NovoCure Limited (NVCR) is looking forward to a strong quarter

NovoCure Limited (NASDAQ: NVCR) stock jumped 0.52% on Friday to $88.49 against a previous-day closing price of $88.03. With 1.02 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.91 million shares. During the session, the Medical Instruments & Supplies company that operates in wider Healthcare sector, reached to the highest price of $89.17 whereas the lowest price it dropped to was $86.98. The 52-week range on NVCR shows that it touched its highest point at $120.03 and its lowest point at $56.39 during that stretch. It currently has a 1-year price target of $104.43. Beta for the stock currently stands at 0.78.

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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 NVCR was down-trending over the past week, with a drop of -7.53%, but this was up by 19.95% over a month. Three-month performance surged to 24.44% while six-month performance rose 17.61%. The stock gained 37.88% in the past year, while it has gained 20.64% so far this year. A look at the trailing 12-month EPS for NVCR yields -0.78 with Next year EPS estimates of -1.02. For the next quarter, that number is -0.30. This implies an EPS growth rate of -819.30% for this year and -22.90% for next year.

Float and Shares Shorts:

At present, 104.89 million NVCR shares are outstanding with a float of 103.79 million shares on hand for trading. On Oct 13, 2022, short shares totaled 7.96 million, which was 7.60% higher than short shares on Sep 14, 2022. In addition to Mr. William F. Doyle as the firm’s Exec. Chairman, Mr. Asaf Danziger serves as its Pres, CEO & Director.


Institutional Ownership:

Through their ownership of 78.51% of NVCR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.48% of NVCR, in contrast to 35.04% held by mutual funds. Shares owned by individuals account for 23.23%. As the largest shareholder in NVCR with 14.62% of the stake, Fidelity Management & Research Co holds 15,339,821 shares worth 15,339,821. A second-largest stockholder of NVCR, Capital Research & Management Co, holds 12,788,239 shares, controlling over 12.19% of the firm’s shares. Baillie Gifford & Co. is the third largest shareholder in NVCR, holding 8,914,191 shares or 8.49% stake. With a 6.69% stake in NVCR, the American Funds Growth Fund of Ame is the largest stakeholder. A total of 7,023,727 shares are owned by the mutual fund manager. The Fidelity Growth Company Fund, which owns about 4.50% of NVCR stock, is the second-largest Mutual Fund holder. It holds 4,718,471 shares valued at 346.1 million. American Funds Small Cap World Fu holds 3.45% of the stake in NVCR, owning 3,621,597 shares worth 265.64 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NVCR since 8 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 0 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 NVCR analysts setting a high price target of $200.00 and a low target of $42.00, the average target price over the next 12 months is $102.15. Based on these targets, NVCR could surge 126.01% to reach the target high and fall by -52.54% to reach the target low. Reaching the average price target will result in a growth of 15.44% 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. NVCR will report FY 2022 earnings on 02/22/2024. Analysts have provided yearly estimates in a range of -$0.76 being high and -$0.98 being low. For NVCR, this leads to a yearly average estimate of -$0.82. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. NovoCure Limited surprised analysts by $0.01 when it reported -$0.25 EPS against a consensus estimate of -$0.26. The surprise factor in the prior quarter was -$0.09. Based on analyst estimates, the high estimate for the next quarter is -$0.24 and the low estimate is -$0.45. The average estimate for the next quarter is thus -$0.31.

Summary of Insider Activity:

Insiders traded NVCR stock several times over the past three months with 2 Buys and 0 Sells. In these transactions, 8,830 shares were bought while 0 shares were sold. The number of buy transactions has increased to 24 while that of sell transactions has risen to 57 over the past year. The total number of shares bought during that period was 158,293 while 117,629 shares were sold.

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