Novo Nordisk A/S (NVO) Shares: Are They Risky Or Cheap?


Novo Nordisk A/S (NYSE:NVO) finished Wednesday with a subtraction of -$0.24 to close at $99.22, a downside of -0.24 percent. An average of 1,234,740 shares of common stock have been traded in the last five days. There was a fall of -$5.82 in the past week, and it reached a new high 17 times over the past 12 months. The last 20 days have seen an average of 1,805,425 shares traded, while the 50-day average volume stands at 1,755,444.

NVO stock has decreased by -7.75% in the last month. The company shares reached their 1-month lowest point of $98.64 on 09/20/22. With the stock rallying to its 52-week high on 04/07/22, shares of the company touched a low of $91.51 and a high of $122.16 in 52 weeks. It has reached a new high 9 times so far this year and lost -11.41% or -$12.78 in price. In spite of this, the price is down -18.78% from the 52-week high.

Top 5 Cheap Stocks to Own Right Now

While finding safe stocks with the potential for monster gains isn't always easy, we've found a few that could pay out well. In fact, within our report, "Top 5 Cheap Stock to Own Right Now", we have identified five stocks we believe could appreciate the most even if you just have $1,000 to invest.

Sign up here to get your free report now. .


Valuation Metrics

Novo Nordisk A/S (NVO) has a trailing price-to-earnings (P/E) ratio of 33.46. The stock’s beta is 0.49. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 8.32, the price-to-book (PB) ratio at 22.50, and the price-to-cash flow ratio at 37.20.

The company has a payout ratio of 364.80%. The company’s most recent quarterly dividend payment was $0.5836 a share, representing a down of -21.24% from $0.7410 last year. Its latest decrease dividend $0.1575 reported on Friday August 5 2022.

Financial Health

The quick ratio of Novo Nordisk A/S for the three months ended March 30 was 0.70, and the current ratio was 0.90, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.32 and a total debt to equity ratio of 0.34 for the quarter ending March 30. Its gross profit as reported stood at $18.64 billion compared to revenue of $22.4 billion.

Earnings Surprise

The analyst consensus anticipated Novo Nordisk A/S’s latest quarter earnings to come in at $0.79 per share, but it turned out to be $0.84, a 6.30% surprise. For the quarter, EBITDA amounted to $2.85 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Novo Nordisk A/S (NVO) price momentum. RSI 9-day as of the close on 21 September was 29.69%, suggesting the stock is oversold, with historical volatility in this time frame at 24.58%.

As of today, NVO’s price is $100.91 -5.54% or -$5.82 from its 5-day moving average. NVO is currently trading -6.90% lower than its 20-day SMA and -9.96% lower than its 100-day SMA. However, the stock’s current price level is -8.83% below the SMA50 and -7.34% below the SMA200.

The stochastic %K and %D were 9.02% and 11.95%, respectively, and the average true range (ATR) was 2.46. With the 14-day stochastic at 4.98% and the average true range at 2.54, the RSI (14) stands at 35.60%. The stock has reached -3.75 on the 9-day MACD Oscillator while the 14-day reading was at -3.91.

Analyst Ratings

Morgan Stanley upgraded Novo Nordisk A/S (NYSE: NVO) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as an Equal-weight. The consensus rating for Novo Nordisk A/S (NVO) among analysts is Overweight. According to current brokerage recommendations, 3 brokerage firms advise that investors sell NVO, while 8 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 3 analysts, while 14 others rate it as a “buy”.


Please enter your comment!
Please enter your name here