Novo Nordisk A/S (NYSE:NVO) Shares Down 8.2% – Here’s What Happened

Novo Nordisk A/S (NYSE:NVO) dropped 8.2% during mid-day trading on Thursday . The stock traded as low as $43.24 and last traded at $43.3150. Approximately 53,396,661 shares changed hands during trading, an increase of 102% from the average daily volume of 26,444,670 shares. The stock had previously closed at $47.19.

Trending Headlines about Novo Nordisk A/S

Here are the key news stories impacting Novo Nordisk A/S this week:

• Positive Sentiment: FDA says it will target mass-marketed, unapproved compounded drug copies, which reduces the competitive threat from low-cost copycats and helped lift sentiment. Novo Nordisk shares rebound as FDA targets illegal drug copies – Reuters
• Positive Sentiment: Some analysts view the recent selloff as overdone and argue NVO’s strong cash flow, first-mover Wegovy advantages and promising pipeline (CagriSema) make the pullback a buying opportunity for long-term holders. Novo Nordisk: The Selloff Is A Blessing In Disguise – Seeking Alpha
• Positive Sentiment: Novo has announced it will pursue legal action against Hims & Hers over compounded Wegovy copies — a defensive step that could limit spread of low-cost alternatives if successful. Novo Nordisk to take legal action against Hims & Hers for Wegovy compounding – Reuters
• Neutral Sentiment: Company disclosure shows trading by board members and executives — useful for monitoring insider behavior but not immediately directional. Trading in Novo Nordisk shares by board members, executives – GlobeNewswire
• Neutral Sentiment: Company declared a dividend (record/ex-dividend dates published) — supportive for income investors but not a cure for near-term volume/price headwinds.
• Negative Sentiment: Hims & Hers launched a $49–$99 compounded oral semaglutide offering, sharply undercutting Wegovy’s price and triggering market panic about pricing erosion and access to cheap compounding alternatives. Hims and Hers Health launches copy of Wegovy pill at $49 – Reuters
• Negative Sentiment: Citi warns that inability to curb compounded semaglutide use is a lingering risk to Novo’s pricing power and investor sentiment. Citi flags lingering risks to Novo despite strong weight-loss portfolio – Proactive Investors
• Negative Sentiment: Competitive dynamics: Eli Lilly’s strong guidance and manufacturing scale are shifting market share and investor preference toward Lilly, increasing near-term pressure on Novo’s revenue outlook. The Metabolic Split: Why Eli Lilly Soars as Novo Stumbles – MarketBeat
• Negative Sentiment: Regional weakness: Ozempic sales in greater China fell for the first time, highlighting geographic and competitive pressures. Novo reports first Ozempic sales drop in greater China region – Reuters

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Jefferies Financial Group started coverage on shares of Novo Nordisk A/S in a report on Monday, October 27th. They set an “underperform” rating on the stock. Citigroup began coverage on Novo Nordisk A/S in a report on Tuesday, January 27th. They issued a “neutral” rating for the company. Morgan Stanley reiterated an “underweight” rating and set a $42.00 price target on shares of Novo Nordisk A/S in a report on Wednesday, December 3rd. Weiss Ratings raised Novo Nordisk A/S from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday. Finally, CICC Research assumed coverage on Novo Nordisk A/S in a research note on Friday, January 9th. They set an “outperform” rating and a $73.50 target price on the stock. Seven research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $56.07.

Novo Nordisk A/S Price Performance

The company has a current ratio of 0.80, a quick ratio of 0.57 and a debt-to-equity ratio of 0.61. The company has a market capitalization of $213.03 billion, a price-to-earnings ratio of 13.75 and a beta of 0.67. The company has a 50 day moving average price of $53.61 and a 200 day moving average price of $53.94.

Novo Nordisk A/S (NYSE:NVO) last posted its quarterly earnings results on Wednesday, February 4th. The company reported $1.01 earnings per share for the quarter, topping analysts’ consensus estimates of $0.90 by $0.11. Novo Nordisk A/S had a net margin of 33.03% and a return on equity of 68.91%. The business had revenue of $12.43 billion during the quarter, compared to the consensus estimate of $11.97 billion. As a group, equities research analysts forecast that Novo Nordisk A/S will post 3.84 earnings per share for the current year.

Novo Nordisk A/S Announces Dividend

The business also recently disclosed a dividend, which will be paid on Wednesday, April 8th. Investors of record on Monday, March 30th will be paid a dividend of $1.2751 per share. The ex-dividend date of this dividend is Monday, March 30th. This represents a dividend yield of 541.0%. Novo Nordisk A/S’s payout ratio is 23.63%.

Hedge Funds Weigh In On Novo Nordisk A/S

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Jennison Associates LLC boosted its position in shares of Novo Nordisk A/S by 0.3% during the second quarter. Jennison Associates LLC now owns 18,885,343 shares of the company’s stock worth $1,303,466,000 after purchasing an additional 63,341 shares in the last quarter. Capital International Investors boosted its holdings in shares of Novo Nordisk A/S by 52.4% in the third quarter. Capital International Investors now owns 17,713,424 shares of the company’s stock valued at $982,969,000 after buying an additional 6,092,192 shares during the period. Franklin Resources Inc. raised its holdings in shares of Novo Nordisk A/S by 4,190.8% during the third quarter. Franklin Resources Inc. now owns 13,984,789 shares of the company’s stock worth $776,016,000 after acquiring an additional 13,658,867 shares during the period. Loomis Sayles & Co. L P lifted its position in Novo Nordisk A/S by 1.5% in the 2nd quarter. Loomis Sayles & Co. L P now owns 12,576,031 shares of the company’s stock valued at $867,998,000 after acquiring an additional 187,789 shares in the last quarter. Finally, Folketrygdfondet boosted its stake in Novo Nordisk A/S by 1.2% in the 3rd quarter. Folketrygdfondet now owns 10,211,913 shares of the company’s stock worth $566,659,000 after purchasing an additional 117,370 shares during the period. Institutional investors own 11.54% of the company’s stock.

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.