Novo Nordisk AS (NYSE: NVO) will report third-quarter earnings on Wednesday. Wall Street expects 88 cents in EPS and $10.49 billion in revenues when the company reports after market hours.
The stock is up 8.55% over the last year and 7.45% year-to-date.
Novo Nordisk Stock Chart Bearish Ahead Of Q3 Earnings
Novo Nordisk's stock is showing strong bearish momentum, as its price of $108.76 sits below its five- 20- and 50-day exponential moving averages. This downward trend is accompanied by persistent selling pressure, suggesting potential for continued bearish movement.
With an eight-day simple moving average (SMA) of $111.67, a 20-day SMA of $115.16 and a 50-day SMA of $123.13 - all above the current price - technical indicators point to a bearish signal for NVO stock.
Additionally, the 200-day SMA at $128.29 further underscores the bearish outlook.
The Moving Average Convergence Divergence (MACD) indicator at a negative 3.44 signals downside momentum, while a Relative Strength Index (RSI) of 25.06 indicates oversold conditions, hinting that NVO stock may face further declines without substantial support or a shift in buying interest.
In a significant move to broaden its portfolio, Novo Nordisk has entered into a $285 million agreement with Denmark-based Ascendis Pharma AS (NYSE: ASND). This partnership grants Novo exclusive worldwide rights to Ascendis' TransCon technology, aiming to develop once-monthly GLP-1 receptor agonists for Type 2 diabetes and obesity - a step up from its weekly GLP-1 drugs.
The alliance also covers cardiovascular diseases, with Novo retaining the option to expand future metabolic treatments into additional therapeutic areas. Ascendis will lead early-stage development, while Novo handles the regulatory, manufacturing, and commercial phases.
The lead program in the partnership is a once-monthly GLP-1 drug, a potential game-changer for patients with metabolic disorders. Novo's recent clinical studies underscore the broader health impact of its GLP-1 treatments, showing reduced hospital admissions for heart disease in overweight patients, boosting investor confidence in the potential cardiovascular applications of the new drug.
Novo Nordisk Analysts See 46% Upside
The consensus analyst rating on Novo Nordisk stock stands at a Buy with a price target of $123.86. The latest analyst ratings for Novo Nordisk stock from BMO Capital and Cantor Fitzgerald give an average price target of $158.67, suggesting 45.78% upside potential.
As Novo Nordisk readies to share its third-quarter performance, the dual narratives of bearish technicals and bullish analyst ratings, combined with a groundbreaking new partnership, make the upcoming earnings call a highly anticipated event.
Price Action: Novo Nordisk stock closed the trading day Monday at $109.72, down 1.98%.