NovoCure (NASDAQ:NVCR) Shares Gap Up on Better-Than-Expected Earnings

NovoCure Limited (NASDAQ:NVCR)’s stock price gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $19.99, but opened at $20.68. NovoCure shares last traded at $19.6050, with a volume of 406,982 shares.

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 during the quarter, compared to the consensus estimate of $172.44 million. During the same period last year, the company earned ($0.36) EPS. The company’s revenue for the quarter was up 15.6% on a year-over-year basis.

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.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on NVCR. Wells Fargo & Company upped their price objective on NovoCure from $13.50 to $17.00 and gave the company an “equal weight” rating in a report on Monday, May 4th. JPMorgan Chase & Co. assumed coverage on NovoCure in a research report on Monday, July 13th. They set a “neutral” rating and a $17.00 price objective for the company. Wedbush boosted their price objective on shares of NovoCure from $18.00 to $20.00 and gave the company a “neutral” rating in a report on Friday. Zacks Research cut shares of NovoCure from a “hold” rating to a “strong sell” rating in a research report on Tuesday, July 14th. Finally, Weiss Ratings raised shares of NovoCure from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Monday, June 1st. Two research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, NovoCure presently has an average rating of “Hold” and a consensus price target of $21.20.

Insider Activity

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

Hedge Funds Weigh In On NovoCure

Several institutional investors have recently modified their holdings of the business. Empowered Funds LLC purchased a new stake in shares of NovoCure during the fourth quarter worth $33,000. Kestra Advisory Services LLC purchased a new position in NovoCure in the fourth quarter valued at $49,000. Larson Financial Group LLC boosted its holdings in NovoCure by 662.1% in the third quarter. Larson Financial Group LLC now owns 4,100 shares of the medical equipment provider’s stock valued at $53,000 after purchasing an additional 3,562 shares during the period. Mirae Asset Global Investments Co. Ltd. grew its stake in NovoCure by 25.9% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,442 shares of the medical equipment provider’s stock worth $70,000 after purchasing an additional 1,120 shares in the last quarter. Finally, Acadian Asset Management LLC purchased a new stake in NovoCure during the 1st quarter worth about $87,000. Institutional investors and hedge funds own 84.61% of the company’s stock.

NovoCure Trading Down 11.7%

The company has a current ratio of 2.90, a quick ratio of 2.70 and a debt-to-equity ratio of 0.71. The company has a market cap of $2.04 billion, a PE ratio of -13.58 and a beta of 0.94. The company has a fifty day simple moving average of $16.64 and a two-hundred day simple moving average of $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.