Gains May Be On The Menu For Novan Inc. (NASDAQ: NOVN)


    The Vanguard Group, Inc. recently announced the acquisition of new stake in Novan Inc. (NASDAQ:NOVN). The institutional investor has increased its shareholding in the Healthcare company by 7.08% to 1.69 million shares with purchase of 0.11 million shares. This fresh investment now brings its stake to 0.96% valued currently at $1.12 million. In addition, Acadian Asset Management LLC raised its holdings by 0.55 million to 0.55 million shares.

    With over 9.14 million Novan Inc. (NOVN) shares trading Friday and a closing price of $0.49 on the day, the dollar volume was approximately $4.48 million. The shares have shown a negative weekly performance of -7.72% and its price on 08/21/20 lost nearly -0.85%. Currently, there are 137.47M common shares owned by the public and among those 124.81M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 1 analysts who have offered their price forecasts for NOVN have a consensus price objective of $3.00. The analysts have set the share’s price value over the next 12 months at a high of $4.50 and a low of $1.50 should the stock experience a downside. Incidentally, analysts’ outlook for the Novan Inc. stock is 2.50 for the next 12 months. But an upside of 89.11% will see the stock hit the forecast high price target while mean target price for the stock is $3.00.

    Insiders at the company have transacted a total of 2 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 2 of these insider trades were purchases, accounting for 207,000 shares. Insider sales of the common stock occurred on 0 occasions, with total insider shares sold totaling 0 shares.

    The top 3 mutual fund holders in Novan Inc. are Vanguard Total Stock Market Index, Vanguard Extended Market Index Fu, and Bridgeway Ultra Small Company Mar. Vanguard Total Stock Market Index owns 1.22 million shares of the company’s stock, all valued at over $0.81 million. Bridgeway Ultra Small Company Mar bought 0.35 million shares to bring its total holdings to over 0.35 million shares at a value of $0.23 million. Bridgeway Ultra Small Company Mar now owns shares totaling to 0.20% of the shares outstanding.

    Shares of Novan Inc. (NASDAQ: NOVN) opened at $0.479, down -$0.01 from a prior closing price of $0.49. However, the script later closed the day at $0.49, down -0.85%. The company’s stock has a 5-day price change of -7.72% and 21.16% over the past three months. NOVN shares are trading -84.53% year to date (YTD), with the 12-month market performance down to -80.13% lower. It has a 12-month low price of $0.22 and touched a high of $3.72 over the same period. Currently, 9.14 million shares have been traded, compared to an average intraday trading volume of 28.70 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -24.08%, -18.04%, and -44.12% respectively.

    Institutional ownership of Novan Inc. (NASDAQ: NOVN) shares accounts for 4.90% of the company’s 137.47M shares outstanding. Mutual fund holders own 1.23%, while other institutional holders and individual stakeholders account for 3.57% and 1.09% respectively.

    It has a market capitalization of $67.79M and a beta (3y monthly) value of -0.14. The earnings-per-share (ttm) stands at -$0.48. Price movements for the stock have been influenced by the stock’s volatility, which stands at 8.56% over the week and 12.15% over the month.

    Analysts forecast that Novan Inc. (NOVN) will achieve an EPS of -$0.05 for the current quarter, -$0.06 for the next quarter and -$0.14 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.06 while analysts give the company a high EPS estimate of -$0.05. Comparatively, EPS for the current quarter was -$0.32 a year ago. Earnings per share for the fiscal year are expected to decrease by -137.60%, and 53.30% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 1 brokerage firm advisors rate Novan Inc. (NOVN) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 0 of the 1 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the NOVN, a number of firms have released research notes about the stock. Piper Jaffray stated their Neutral rating for the stock in a research note on January 06, 2020, with the firm’s price target at.


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