NovoCure (NASDAQ:NVCR) Hits New 1-Year High Following Strong Earnings

NovoCure Limited (NASDAQ:NVCR)’s share price hit a new 52-week high during trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $20.33 and last traded at $20.1390, with a volume of 912672 shares traded. The stock had previously closed at $15.57.

The medical equipment provider reported ($0.13) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.33) by $0.20. NovoCure had a negative return on equity of 44.02% and a negative net margin of 21.25%.The business had revenue of $183.58 million for the quarter, compared to the consensus estimate of $172.44 million. During the same quarter in the prior year, the business posted ($0.36) earnings per share. The firm’s quarterly revenue was up 15.6% compared to the same quarter last year.

Trending Headlines about NovoCure

Here are the key news stories impacting NovoCure this week:

• Positive Sentiment: NovoCure reported Q2 EPS of -$0.13, beating the consensus loss estimate of -$0.33, while revenue came in at $183.6 million versus expectations of $172.4 million. Revenue also rose 15.6% year over year, signaling improving business momentum.
• Positive Sentiment: The company raised its FY2026 revenue guidance to $710 million-$725 million, above the market’s prior expectation of about $704 million, which suggests management sees continued demand strength.
• Positive Sentiment: HC Wainwright increased its price target on NovoCure to $52 from $46 and maintained a Buy rating, reinforcing optimism around the company’s longer-term earnings potential. Article Title
• Neutral Sentiment: Wedbush also raised its price target to $20 from $18, but kept a Neutral rating, indicating improved expectations without a strong bullish call. Article Title
• Neutral Sentiment: Shares also got a lift from optimism around the company’s brain therapy pipeline and possible FDA-related catalysts, which helped push the stock to new highs as investors priced in further upside. Article Title
• Negative Sentiment: HC Wainwright trimmed its FY2029 EPS estimate slightly to $1.90 from $1.95, a small caution on the company’s very long-term earnings outlook.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the company. Wedbush increased their target price on NovoCure from $18.00 to $20.00 and gave the stock a “neutral” rating in a report on Friday. HC Wainwright set a $32.00 price objective on shares of NovoCure in a research report on Friday. Evercore reaffirmed an “outperform” rating on shares of NovoCure in a research report on Friday, May 1st. JPMorgan Chase & Co. assumed coverage on shares of NovoCure in a research note on Monday, July 13th. They set a “neutral” rating and a $17.00 price objective on the stock. Finally, Weiss Ratings raised shares of NovoCure from a “sell (e+)” rating to a “sell (d-)” rating in a report on Monday, June 1st. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, NovoCure presently has a consensus rating of “Hold” and a consensus target price of $21.20.

Insider Transactions at NovoCure

In related news, CEO Frank X. Leonard sold 34,273 shares of the company’s stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $17.93, for a total transaction of $614,514.89. Following the completion of the sale, the chief executive officer directly owned 459,520 shares in the company, valued at $8,239,193.60. This represents a 6.94% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jeryl L. Hilleman sold 2,945 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $15.77, for a total value of $46,442.65. Following the completion of the sale, the director directly owned 13,861 shares in the company, valued at $218,587.97. This trade represents a 17.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 51,943 shares of company stock worth $893,171. 5.52% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its stake in shares of NovoCure by 4.8% in the 4th quarter. Vanguard Group Inc. now owns 10,958,209 shares of the medical equipment provider’s stock valued at $141,690,000 after purchasing an additional 502,368 shares in the last quarter. Soleus Capital Management L.P. increased its position in NovoCure by 25.0% during the 2nd quarter. Soleus Capital Management L.P. now owns 6,904,302 shares of the medical equipment provider’s stock worth $122,897,000 after purchasing an additional 1,382,888 shares in the last quarter. Morgan Stanley increased its position in NovoCure by 453.4% during the 4th quarter. Morgan Stanley now owns 5,069,895 shares of the medical equipment provider’s stock worth $65,554,000 after purchasing an additional 4,153,741 shares in the last quarter. Quantinno Capital Management LP lifted its stake in NovoCure by 23.7% in the 1st quarter. Quantinno Capital Management LP now owns 2,487,376 shares of the medical equipment provider’s stock valued at $27,112,000 after purchasing an additional 477,128 shares during the last quarter. Finally, Balyasny Asset Management L.P. lifted its stake in NovoCure by 38.8% in the 2nd quarter. Balyasny Asset Management L.P. now owns 2,270,076 shares of the medical equipment provider’s stock valued at $40,407,000 after purchasing an additional 634,925 shares during the last quarter. Institutional investors own 84.61% of the company’s stock.

NovoCure Price Performance

The company has a debt-to-equity ratio of 0.71, a current ratio of 2.90 and a quick ratio of 2.70. The stock has a market cap of $2.04 billion, a price-to-earnings ratio of -13.58 and a beta of 0.94. The business’s 50-day simple moving average is $16.64 and its two-hundred day simple moving average is $14.14.

NovoCure Company Profile

NovoCure is a global oncology company pioneering Tumor Treating Fields (TTFields), a novel anti-mitotic therapy for solid tumors. The company’s non-invasive treatment platforms deliver low-intensity, alternating electric fields designed to disrupt cancer cell division. NovoCure’s approach offers an alternative modality to complement existing therapies in oncology, with a focus on hard-to-treat malignancies.

Founded in 2000 and headquartered in Haifa, Israel, NovoCure maintains a second operational center in Portsmouth, New Hampshire.