Heavy Volume And Pre-Market Movement For Novo Nordisk A/S (NVO)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Novo Nordisk A/S ( NVO) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Novo Nordisk A/S as such a stock due to the following factors:

  • NVO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $81.3 million.
  • NVO traded 235,900 shares today in the pre-market hours as of 8:35 AM, representing 12.1% of its average daily volume.

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More details on NVO:

Novo Nordisk A/S engages in the discovery, development, manufacture, and marketing of pharmaceutical products primarily in Denmark. It operates in two segments, Diabetes Care and Biopharmaceuticals. The stock currently has a dividend yield of 1.1%. NVO has a PE ratio of 4.0. Currently there is 1 analyst that rates Novo Nordisk A/S a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Novo Nordisk A/S has been 1.5 million shares per day over the past 30 days. Novo Nordisk A/S has a market cap of $91.7 billion and is part of the health care sector and drugs industry. Shares are up 7.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Novo Nordisk A/S as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • NVO's revenue growth has slightly outpaced the industry average of 1.0%. Since the same quarter one year prior, revenues slightly increased by 6.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • NVO's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.18, which illustrates the ability to avoid short-term cash problems.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Pharmaceuticals industry and the overall market, NOVO NORDISK A/S's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 196.84% to $1,060.73 million when compared to the same quarter last year. In addition, NOVO NORDISK A/S has also vastly surpassed the industry average cash flow growth rate of -25.84%.
  • The net income growth from the same quarter one year ago has exceeded that of the Pharmaceuticals industry average, but is less than that of the S&P 500. The net income increased by 8.9% when compared to the same quarter one year prior, going from $1,085.33 million to $1,181.79 million.

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