Shares of Danish pharmaceutical giant Novo Nordisk A/S (NYSE:NVO) experienced sharp volatility following its latest quarterly results. On the August 12 episode of Mad Money, Jim Cramer pointed out the disconnect between the company’s strong performance and Wall Street’s initial negative knee-jerk reaction. Cramer commented:
Alright, what happened to the stock of Novo Nordisk, the Danish drug company, you know as the inventor of Ozempic and Wegovy. Last week, they reported a beat and raise quarter, yet, the stock fell nearly 6% the day those numbers were released. Since then, well, it made up most of its losses, but that was a stunning reaction. Hey, keep in mind, Novo Nordisk helped invent the whole GLP-1 category, and their obesity and diabetes businesses are now printing money. In January, they launched a pill version of Wegovy. It’s already been prescribed more than 5 million times, mostly to people who never tried the injections. In the end, though, this is a turnaround story… but it’s still not getting much love from Wall Street.
Cramer Flips Stance After Months of Caution
Cramer’s recent praise represents a shift from his earlier, more cautious stance on the stock earlier in the year. On January 29, when a caller asked about Novo Nordisk A/S (NYSE:NVO), Cramer noted that he preferred Eli Lilly’s trajectory, stating:
I kind of liked it when I spoke to them. I gotta tell you, I kind of warmed up… I was in San Francisco, and I said, you know what? I get that stock a little down more… But I love Eli Lilly and David Ricks, and what can I say? You know, as long as Eli Lilly and David Ricks are putting up those numbers and they get that pill form soon, I think that Novo is a hold, not a buy.
By April 27, Cramer’s stance turned even more bearish. When a caller inquired about the stock, he replied:
Oh, Novo Nordisk, no, look, Eli Lilly’s struggling right here. I think, and Novo Nordisk is going to lose a lot of share on the pill to Eli Lilly. So I say no, we don’t want to be there.
Q2 Beat-and-Raise Fueled by Wegovy Pill Adoption
Novo Nordisk’s Q2 2026 results and the rapid rollout of its oral Wegovy formulation have challenged that original bearish thesis. For Q2 2026, Novo Nordisk A/S (NYSE:NVO) delivered net sales of DKK 78.49 billion (approximately $12.1 billion), representing 7% growth at constant exchange rates (CER) on an adjusted basis, while adjusted operating profit grew 11% at CER to DKK 33.39 billion. The main driver of the outperformance was the oral Wegovy pill, which has already surpassed 5 million total prescriptions since its early-2026 launch. The pill is successfully capturing patients who previously resisted injectable treatments.
Wall Street Warns About Valuation Tops and Strategy Uncertainty
Despite the raised guidance, several sell-side desks remain cautious on near-term upside. On August 6, BMO Capital analyst Evan Seigerman reiterated a Market Perform rating while raising his price target from $45 to $47. Seigerman noted that while Wegovy pill prescriptions showed solid traction, overall results fell slightly short of elevated expectations. He highlighted ongoing pricing pressure and an unclear long-term obesity strategy as primary reasons Novo Nordisk A/S (NYSE:NVO) needs to diversify its portfolio beyond core GLP-1s.
Similarly, Berenberg downgraded it from Buy to Hold, trimming its Copenhagen target from DKK 325 to DKK 305. The firm argued that the stock’s easy valuation gains have materialized, and noted that further multiple expansion requires clear proof that Novo Nordisk A/S (NYSE:NVO) can defend its oral obesity market share and expand its injectable presence through pipeline breakthroughs.
Hedge Funds Hold Ground as Short Sellers Back Off
Data tracked across top hedge funds reveals steady institutional backing for Novo Nordisk A/S (NYSE:NVO). At the close of Q1 2026, 55 hedge funds held positions in the company, holding flat compared to the prior quarter. Fisher Asset Management remains the company’s most prominent shareholder despite trimming its position for several quarters. Additionally, short interest remains low at 0.93% of float, signaling minimal speculative betting on further downside.
Novo Nordisk A/S (NYSE:NVO) remains positioned at the center of the metabolic treatment landscape. While Cramer previously urged caution in favor of Eli Lilly, Novo Nordisk’s Q2 execution and oral product adoption have prompted a reassessment of the stock’s long-term thesis.
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