The time has not yet come to remove your chips from the table: Novo Nordisk A/S (NVO)

Novo Nordisk A/S (NYSE: NVO) stock fell -0.92% on Friday to $98.31 against a previous-day closing price of $99.22. With 1.32 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.67 million shares. During the session, the Drug Manufacturers – General company that operates in wider Healthcare sector, reached to the highest price of $99.16 whereas the lowest price it dropped to was $97.87. The 52-week range on NVO shows that it touched its highest point at $122.16 and its lowest point at $91.51 during that stretch. It currently has a 1-year price target of $128.20. With its current market cap of 174.26 billion, NVO has annualized dividend of $1.60 while the current yield stands at 1.63%. Beta for the stock currently stands at 0.49.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NVO was down-trending over the past week, with a drop of -4.75%, but this was down by -7.75% over a month. Three-month performance dropped to -9.33% while six-month performance fell -10.11%. The stock lost -2.54% in the past year, while it has lost -12.22% so far this year. A look at the trailing 12-month EPS for NVO yields 2.96 with Next year EPS estimates of 28.62. For the next quarter, that number is 6.04. This implies an EPS growth rate of 15.20% for this year and 20.14% for next year. EPS is expected to grow by 1.99% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 6.70%.

Float and Shares Shorts:

At present, 2.27 billion NVO shares are outstanding with a float of 1.08 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 1.04 million, which was 0.05% higher than short shares on Jun 14, 2022. In addition to Mr. Lars Fruergaard Jorgensen as the firm’s Pres, CEO & Member of Management Board, Mr. Karsten Munk Knudsen serves as its Exec. VP, CFO & Member of the Management Board.

Institutional Ownership:

Through their ownership of 8.30% of NVO’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 7.22% of NVO, in contrast to 1.23% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in NVO with 1.01% of the stake, Renaissance Technologies LLC holds 17,529,671 shares worth 17,529,671. A second-largest stockholder of NVO, Fisher Asset Management LLC, holds 14,319,532 shares, controlling over 0.82% of the firm’s shares. Jennison Associates LLC is the third largest shareholder in NVO, holding 10,517,221 shares or 0.60% stake. With a 0.12% stake in NVO, the Washington Mutual Investors Fund is the largest stakeholder. A total of 2,156,940 shares are owned by the mutual fund manager. The Harbor Capital Appreciation Fund, which owns about 0.09% of NVO stock, is the second-largest Mutual Fund holder. It holds 1,593,379 shares valued at 169.06 million. Loomis Sayles Growth Fund holds 0.08% of the stake in NVO, owning 1,403,378 shares worth 148.9 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NVO since 28 analysts follow the stock currently. There are 14 analysts who recommend BUY ratings, while 3 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With NVO analysts setting a high price target of $144.36 and a low target of $74.09, the average target price over the next 12 months is $117.85. Based on these targets, NVO could surge 46.84% to reach the target high and fall by -24.64% to reach the target low. Reaching the average price target will result in a growth of 19.88% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. NVO will report FY 2022 earnings on 02/01/2023. Analysts have provided yearly estimates in a range of $3.44 being high and $2.98 being low. For NVO, this leads to a yearly average estimate of $3.30. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Novo Nordisk A/S surprised analysts by -$0.02 when it reported $0.80 EPS against a consensus estimate of $0.82. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is $0.96 and the low estimate is $0.77. The average estimate for the next quarter is thus $0.84.

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