Novo Nordisk A/S (NYSE:NVO) Stock Price Down 2.5% After Analyst Downgrade

Novo Nordisk A/S (NYSE:NVO) traded down 2.5% during 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 changed 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 research firms have also recently commented on NVO. Morgan Stanley restated an “underweight” rating and issued a $42.00 target price on shares of Novo Nordisk A/S in a research note on Wednesday, December 3rd. TD Cowen reiterated a “buy” rating on shares of Novo Nordisk A/S in a report on Tuesday, February 3rd. Jefferies Financial Group upgraded shares of Novo Nordisk A/S from an “underperform” rating to a “hold” rating in a report on Thursday, February 12th. Citigroup started coverage on shares of Novo Nordisk A/S in a research note on Tuesday, January 27th. They issued a “neutral” rating on the stock. Finally, Argus reissued a “hold” rating on shares of Novo Nordisk A/S in a research report on Monday, December 8th. Six 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, the stock has an average rating of “Hold” and a consensus price target of $56.07.

Key Headlines Impacting Novo Nordisk A/S

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

• Positive Sentiment: Positive clinical data from a separate program: a joint Phase 2 trial in China of triple‑agonist UBT251 showed up to 19.7% mean weight loss at 24 weeks, which supports pipeline diversification beyond semaglutide and could underpin long‑term growth if advanced. Triple-agonist UBT251 delivers up to 19.7% mean weight loss
• Neutral Sentiment: Novo announced it will cut U.S. list prices for Ozempic and Wegovy (to about $675/month) beginning January 2027 to improve insured patients’ access — this reduces headline list revenue but may broaden uptake, ease political/regulatory pressure and improve out‑of‑pocket affordability for many patients. Market impact is mixed and depends on net reimbursement and volume response. Novo Nordisk to cut US list prices of Ozempic, Wegovy as of 2027
• Negative Sentiment: Major near‑term negative: CagriSema failed to demonstrate non‑inferiority to Eli Lilly’s tirzepatide in the REDEFINE‑4 head‑to‑head Phase 3 trial, prompting a sharp share drop, analyst downgrades and a reassessment of Novo’s ability to defend/expand obesity market share vs. Lilly. That loss of competitive positioning is the primary driver of today’s weakness. Novo Nordisk downgraded by leading banks as CagriSema trial flops against Zepbound
• Negative Sentiment: Analyst and legal pressure: several brokers (Deutsche Bank, Kepler) cut ratings or price targets and investor litigation/investigation notices have appeared, amplifying downside sentiment and increasing uncertainty around guidance and long‑term forecasts. Analyst says he’s thrown in the towel on Novo Nordisk after latest setback

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in NVO. Lockheed Martin Investment Management Co. lifted its stake in Novo Nordisk A/S by 179.4% during the second quarter. Lockheed Martin Investment Management Co. now owns 43,450 shares of the company’s stock worth $2,999,000 after purchasing an additional 27,900 shares during the last quarter. Martin Capital Partners LLC boosted its stake in Novo Nordisk A/S by 53.8% in the third quarter. Martin Capital Partners LLC now owns 117,577 shares of the company’s stock valued at $6,524,000 after buying an additional 41,129 shares in the last quarter. Markel Group Inc. raised its stake in Novo Nordisk A/S by 4.9% during the third quarter. Markel Group Inc. now owns 2,368,649 shares of the company’s stock worth $131,436,000 after acquiring an additional 110,061 shares in the last quarter. Cantor Fitzgerald Investment Advisors L.P. acquired a new stake in shares of Novo Nordisk A/S in the 3rd quarter valued at approximately $1,294,000. Finally, WCM Investment Management LLC increased its position in Novo Nordisk A/S by 3.7% during the 3rd quarter. WCM Investment Management LLC now owns 2,732,182 shares of the company’s stock worth $151,636,000 after purchasing an additional 97,477 shares in the last quarter. 11.54% of the stock is owned by institutional investors and hedge funds.

Novo Nordisk A/S Stock Performance

The company has a debt-to-equity ratio of 0.61, a quick ratio of 0.57 and a current ratio of 0.80. The firm has a market cap of $172.52 billion, a P/E ratio of 11.13 and a beta of 0.67. The company’s 50 day moving average is $53.56 and its 200 day moving average is $53.23.

Novo Nordisk A/S (NYSE:NVO) last announced its quarterly earnings results on Tuesday, February 3rd. The company reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate 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 company had revenue of $12.43 billion during the quarter, compared to the consensus estimate of $11.97 billion. As a group, equities analysts predict that Novo Nordisk A/S will post 3.84 earnings per share for the current fiscal year.

Novo Nordisk A/S Announces Dividend

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