Stock price movements
Novartis (NVS) announced its first-quarter earnings results before the market opened on April 24. In the quarter, Novartis reported net sales from continuing operations of $11.11 billion, a YoY (year-over-year) rise of 2% on a reported basis and a rise of 7% on a constant currency basis.
The company reported a core operating income of $2.24 billion, a YoY fall of 5% on a reported basis but a rise of 4% on a constant currency basis. The company also reported core EPS of $1.21, a YoY rise of 5% on a reported basis and a rise of 13% on a constant currency basis. While Novartis managed to surpass analysts’ consensus core EPS estimate by $0.07, it missed analysts’ consensus revenue estimate by $650 million.
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Novartis is currently trading at ~$78.68, 3.66% higher than its previous day’s close. On April 23, Novartis stock stood at $75.90, 0.66% higher than its previous day’s close, 17.20% higher than its 52-week low of $64.76, and 12.02% lower than its 52-week high of $86.27. The company’s market cap is $197.95 billion, and its PE, forward PE, price-to-sales, price-to-book, and price-to-cash ratios are 14.11x, 13.52x, 3.72x, 2.23x, and 12.40x, respectively.
Novartis’s 14-day RSI (relative strength index) is currently 25.21. The company’s RSI being lower than 30 indicates that the stock is oversold and could correct upward.
The number of outstanding shares for Novartis is 2.51 billion, while its short float ratio is only 0.11%.
Analysts’ recommendations and target price
Wall Street analysts expect a potential upside of 27.80% for Novartis based on the company’s closing price on April 23. Analysts revised the company’s 12-month consensus target price downward from $106 in January to $104 in February and March and then to $97.00 in April.
Only one analyst covers the company and has recommended it as a “strong buy.”