Danish drugmaker Novo Nordisk (NYSE:NVO) has been reprimanded (an official statement of disapproval) by UK regulators for not disclosing around £7.8 million ($9.97 million) in payments to individuals and organizations in Britain from 2020 to 2022. Nevertheless, shares are up over 2% at the time of writing.
This reprimand by the Prescription Medicines Code of Practice Authority (PMCPA) followed Novo’s voluntary admission about the payments, which involved over 150 entities, including fees and expenses to health professionals and sponsorships to healthcare organizations.
In 2023, Novo admitted to these undisclosed payments due to human error in categorizing them in finance systems and accepted the PMCPA’s criticism. Interestingly, Novo was suspended from the Association of the British Pharmaceutical Industry for two years over similar breaches.
Investor Sentiment for NVO Stock
The sentiment among TipRanks investors is currently very positive, which is unsurprising when considering that shares are up over 80% over the past 12 months. Out of the 743,899 portfolios tracked by TipRanks, 1.6% hold NVO stock. In addition, the average portfolio weighting allocated towards NVO among those who do have a position is 5.28%. This suggests that investors of the company are fairly confident about its future.
Furthermore, in the last 30 days, 6.3% of those holding the stock increased their positions. As a result, the stock’s sentiment is above the sector average, as demonstrated in the following image:
Is Novo Nordisk a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NVO stock based on six Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVO price target of $142.36 per share implies 2.51% upside potential.
