Novartis (NYSE:NVS) Sees Strong Trading Volume on Earnings Beat

Shares of Novartis AG (NYSE:NVS) saw unusually-strong trading volume on Tuesday after the company announced better than expected quarterly earnings. Approximately 1,016,056 shares traded hands during trading, a decline of 24% from the previous session’s volume of 1,330,854 shares.The stock last traded at $112.16 and had previously closed at $115.63.

The company reported $2.06 EPS for the quarter, topping analysts’ consensus estimates of $1.94 by $0.12. The firm had revenue of $12.82 billion for the quarter, compared to the consensus estimate of $12.62 billion. Novartis had a return on equity of 34.56% and a net margin of 33.76%. During the same quarter in the prior year, the business earned $1.74 earnings per share.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. Jefferies Financial Group lowered shares of Novartis from a “buy” rating to a “hold” rating in a report on Tuesday, September 3rd. Bank of America cut shares of Novartis from a “buy” rating to a “neutral” rating and cut their price objective for the company from $135.00 to $130.00 in a report on Wednesday, September 11th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating on shares of Novartis in a research note on Friday, July 19th. The Goldman Sachs Group restated a “neutral” rating and issued a $121.00 price target (up previously from $119.00) on shares of Novartis in a research note on Thursday, September 5th. Finally, BMO Capital Markets increased their price target on Novartis from $118.00 to $120.00 and gave the stock a “market perform” rating in a research report on Wednesday. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, Novartis currently has an average rating of “Hold” and a consensus target price of $121.50.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of NVS. Clearstead Trust LLC increased its stake in Novartis by 73.5% during the 1st quarter. Clearstead Trust LLC now owns 269 shares of the company’s stock worth $26,000 after buying an additional 114 shares in the last quarter. New Millennium Group LLC purchased a new stake in shares of Novartis in the second quarter valued at approximately $28,000. Lynx Investment Advisory purchased a new stake in shares of Novartis in the second quarter valued at approximately $29,000. Industrial Alliance Investment Management Inc. purchased a new position in Novartis during the second quarter worth approximately $30,000. Finally, Richardson Financial Services Inc. acquired a new position in Novartis during the second quarter worth $30,000. 13.12% of the stock is owned by hedge funds and other institutional investors.

Novartis Stock Performance

The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.72 and a current ratio of 0.93. The firm’s 50-day moving average price is $116.13 and its two-hundred day moving average price is $109.02. The stock has a market cap of $224.62 billion, a price-to-earnings ratio of 14.83, a PEG ratio of 1.65 and a beta of 0.57.

Novartis Company Profile

Novartis AG engages in the research, development, manufacture, and marketing of healthcare products in Switzerland and internationally. The company offers prescription medicines for patients and physicians. It focuses on therapeutic areas, such as cardiovascular, renal and metabolic, immunology, neuroscience, and oncology, as well as ophthalmology and hematology.