With a current price of $127.02, NovoCure Limited [NASDAQ:NVCR] is active in the Medical Instruments & Supplies industry, with a 5-day price swing of 14.11%.
For the year, the stock is trading 50.73%, while, as a point of reference, the S&P 500 is trading 1.71% YTD. Other data to note on this name is a price per sales number of 31.21 and a price per cash flow number of 596.46.
The Price is right
Holding a Market Cap of $12.76 billion, NovoCure Limited has seen a trading range over the last year of $53.40-$121.25.
For the last five days, NVCR is up from its last closing price. The average shares trading hands each day is 939.27K.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for NVCR. When we apply the Elder Force Index to NovoCure Limited, we are seeing an Elder Force Indicator number of 9162482.29.
The recent performance of the stock is another area that can tell traders how to proceed. NVCR is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 407.12.
In the last quarter, NVCR made a profit of 90.45 million. NovoCure Limited also saw quarter revenue growth year over year of 41.62%.
Looking at popular technical indicators, the company’s 5-day moving average is 117.89 compared to the 50-day moving average of 3.73%. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. NVCR currently holds a 9-day RSI of 88.96%, while 100-day RSI stands at 62.51%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. NVCR’s 9-day MACD is 7.47 and the company’s 100-day MACD stands at 44.43.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 16.00% by insiders and 70.48% by institutions. Regarding institutional holdings, FMR, LLC owns 10.33%, while the second top holder, Baillie Gifford and Company, currently owns 7.82%.
Over the last six months, insiders have sold 15,250 with the most recent transaction from Weinberg Uri, Chief Science Officer, with a sell at price 103.35 per share.
Overall, the recommended rating for NVCR is Moderate Buy. Currently, the company has 9 analysts watching the stock, and the average quarterly earnings estimate is 0.05. Quarterly revenue estimates are averaging 120.24M with the high estimate reaching 124.58M and the low at 114.7M.
To review, the current 1-year target estimate is sitting at 112.00, while the current price 127.02. Based on this, we expect some pullback on the stock over time given our above analysis.