NovoCure (NASDAQ:NVCR) Shares Gap Up – Still a Buy?

Shares of NovoCure Limited (NASDAQ:NVCR) gapped up prior to trading on Wednesday . The stock had previously closed at $17.78, but opened at $21.46. NovoCure shares last traded at $18.70, with a volume of 2,999,479 shares trading hands.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on NVCR shares. Evercore ISI lowered their price objective on shares of NovoCure from $21.00 to $18.00 and set an “in-line” rating on the stock in a research note on Tuesday, October 1st. Wells Fargo & Company lowered their price target on NovoCure from $42.00 to $40.00 and set an “overweight” rating on the stock in a research report on Friday, July 26th. Wedbush restated an “outperform” rating and issued a $24.00 price objective on shares of NovoCure in a research note on Thursday, July 25th. Finally, HC Wainwright upgraded NovoCure from a “neutral” rating to a “buy” rating and lifted their target price for the stock from $24.00 to $30.00 in a research note on Wednesday. Three analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $26.17.

NovoCure Stock Performance

The stock’s 50 day moving average is $17.09 and its 200 day moving average is $17.71. The company has a current ratio of 6.46, a quick ratio of 6.22 and a debt-to-equity ratio of 1.81. The firm has a market cap of $1.82 billion, a price-to-earnings ratio of -9.34 and a beta of 0.70.

NovoCure (NASDAQ:NVCR) last posted its earnings results on Thursday, July 25th. The medical equipment provider reported ($0.31) EPS for the quarter, beating the consensus estimate of ($0.40) by $0.09. The company had revenue of $150.40 million for the quarter, compared to the consensus estimate of $135.83 million. NovoCure had a negative return on equity of 45.68% and a negative net margin of 30.67%. The firm’s revenue for the quarter was up 19.3% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.54) earnings per share. Analysts anticipate that NovoCure Limited will post -1.34 earnings per share for the current year.

Institutional Investors Weigh In On NovoCure

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Ridgewood Investments LLC acquired a new position in shares of NovoCure in the second quarter valued at about $28,000. Signaturefd LLC grew its position in shares of NovoCure by 61.7% during the 2nd quarter. Signaturefd LLC now owns 1,644 shares of the medical equipment provider’s stock worth $28,000 after purchasing an additional 627 shares in the last quarter. Point72 Asia Singapore Pte. Ltd. bought a new position in shares of NovoCure during the second quarter worth approximately $34,000. Fifth Third Bancorp acquired a new stake in shares of NovoCure in the second quarter valued at approximately $43,000. Finally, GAMMA Investing LLC boosted its stake in shares of NovoCure by 278.0% in the first quarter. GAMMA Investing LLC now owns 2,880 shares of the medical equipment provider’s stock valued at $45,000 after buying an additional 2,118 shares during the period. Institutional investors and hedge funds own 84.61% of the company’s stock.

NovoCure Company Profile

NovoCure Limited, an oncology company, engages in the development, manufacture, and commercialization of tumor treating fields (TTFields) devices for the treatment of solid tumor cancers in the United States, Germany, Japan, Greater China, and internationally. The company’s TTFields devices include Optune Gio and Optune Lua.