Retail Investors Buy Novo Nordisk Amid Stock Plunge Amid Institutions Selling Off

Novo Nordisk's stock has plummeted by 30% after a lowered annual forecast, but retail investors are buying up the shares. Institutions, especially US-based ones, are selling large volumes. The company's market capitalization has dropped by over 900 billion Swedish kronor in one week, equivalent to Investor's total market cap. Novo Nordisk has seen a surge in shareholders, with 308,000 on Nordnet and 84,500 on Avanza, with most trades being buys.

Novo Nordisk's (NVO) stock has plummeted by 30% after the company slashed its full-year sales and earnings guidance, primarily due to weakening sales of its blockbuster GLP-1 drugs, Ozempic and Wegovy [1]. The Danish pharmaceutical giant's stock has been hit by competition from "compounders" marketing tailored versions of GLP-1 treatments, which has put pressure on drug sales.

The company's market capitalization has dropped by over 900 billion Swedish kronor in one week, equivalent to Investor's total market cap. Retail investors have been buying up the shares, with 308,000 on Nordnet and 84,500 on Avanza, with most trades being buys [2]. Institutions, especially US-based ones, are selling large volumes.

Novo Nordisk's stock has been trading at one of its lowest price-to-earnings ratios (P/E) in the last 30 years, making it an attractive option for long-term investors [1]. The company's guidance for full-year sales growth was cut to 8% to 14%, down significantly from its earlier range of 13% to 21%. Its guidance for operating profit was also cut, from between 16% and 24% to between 10% and 16% [1].

Despite the challenges, Novo Nordisk has seen a surge in shareholders. The company's stock price has been volatile, with significant fluctuations in recent months. The company's performance has been mixed over the trailing four quarters, with earnings beating estimates in one quarter, matching once and missing the mark on the remaining two occasions [2].

The company's second-quarter 2025 results are expected to be released before the opening bell on Aug. 6, 2025. The Zacks Consensus Estimate for quarterly revenues in the to-be-reported quarter is pegged at $11.79 billion, while the same for earnings is pinned at 93 cents per share [2].

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/NVO/pressreleases/33824423/why-novo-nordisk-stock-imploded-this-week/
[2] https://www.nasdaq.com/articles/novo-nordisk-q2-earnings-how-should-investors-play-stock