Market Whiplash: Novo Nordisk’s Share Price Sees Wild Swings
A Tale of Two Days: Novo Nordisk’s Stock Plunges After Soaring High
In a dramatic turn of events, Danish pharmaceutical giant Novo Nordisk’s shares plummeted to a 9-month low on Thursday, erasing gains made just a day prior. The company’s underwhelming guidance for 2025 overshadowed its impressive sales growth for Wegovy, its popular weight-loss drug.
A Rollercoaster Ride for Investors
The stock’s wild swings saw it trade in a staggering 14-percentage-point range from low to high over the two-day period. On Thursday morning, Novo Nordisk’s shares were down 3% in Copenhagen, having earlier fallen 5.5% to its lowest point since January.
Guidance Disappoints
During an analyst call on Wednesday, Novo Nordisk’s finance chief Karsten Munk Knudsen revealed that sales growth next year could be in the high teens, which failed to impress investors. According to Barclays, the commentary on 2025 weighed heavily on the shares. Analyst Emily Field noted that the midpoint for FY25 top line could be lower than current company consensus, affirming her overweight rating on the stock.
US-Listed Shares Bounce Back
Meanwhile, US-listed Novo Nordisk shares were up 1.6% in premarket trading on Thursday, recovering some of the 4% loss from the previous session.
Hedge Funds in the Spotlight
Gilles Guibout, head of European equity strategies at AXA Investment Managers, attributed the sharp moves in Novo Nordisk’s shares to hedge fund action. “Novo Nordisk is a widely held stock… it’s easier to find sellers than buyers for the stock, as everyone already holds plenty of it,” he explained.
Valuation Concerns
Novo Nordisk shares have fallen almost 30% from their record high set in June, despite being up around 4% this year. The stock trades at a 27 times its expected earnings, a 22% premium to its 20-year average valuation. With a market capitalization of around $470 billion, investors are keeping a close eye on the company’s performance.
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