Novan’s (NOVN) Buy Rating Reiterated at HC Wainwright

Novan (NASDAQ:NOVN)‘s stock had its “buy” rating reiterated by analysts at HC Wainwright in a research note issued on Tuesday. They currently have a $8.00 price target on the stock. HC Wainwright’s price target indicates a potential upside of 205.34% from the stock’s previous close.

The analysts wrote, “We eagerly anticipate, any day now, data from the Phase 2 dose-ranging study of SB206—topical nitric oxide (NO) gel—for molluscum contagiosum. We see molluscum as a large, underserved pediatric dermatology opportunity, with no FDA approved Rx treatments, and it is currently the key contributor to our Novan valuation. If Phase 2 is positive, with SB206 demonstrating meaningful molluscum lesion clearance rates at 12-weeks and good tolerability, it should be a transformational catalyst for Novan. Note that the only molluscum comparable, Verrica Pharmaceuticals (VRCA; not rated), which has positive open-label molluscum Phase 2 data and Phase 3 expected in 1Q19, has a $350M market cap—dramatically higher than Novan’s current $68M market cap.””

A number of other analysts have also recently commented on NOVN. Piper Jaffray Companies reaffirmed a “buy” rating and set a $6.00 price target on shares of Novan in a research report on Friday, July 20th. Zacks Investment Research raised shares of Novan from a “hold” rating to a “buy” rating and set a $3.00 price target on the stock in a research report on Saturday, August 25th. Two equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. Novan presently has an average rating of “Buy” and an average target price of $7.75.

Shares of NOVN opened at $2.62 on Tuesday. The firm has a market cap of $66.40 million, a price-to-earnings ratio of -1.13 and a beta of 1.17. Novan has a 12 month low of $2.27 and a 12 month high of $6.69.

Novan (NASDAQ:NOVN) last issued its quarterly earnings results on Wednesday, August 8th. The company reported ($0.29) EPS for the quarter, beating the Zacks’ consensus estimate of ($0.35) by $0.06. The business had revenue of $0.65 million for the quarter, compared to analysts’ expectations of $0.60 million. Novan had a negative net margin of 1,061.54% and a negative return on equity of 608.09%. On average, equities research analysts expect that Novan will post -1.07 EPS for the current fiscal year.

In related news, Director John W. Palmour acquired 20,000 shares of the business’s stock in a transaction dated Wednesday, August 22nd. The shares were bought at an average price of $2.66 per share, with a total value of $53,200.00. Following the transaction, the director now directly owns 273,568 shares of the company’s stock, valued at $727,690.88. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Robert Alexander Ingram acquired 50,000 shares of the business’s stock in a transaction dated Friday, September 28th. The shares were bought at an average cost of $2.84 per share, for a total transaction of $142,000.00. Following the transaction, the director now directly owns 119,777 shares in the company, valued at $340,166.68. The disclosure for this purchase can be found here. Insiders have bought a total of 110,000 shares of company stock worth $303,800 in the last three months. Insiders own 8.83% of the company’s stock.

A hedge fund recently raised its stake in Novan stock. Renaissance Technologies LLC lifted its stake in shares of Novan Inc (NASDAQ:NOVN) by 83.2% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 59,000 shares of the company’s stock after purchasing an additional 26,800 shares during the quarter. Renaissance Technologies LLC owned about 0.23% of Novan worth $173,000 at the end of the most recent reporting period. Institutional investors and hedge funds own 11.67% of the company’s stock.

About Novan

Novan, Inc, a clinical-stage biotechnology company, focuses on the development and commercialization of nitric oxide-based therapies to treat dermatological and oncovirus-mediated diseases. Its clinical stage product candidates include SB204, a topical monotherapy that is in Phase III pivotal clinical trials for the treatment of acne vulgaris; and SB206, a topical antiviral gel, which is in Phase III pivotal trials for the treatment of patients with external genital warts, and Phase II clinical trial for the treatment of molluscum contagiosum.

Further Reading: Hedge Funds Explained

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