Novo Nordisk A/S (NYSE:NVO) Trading Down 2.5% on Analyst Downgrade

Novo Nordisk A/S (NYSE:NVO) traded down 2.5% during mid-day trading on Tuesday after Kepler Capital Markets downgraded the stock from a buy rating to a hold rating. The company traded as low as $38.36 and last traded at $38.6380. 43,682,974 shares traded hands during trading, an increase of 68% from the average session volume of 26,023,152 shares. The stock had previously closed at $39.63.

Several other equities analysts also recently issued reports on the stock. HSBC reissued a “hold” rating and set a $54.00 price target on shares of Novo Nordisk A/S in a report on Wednesday, December 10th. Citigroup initiated coverage on Novo Nordisk A/S in a report on Tuesday, January 27th. They issued a “neutral” rating on the stock. The Goldman Sachs Group reaffirmed a “buy” rating on shares of Novo Nordisk A/S in a report on Thursday, January 22nd. Deutsche Bank Aktiengesellschaft downgraded Novo Nordisk A/S from a “buy” rating to a “hold” rating in a research report on Monday. Finally, CICC Research initiated coverage on Novo Nordisk A/S in a report on Friday, January 9th. They set an “outperform” rating and a $73.50 target price on the stock. Six equities research analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $56.07.

Key Novo Nordisk A/S News

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

Hedge Funds Weigh In On Novo Nordisk A/S

Several large investors have recently made changes to their positions in the company. Franklin Resources Inc. increased its position in Novo Nordisk A/S by 4,190.8% in the third quarter. Franklin Resources Inc. now owns 13,984,789 shares of the company’s stock worth $776,016,000 after purchasing an additional 13,658,867 shares during the period. Capital International Investors boosted its stake in shares of Novo Nordisk A/S by 52.4% in the 3rd quarter. Capital International Investors now owns 17,713,424 shares of the company’s stock valued at $982,969,000 after purchasing an additional 6,092,192 shares during the last quarter. Boston Partners acquired a new stake in shares of Novo Nordisk A/S during the 3rd quarter worth approximately $310,199,000. Price T Rowe Associates Inc. MD raised its stake in shares of Novo Nordisk A/S by 99.7% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 9,688,262 shares of the company’s stock worth $492,940,000 after buying an additional 4,836,285 shares during the last quarter. Finally, Voloridge Investment Management LLC raised its stake in shares of Novo Nordisk A/S by 851.6% during the fourth quarter. Voloridge Investment Management LLC now owns 4,807,279 shares of the company’s stock worth $244,594,000 after buying an additional 4,302,126 shares during the last quarter. Institutional investors and hedge funds own 11.54% of the company’s stock.

Novo Nordisk A/S Price Performance

The firm has a market capitalization of $172.52 billion, a price-to-earnings ratio of 11.13 and a beta of 0.67. 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 company’s fifty day moving average is $53.35 and its two-hundred day moving average is $53.14.

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

Novo Nordisk A/S Dividend Announcement

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