Swedbank Robur Europafond Reports 0.11% Decline in July, Novo Nordisk Position Reduced

Swedbank Robur Europafond A declined 0.11% in July, underperforming its benchmark index, which rose 0.58%. The fund's performance year-to-date is 1.68%, lagging behind the index's 6.75%. The manager notes that global stock markets performed strongly in July, while the European market remained flat. The fund manager reduced its position in Novo Nordisk due to the company's profit warning and lowered growth outlook.

Novo Nordisk (NVO) has been a subject of interest among investors due to its recent performance and market dynamics. The Danish pharmaceutical giant has faced challenges since June 2023, with its stock price fluctuating significantly. However, recent market trends suggest that risk-tolerant speculators may find opportunities in the near term.

Novo Nordisk reported its second-quarter earnings, posting earnings per share (EPS) of 91 cents, missing analysts' consensus target of 93 cents. Despite this, the company's top-line revenue grew by nearly 19% year-over-year, reaching $11.68 billion. This performance was a significant improvement over the year-ago quarter's EPS of 65 cents.

The company's stock price, however, has been volatile. Since the earnings report, NVO stock has experienced a downward trajectory, with a decline of more than 46%. This decline was exacerbated by Eli Lilly's strong earnings report, which beat analysts' expectations. Despite these challenges, Novo Nordisk has shown signs of recovery, with a 3% increase in stock price on Friday, July 1, 2025.

Investors should be cautious, as the market for weight-loss therapeutics has become more competitive, with new entrants like Eli Lilly's Zepbound. Additionally, Novo Nordisk faces legal challenges, including a federal securities class action lawsuit, and has lowered its sales and profit outlook for 2025.

However, some market analysts suggest that the recent discount in NVO stock may present an opportunity for profit scalping. A 6X seasonal strategy is being promoted to target fall's biggest opportunities [1].

Options traders have identified a potential reversal signal in NVO stock's price action. In the trailing 10 weeks, the market has voted to buy NVO stock four times and sell six times, resulting in a downward trajectory. However, in 61.54% of cases, the week following this sequence results in an upside, with a median return of 2.95% [1].

Based on this analysis, a bullish trader might consider a vertical spread options strategy. A 57/58 bull call spread expiring on September 19, 2025, involves buying the $57 call and selling the $58 call for a net debit of $51. This strategy caps maximum potential profitability but makes the position cheaper, suitable for securities projected to move by a small magnitude [1].

Swedbank Robur Europafond A, which had reduced its position in Novo Nordisk due to the company's profit warning and lowered growth outlook, declined by 0.11% in July 2025. The fund underperformed its benchmark index, which rose by 0.58% [2].

References:
[1] https://www.benzinga.com/markets/options/25/08/47293575/embattled-novo-nordisk-nvo-stock-flashing-reversal-sign
[2] https://www.benzinga.com/markets/options/25/08/47293575/embattled-novo-nordisk-nvo-stock-flashing-reversal-sign