Novo Nordisk A/S (NYSE:NVO) Stock Price Down 16.3% After Analyst Downgrade

Novo Nordisk A/S (NYSE:NVO) shares dropped 16.3% during trading on Monday after Kepler Capital Markets downgraded the stock from a buy rating to a hold rating. The company traded as low as $39.34 and last traded at $39.6780. Approximately 98,255,744 shares were traded during mid-day trading, an increase of 285% from the average daily volume of 25,502,754 shares. The stock had previously closed at $47.42.

Other equities analysts have also issued reports about the company. CICC Research initiated coverage on Novo Nordisk A/S in a research report on Friday, January 9th. They set an “outperform” rating and a $73.50 price objective on the stock. Zacks Research downgraded shares of Novo Nordisk A/S from a “hold” rating to a “strong sell” rating in a research note on Monday, February 9th. Citigroup started coverage on shares of Novo Nordisk A/S in a research note on Tuesday, January 27th. They issued a “neutral” rating for the company. BMO Capital Markets reaffirmed a “market perform” rating on shares of Novo Nordisk A/S in a report on Thursday, February 5th. Finally, Jefferies Financial Group upgraded shares of Novo Nordisk A/S from an “underperform” rating to a “hold” rating in a research report on Thursday, February 12th. Six analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $56.07.

Novo Nordisk A/S News Roundup

Here are the key news stories impacting Novo Nordisk A/S this week:

• Positive Sentiment: Phase‑2 China trial: a joint Novo program (UBT251, a triple GLP‑1/GIP/glucagon agonist) reported up to ~19.7% mean weight loss at 24 weeks with a tolerable safety profile — a constructive signal for long‑term pipeline diversification beyond semaglutide. UBT251 Phase 2 China results
• Neutral Sentiment: Some investors and bullish analysts argue the market is overreacting to a single head‑to‑head miss and point to continued Wegovy/Ozempic international growth and upcoming oral options as offsetting factors. Seeking Alpha perspective
• Negative Sentiment: REDEFINE‑4 Phase‑3 miss: CagriSema failed to demonstrate non‑inferiority to Eli Lilly’s tirzepatide in an open‑label head‑to‑head, raising doubts about Novo’s ability to defend obesity market share against Lilly’s lead. This clinical setback is the primary catalyst for the recent sell‑off. CagriSema trial coverage
• Negative Sentiment: Price cuts: Novo announced plans to reduce U.S. list prices for Wegovy and Ozempic (up to ~50%, with headline pricing around $675/month starting Jan 2027), a move intended to improve access but likely to pressure list‑price revenue and margins. Price cut report
• Negative Sentiment: Analyst reactions and downgrades: multiple banks trimmed ratings/targets after the trial news, and coverage turned more cautious — amplifying selling pressure and repricing expectations for growth. Analyst downgrades coverage
• Negative Sentiment: Legal/investor scrutiny: law‑firm notices and investor inquiries have appeared following the clinical disclosure, representing an added reputational and potential financial overhang. Investor investigation notice

Institutional Trading of Novo Nordisk A/S

Large investors have recently modified their holdings of the business. SG Trading Solutions LLC bought a new position in Novo Nordisk A/S during the 4th quarter valued at approximately $401,000. Sunbelt Securities Inc. increased its stake in shares of Novo Nordisk A/S by 1.5% during the fourth quarter. Sunbelt Securities Inc. now owns 21,316 shares of the company’s stock valued at $1,085,000 after buying an additional 323 shares during the period. White Knight Strategic Wealth Advisors LLC bought a new position in shares of Novo Nordisk A/S during the fourth quarter valued at approximately $732,000. Hamilton Wealth LLC purchased a new stake in Novo Nordisk A/S in the fourth quarter worth $545,000. Finally, T. Rowe Price Investment Management Inc. bought a new stake in Novo Nordisk A/S in the fourth quarter valued at $41,000. 11.54% of the stock is owned by institutional investors.

Novo Nordisk A/S Trading Down 2.5%

The company has a quick ratio of 0.57, a current ratio of 0.80 and a debt-to-equity ratio of 0.61. The firm’s fifty day moving average is $53.35 and its two-hundred day moving average is $53.14. The firm has a market cap of $172.52 billion, a P/E ratio of 11.13 and a beta of 0.67.

Novo Nordisk A/S (NYSE:NVO) last posted its earnings results on Tuesday, February 3rd. The company reported $1.01 EPS for the quarter, topping the consensus estimate of $0.90 by $0.11. Novo Nordisk A/S had a net margin of 33.03% and a return on equity of 68.91%. The firm had revenue of $12.43 billion during the quarter, compared to analysts’ expectations of $11.97 billion. Analysts predict that Novo Nordisk A/S will post 3.84 earnings per share for the current fiscal year.

Novo Nordisk A/S Dividend Announcement

The company also recently announced a dividend, which will be paid on Wednesday, April 8th. Shareholders of record on Monday, March 30th will be issued a dividend of $1.2751 per share. The ex-dividend date is Monday, March 30th. This represents a dividend yield of 541.0%. Novo Nordisk A/S’s dividend payout ratio is 23.63%.

Novo Nordisk A/S Company Profile

Novo Nordisk A/S is a Danish multinational pharmaceutical company headquartered in Bagsværd, Denmark, best known for its leadership in diabetes care and metabolic health. The company traces its roots to early Danish insulin production in the 1920s and was established in its current form through a 1989 merger of predecessor companies. Novo Nordisk develops, manufactures and markets pharmaceutical products and devices that address chronic and serious diseases, with a strong emphasis on long-term treatment and patient support.

The company’s core product portfolio centers on diabetes therapies, including a range of insulins and modern incretin-based treatments.