Novartis (NYSE:NVS) Reaches New 12-Month High – Should You Buy?

Novartis AG (NYSE:NVS)’s share price reached a new 52-week high during trading on Tuesday . The company traded as high as $157.57 and last traded at $156.94, with a volume of 2430294 shares trading hands. The stock had previously closed at $156.42.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the stock. JPMorgan Chase & Co. raised shares of Novartis from a “neutral” rating to an “overweight” rating in a research report on Monday, December 8th. Barclays upgraded Novartis from an “underweight” rating to an “equal weight” rating in a research note on Tuesday, January 6th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Novartis in a research note on Friday, January 16th. Jefferies Financial Group reiterated a “hold” rating on shares of Novartis in a research report on Monday, October 27th. Finally, Morgan Stanley reiterated an “overweight” rating on shares of Novartis in a research note on Wednesday, December 3rd. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $119.75.

Novartis Trading Up 0.3%

The company has a quick ratio of 0.89, a current ratio of 1.12 and a debt-to-equity ratio of 0.60. The company’s 50-day moving average is $141.28 and its 200 day moving average is $131.28. The company has a market cap of $331.52 billion, a price-to-earnings ratio of 21.92, a price-to-earnings-growth ratio of 2.35 and a beta of 0.50.

Novartis (NYSE:NVS) last posted its earnings results on Wednesday, February 4th. The company reported $2.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.99 by $0.04. The business had revenue of $524.00 million for the quarter, compared to analyst estimates of $13.85 billion. Novartis had a net margin of 25.65% and a return on equity of 40.53%. The company’s revenue for the quarter was up 1.4% on a year-over-year basis. During the same period in the prior year, the company posted $1.98 EPS. Research analysts predict that Novartis AG will post 8.45 EPS for the current year.

Novartis Announces Dividend

The business also recently declared an annual dividend, which will be paid on Monday, March 16th. Investors of record on Wednesday, March 11th will be paid a $4.773 dividend. The ex-dividend date of this dividend is Wednesday, March 11th. This represents a yield of 312.0%. Novartis’s dividend payout ratio (DPR) is currently 36.31%.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Roundview Capital LLC increased its stake in Novartis by 2.5% during the 4th quarter. Roundview Capital LLC now owns 2,711 shares of the company’s stock worth $374,000 after buying an additional 66 shares in the last quarter. Abundance Wealth Counselors boosted its stake in shares of Novartis by 0.4% in the fourth quarter. Abundance Wealth Counselors now owns 16,927 shares of the company’s stock worth $2,334,000 after acquiring an additional 73 shares during the last quarter. Atlantic Edge Private Wealth Management LLC increased its position in shares of Novartis by 3.5% during the fourth quarter. Atlantic Edge Private Wealth Management LLC now owns 2,230 shares of the company’s stock worth $307,000 after purchasing an additional 75 shares in the last quarter. South Plains Financial Inc. grew its holdings in shares of Novartis by 39.0% during the third quarter. South Plains Financial Inc. now owns 271 shares of the company’s stock worth $35,000 after buying an additional 76 shares in the last quarter. Finally, Valmark Advisers Inc. lifted its stake in shares of Novartis by 0.9% in the fourth quarter. Valmark Advisers Inc. now owns 8,802 shares of the company’s stock worth $1,214,000 after buying an additional 77 shares in the last quarter. Institutional investors and hedge funds own 13.12% of the company’s stock.

About Novartis

Novartis is a Swiss multinational pharmaceutical company headquartered in Basel that researches, develops, manufactures and commercializes prescription medicines and related health-care products. Formed through the 1996 merger of Ciba-Geigy and Sandoz, Novartis operates globally and focuses on bringing therapeutics from discovery through clinical development to commercial markets worldwide.

The company’s activities center on innovative pharmaceuticals across several therapeutic areas, including oncology, immunology, cardiovascular and metabolic diseases, neuroscience and ophthalmology, alongside capabilities in advanced therapies such as biologics, cell and gene therapies.