Novo Nordisk (NYSE:NVO) Downgraded by HSBC Amid Stock Price Decline and Trial Disappointments

Core Viewpoint - Novo Nordisk has been downgraded by HSBC from "Buy" to "Hold" as its stock price approaches a four-year low, primarily due to disappointing trial results for its Alzheimer's drug, semaglutide [1][6]. Group 1: Stock Performance - The stock has fallen sharply by 7.8% to $43.87, nearing a four-year low of $43.37, and has lost 58% of its value since reaching a record high of $148.15 in June 2024 [2][4]. - Currently, the stock price stands at $44.39, reflecting a decrease of approximately 6.80%, with fluctuations between $43.08 and $47.02 today, and a market capitalization of about $197.3 billion [5]. Group 2: Trial Results Impact - The failure of oral semaglutide in phase 3 trials for Alzheimer's disease has significantly impacted Novo Nordisk, as the trials did not meet expected outcomes, adversely affecting share price and market sentiment [4][6]. Group 3: Investor Sentiment - Despite the challenges, there is increased activity among call traders, with a 10-day call/put volume ratio of 5.75 reported by the International Securities Exchange, indicating some investor optimism for a potential rebound or hedging against further declines [3].