NVO stock: buy or sell?

NVO stock price: $57.28 -1.05% At close on November 15th, 2019

Updated on:
November 15th, 2019

5

After yesterday all time highs, Novo Nordisk A/S depreciated a bit to $57.28.

Novo Nordisk A\u002FS, a healthcare company, engages in the discovery, development, manufacture, and marketing of pharmaceutical products worldwide.

Should I buy NVO stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Having a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, 2 buy setups are elegible for Novo Nordisk A/S stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Novo Nordisk A/S stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 11 ratings published for NVO stock in the last month.

Is NVO a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-17CitigroupNeutralBuy
2019-9-13Bank of American/aNeutral
2019-9-13Bank of American/aNeutral
2019-8-5Pareto SecuritiesHoldBuy
2019-8-30Jefferies Financial GroupHoldUnderperform
2019-6-20Deutsche BankBuyHold
2019-6-19UBS Groupn/aBuy
2019-6-11BarclaysUnderweightEqual Weight
2019-4-29Credit Suisse GroupNeutralOutperform
2019-2-4HandelsbankenBuyAccumulate
2019-2-1Morgan Stanleyn/aEqual Weight

NVO stock analysis

Daily outlook

After topping to all time highs on November 14th, Novo Nordisk A/S depreciated -1.05% to $57.28.

After topping to all time highs on Nov/14, Novo Nordisk A/S depreciated -1.05% to $57.28. On October 3rd NVO price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock. Since last July when SMA50d and SMA100d crossed up, NVO price gained $9.29 per share (19.36%). On November 14th, NVO hit new all time highs, pushing higher previous ATH of $57.93 recorded on Nov 8th. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

NVO stock chart (daily)

Weekly outlook

Novo Nordisk A/S shares set new all time highs back again this week, setting highs to $58.01. Shares closed at $57.28 and decreased -1.02% during the week. After 4 weeks soaring, this week declined a -1.04%.

In a weekly time frame, Novo Nordisk A/S stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, NVO might consolidate in a flat-base, waiting to break out over or down under . Since price and SMA40w lines crossed up by mid July, NVO climbed $10.16 (21.56%). Since SMA20d and SMA40w crossed up by mid March, NVO price climbed $8.78 per share (18.10%).

NVO stock chart (weekly)

NVO stock price history

NVO IPO was on April 30th, 1981 at $0.00 per share1. Since then, NVO stock surged a inf%, with a yearly average of inf%. If you had invested $1,000 in NVO stock in 1981, it would worth $inf today.

1: Adjusted price after possible price splits or reverse-splits.

NVO stock historical price chart

NVO stock reached all-time highs on November/14 with a price of $58.01.

NVO stock price target is $300.90

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 4 price forecasts for Novo Nordisk A/S stock:
NVO stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-13Bank of AmericaReiterates$355.00$400.0012.7%
2019-9-13Bank of AmericaRaises Target$355.00$400.0012.7%
2019-6-19UBS GroupReiteratesn/a$355.00-
2019-2-4HandelsbankenDowngradesn/a$48.61-
(in average)$355.00$300.90-15.0%
Moving in a range from $400.00 and $48.61, the price prediction for NVO stock is $300.90. In average, analysts' outlook on NVO price forecast is negative, downsizing the target by a -15.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Novo Nordisk A/S disappointed analysts on February when it published an Earnings per Share (EPS) of $0.54 when the analysts' forecast was $0.57.
NVO earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a4.06n/a
2017-Q2-n/a4.01n/a
2017-Q3-n/a3.96n/a
2017-Q4-n/a3.35n/a
2018-Q12018-05-020.690.735.8%
2018-Q22018-08-080.640.686.3%
2018-Q32018-11-010.580.580.0%
2018-Q42019-02-010.570.54-5.3%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Novo Nordisk A/S annual sales remained constant a neutral 0.12% to $111,831.00 million dollars from $111,696.00 marked in 2017. Aligned with this, its earnings margin (compared to sales) stayed steady to 34.54%, that is $38,628.00 million.

NVO annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$83,570 M-$25,180 M30.1%-
2014$14,427 M-82.74%$4,302 M29.8%-82.92%
2015$107,927 M648.09%$34,860 M32.3%710.33%
2016$111,780 M3.57%$37,925 M33.9%8.79%
2017$111,696 M-0.08%$38,130 M34.1%0.54%
2018$111,831 M0.12%$38,628 M34.5%1.31%

Quarterly financial results

Novo Nordisk A/S reported $29,732.00 million in sales for 2018-Q4, a 7.10% up compared to previous quarter. Reported quarter earnings marked $8,497.00 M with a profit margin of 28.58%. Profit margin decreased a -3.97% compared to previous quarter when profit margin was 32.55%. When comparing turnover to same quarter last year, Novo Nordisk A/S sales marked an exceptional increase and boosted a 559.07%. Looking back to recent quarterly results, Novo Nordisk A/S posted 5 positive quarters in a row.
NVO quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$28,450 M-$10,160 M35.7%-
2017-Q2$28,640 M0.67%$9,950 M34.7%-2.07%
2017-Q3$4,200 M-85.34%$1,542 M36.7%-84.51%
2017-Q4$4,511 M7.42%$1,330 M29.5%-13.73%
2018-Q1$26,930 M496.96%$10,751 M39.9%708.32%
2018-Q2$27,407 M1.77%$10,343 M37.7%-3.79%
2018-Q3$27,762 M1.30%$9,037 M32.6%-12.63%
2018-Q4$29,732 M7.10%$8,497 M28.6%-5.98%

Novo Nordisk A/S ownership

When you are planning to invest in a stock, it's worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Novo Nordisk A/S, 0.02% of all outstanding shares are owned by its staff.

In case of Novo Nordisk A/S stock, 9.41% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for NVO stock account 0.00%, no big difference from last month.

For a better understanding, the next table shows ownership data compared to other related companies:

NVOBMYLLYPFESNY
Market cap$135.2 B$95.5 B$108.7 B$206.2 B$115.7 B
Total shares2,360.0 M1,630.0 M960.1 M5,530.0 M2,510.0 M
Float shares1,680.0 M1,630.0 M842.1 M5,520.0 M2,230.0 M
  - Institutional holdings (%)9.4%75.0%81.5%76.2%7.7%
  - Insider holdings (%)0.0%0.1%0.1%0.0%0.0%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

NVO summary

Friday, November 15th, 2019
Open$57.54
Close$57.28
Day range$57.25 - $57.75
Previous close$57.89
Session gain-1.05%
Average true range$0.89
50d mov avg$53.16
100d mov avg$51.60
200d mov avg$50.29
Daily pattern
Weekly pattern lt06a

Novo Nordisk A/S performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare Novo Nordisk A/S performance to Bristol-Myers Squibb, Eli Lilly and, Pfizer and :
Stock3m6m12m
NVO10.88%23.50%32.84%
BMYBristol-Myers Squ...25.76%27.23%12.09%
LLYEli Lilly and3.00%-1.32%1.68%
PFEPfizer8.62%-8.38%-11.13%
SNY9.73%10.05%6.51%

Novo Nordisk A/S competitors

One check before trading any stock is to have a look a list of its competitors, in this case for Novo Nordisk A/S. We selected 4 companies as Novo Nordisk A/S competitors as they are in the same industry or have similar market objectives.

Latest NVO stock news