Novartis (NYSE:NVS) Shares Gap Up - Should You Buy?

Novartis AG (NYSE:NVS - Get Free Report)'s share price gapped up before the market opened on Thursday . The stock had previously closed at $110.77, but opened at $114.35. Novartis shares last traded at $113.39, with a volume of 399,463 shares.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on NVS. StockNews.com upgraded shares of Novartis from a "buy" rating to a "strong-buy" rating in a report on Saturday, February 8th. Morgan Stanley assumed coverage on Novartis in a research report on Wednesday, February 12th. They issued an "underweight" rating on the stock. Barclays reiterated an "underweight" rating on shares of Novartis in a research note on Monday, February 3rd. UBS Group reiterated a "neutral" rating on shares of Novartis in a research note on Thursday, February 13th. Finally, Deutsche Bank Aktiengesellschaft raised Novartis from a "hold" rating to a "buy" rating in a report on Tuesday, February 4th. Three analysts have rated the stock with a sell rating, six have issued a hold rating, one has issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $123.38.

Novartis Price Performance

The firm has a market capitalization of $210.37 billion, a PE ratio of 17.50, a P/E/G ratio of 1.70 and a beta of 0.56. The company has a 50-day moving average price of $109.02 and a 200-day moving average price of $106.92. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.04 and a quick ratio of 0.84.

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Novartis (NYSE:NVS - Get Free Report) last issued its quarterly earnings results on Friday, January 31st. The company reported $1.98 EPS for the quarter, topping analysts' consensus estimates of $1.80 by $0.18. Novartis had a net margin of 23.56% and a return on equity of 37.24%. Sell-side analysts forecast that Novartis AG will post 8.45 EPS for the current year.

Novartis Dividend Announcement

The firm also recently announced a dividend, which was paid on Wednesday, March 12th. Investors of record on Wednesday, March 12th were given a dividend of $3.8695 per share. The ex-dividend date of this dividend was Wednesday, March 12th. Novartis's dividend payout ratio (DPR) is presently 42.69%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Human Investing LLC acquired a new position in Novartis during the fourth quarter worth approximately $25,000. Raiffeisen Bank International AG purchased a new position in shares of Novartis in the 4th quarter worth $25,000. Nexus Investment Management ULC purchased a new stake in Novartis during the first quarter valued at about $25,000. Union Bancaire Privee UBP SA acquired a new stake in Novartis during the fourth quarter worth about $27,000. Finally, Legacy Investment Solutions LLC acquired a new position in shares of Novartis in the 3rd quarter valued at about $28,000. Institutional investors and hedge funds own 13.12% of the company's stock.

Novartis Company Profile

Novartis AG engages in the research, development, manufacture, and marketing of healthcare products in Switzerland and internationally. The company offers prescription medicines for patients and physicians. It focuses on therapeutic areas, such as cardiovascular, renal and metabolic, immunology, neuroscience, and oncology, as well as ophthalmology and hematology.