On April 28, 2023, it was reported that Bank of Montreal Can had reduced its position in NovoCure Limited (NASDAQ:NVCR) by 36.3% in the fourth quarter, according to their most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor had sold 7,481 shares during the quarter and now holds 13,154 shares of the medical equipment provider’s stock which were worth $980,000 as of the most recent SEC filing.
NovoCure Ltd. is an oncology company that specializes in developing, manufacturing, and commercializing Optune for treating a variety of solid tumors through its cancer cell division disrupting platform called Tumor Treating Field. While NovoCure aims to revolutionize cancer treatment through their innovative technology-led approach, market analysts seem hesitant to back them up.
Several research firms have issued reports on NVCR of late with different ratings. StockNews.com began coverage on NovoCure on Thursday, March 16th and issued a “sell” rating for the stock. Piper Sandler lifted their target price from $70.00 to $80.00 in a research note on Tuesday, January 17th. JPMorgan Chase & Co maintained an “underweight” rating and lowered their target price from $99.00 to $50.00 due to limitations in Tumor Treating Field’s widespread application.
HC Wainwright also cut NovoCure’s target price from $135.00 to $130 while Wells Fargo & Company surprisingly lowered the company’s value by downgrading it from “overweight” to “equal weight” while lifting their target price for the company from $89.00 to $107.00.
The contradicting opinions given by these firms create doubt about NovoCure’s position within the market.
On average though, based on data from Bloomberg.com, NovoCure has been given a “Hold” rating and a consensus target price of $87.33. However, with the fluctuating opinions of these research firms, it is difficult to determine where NovoCure’s position will eventually be in the market as banks like the Bank of Montreal Can seem hesitant to invest in them.
NovoCure’s scientific breakthroughs are commendable and can change the face of cancer treatment for millions globally but with conflicting opinions on their stock value, investors would have to do intense research before putting their bets in.
NovoCure Sees High Interest from Institutional Investors and Hedge Funds Despite Disappointing Q4 Earnings
NovoCure Ltd., a leading oncology company focused on developing, manufacturing and commercializing Optune for the treatment of solid tumors, has seen significant interest from institutional investors and hedge funds in recent months. McElhenny Sheffield Capital Management LLC purchased a new stake in Novocure worth $32,000 in Q4 of 2022. Meanwhile, Whittier Trust Co. bought stakes worth $54,000 and China Universal Asset Management Co. Ltd purchased shares valued at $75,000 in Q3 of the same year.
Lazard Asset Management LLC followed this trend with a surge of 12,975% in its holdings during Q3 of 2022 and Captrust Financial Advisors increased its stake by 47% during Q2 to own 1,292 shares worth $90,000 by the last quarter.
As per the Securities and Exchange Commission filing reports for Mar 1st-3rd, insider Frank X. Leonard sold over 8k shares that were worth over $621k from NovoCure’s stock over the last quarter alone indicating an active trade market for stakeholders.
NovoCure Limited’s platform for cancer treatment utilizes Tumor Treating Field which uses electric fields to disrupt solid tumor cancer cell division. Shares of NVCR opened at $65.59 on April 28th; however, analysts have observed its range between $56.06-$120.03 within the past year with a market capitalization currently standing at $6.97 billion.
A disappointing Q4 earning output reportedly saw the medical equipment provider report ($0.36) earnings per share while revenue dipped to $128 million compared to earlier estimates underlining international interest among top investors seeking growth opportunities with NovoCure amid slumps brought upon by fluctuating world events such as coronavirus outbreaks & international mobility restrictions.
As equities analysts await future financial figures from NovoCure they maintain a forecast that suggests earnings per share for the current fiscal year will amount to -1.65%. This is what is currently keeping NovoCure on the investment radar of top institutional investors despite recent dips in performance.