a P/E ratio of 21.10, a P/E/G ratio of 1.97 and a beta of 0.50.

Novartis Company Profile

Novartis is a Swiss multinational pharmaceutical company headquartered in Basel that researches, develops, manufactures and commercializes prescription medicines and related health-care products. Formed through the 1996 merger of Ciba-Geigy and Sandoz, Novartis operates globally and focuses on bringing therapeutics from discovery through clinical development to commercial markets worldwide.

The company’s activities center on innovative pharmaceuticals across several therapeutic areas, including oncology, immunology, cardiovascular and metabolic diseases, neuroscience and ophthalmology, alongside capabilities in advanced therapies such as biologics, cell and gene therapies.