NovoCure (NASDAQ:NVCR) Shares Gap Up on Strong Earnings

NovoCure Limited (NASDAQ:NVCR)’s share price gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $19.99, but opened at $20.68. NovoCure shares last traded at $19.6050, with a volume of 406,982 shares trading hands.

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 during the quarter, compared to the consensus estimate of $172.44 million. NovoCure had a negative net margin of 25.66% and a negative return on equity of 50.82%. The firm’s quarterly revenue was up 15.6% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.36) earnings per share.

NovoCure News Roundup

Here are the key news stories impacting NovoCure this week:

• Positive Sentiment: NovoCure reported Q2 earnings of -$0.13 per share, beating expectations for a larger loss, while revenue of $183.58 million also topped estimates and rose 15.6% year over year. The results suggest improving execution and stronger demand. Article Title
• Positive Sentiment: The company raised its FY2026 revenue guidance to $710 million-$725 million, above the Street’s prior expectation, reinforcing confidence in near-term growth.
• Positive Sentiment: Investor sentiment was boosted by reports that Novocure hit a new 52-week high as traders positioned for a higher growth outlook and potential FDA approval for its brain therapy candidate. Article Title
• Neutral Sentiment: HC Wainwright trimmed its FY2029 EPS estimate slightly to $1.90 from $1.95, but kept a Buy rating and raised its price target to $52, which still signals long-term upside. Article Title
• Neutral Sentiment: Wedbush also lifted its price target, from $18 to $20, while maintaining a Neutral rating, reflecting a more cautious stance despite recent strength. Article Title

Analyst Ratings Changes

Several research firms recently commented on NVCR. Zacks Research cut NovoCure from a “hold” rating to a “strong sell” rating in a research report on Tuesday, July 14th. Wells Fargo & Company boosted their target price on NovoCure from $13.50 to $17.00 and gave the stock an “equal weight” rating in a research report on Monday, May 4th. Evercore restated an “outperform” rating on shares of NovoCure in a research note on Friday, May 1st. Wedbush raised their price target on shares of NovoCure from $18.00 to $20.00 and gave the company a “neutral” rating in a report on Friday. Finally, Weiss Ratings upgraded shares of NovoCure from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Monday, June 1st. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $21.20.

Insider Buying and Selling

In related news, Director Timothy J. Scannell sold 2,945 shares of NovoCure 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 sale, the director owned 14,288 shares of the company’s stock, valued at $225,321.76. The trade was a 17.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 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 company’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $15.77, for a total value of $46,442.65. Following the sale, the director owned 197,657 shares of the company’s stock, valued at approximately $3,117,050.89. This trade represents a 1.47% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 51,943 shares of company stock valued at $893,171 over the last ninety days. 5.52% of the stock is owned by insiders.

Hedge Funds Weigh In On NovoCure

Several institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. boosted its holdings in shares of NovoCure by 4.8% in the fourth quarter. Vanguard Group Inc. now owns 10,958,209 shares of the medical equipment provider’s stock worth $141,690,000 after buying an additional 502,368 shares during the last quarter. Soleus Capital Management L.P. grew its position in NovoCure by 25.0% during the second quarter. Soleus Capital Management L.P. now owns 6,904,302 shares of the medical equipment provider’s stock valued at $122,897,000 after buying an additional 1,382,888 shares during the period. Morgan Stanley increased its holdings in NovoCure by 453.4% during the fourth quarter. Morgan Stanley now owns 5,069,895 shares of the medical equipment provider’s stock valued at $65,554,000 after buying an additional 4,153,741 shares during the last quarter. Quantinno Capital Management LP increased its holdings in NovoCure by 23.7% during the first quarter. Quantinno Capital Management LP now owns 2,487,376 shares of the medical equipment provider’s stock valued at $27,112,000 after buying an additional 477,128 shares during the last quarter. Finally, Balyasny Asset Management L.P. raised its position in NovoCure by 38.8% in the second quarter. Balyasny Asset Management L.P. now owns 2,270,076 shares of the medical equipment provider’s stock worth $40,407,000 after acquiring an additional 634,925 shares during the period. Institutional investors own 84.61% of the company’s stock.

NovoCure Stock Down 4.4%

The company’s 50-day simple moving average is $16.64 and its two-hundred day simple moving average is $14.12. The firm has a market capitalization of $2.21 billion, a P/E ratio of -12.48 and a beta of 0.94. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.90 and a quick ratio of 2.70.

NovoCure Company Profile

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.