Moderna (NASDAQ:MRNA) Trading Up 11% – Still a Buy?

Moderna, Inc. (NASDAQ:MRNA) shot up 11% during trading on Tuesday . The stock traded as high as $154.27 and last traded at $154.1420. Approximately 7,916,636 shares traded hands during trading, a decline of 28% from the average daily volume of 10,958,646 shares. The stock had previously closed at $138.89.

Key Stories Impacting Moderna

Here are the key news stories impacting Moderna this week:

• Positive Sentiment: Moderna and Merck’s individualized mRNA cancer vaccine, intismeran autogene, reportedly reduced the risk of melanoma recurrence by 49% in a late-stage study when used with Keytruda. The results reinforce Moderna’s strategy of expanding beyond COVID-19 vaccines and could support a large oncology opportunity. Skin cancer vaccine report
• Positive Sentiment: Wolfe Research upgraded Moderna following the Phase 3 oncology data and estimated a potential cancer-vaccine market opportunity of approximately $9.2 billion. That outlook helped fuel the recent rally and improves confidence that Moderna may develop meaningful non-COVID revenue. Wolfe cancer-vaccine opportunity report
• Positive Sentiment: The FDA’s approval of the first mRNA-based flu vaccine highlights growing recognition of mRNA technology and may increase the strategic and patent value of platforms used by companies such as Moderna. FDA mRNA flu vaccine report
• Neutral Sentiment: Analysts and investors are increasingly viewing Moderna as an oncology and platform-technology company rather than solely a COVID-19 vaccine maker. However, recent trading alerts and analyst-driven momentum appear to have amplified volatility, making the shares vulnerable to profit-taking.
• Negative Sentiment: Despite the upgrade, the stock is giving back part of its rally because Moderna’s roughly $59 billion valuation remains difficult to justify against a loss-making business and weak near-term revenue. The company reported a quarterly loss and continues to face uncertainty over the timing and probability of commercializing its pipeline. Moderna valuation and pullback report
• Negative Sentiment: Coverage also cautions that the cancer-vaccine evidence remains limited and that manufacturing personalization, treatment costs, regulatory review and broad adoption could restrict the therapy’s eventual use. Cancer-vaccine barriers explainer
• Negative Sentiment: Moderna’s CEO warned that China’s state-backed investment in mRNA technology is intensifying global competition, potentially increasing pressure on intellectual property, pricing and long-term market share. China mRNA competition report

Wall Street Analyst Weigh In

Several equities analysts recently commented on MRNA shares. Jefferies Financial Group reiterated a “hold” rating on shares of Moderna in a report on Wednesday, August 19th. UBS Group raised their price objective on shares of Moderna from $50.00 to $150.00 and gave the stock a “neutral” rating in a research note on Thursday, August 20th. The Goldman Sachs Group boosted their target price on Moderna from $67.00 to $120.00 and gave the company a “neutral” rating in a research report on Wednesday, August 19th. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $130.00 target price on shares of Moderna in a research note on Wednesday, August 19th. Finally, Brookline Capital Markets reiterated a “buy” rating on shares of Moderna in a report on Wednesday, August 19th. Four analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $74.31.

Moderna Price Performance

The firm has a fifty day moving average of $74.05 and a two-hundred day moving average of $58.46. The stock has a market capitalization of $59.75 billion, a P/E ratio of -18.73 and a beta of 0.91. The company has a debt-to-equity ratio of 0.09, a current ratio of 2.29 and a quick ratio of 2.18.

Moderna (NASDAQ:MRNA) last posted its earnings results on Friday, July 31st. The company reported ($1.97) EPS for the quarter, beating analysts’ consensus estimates of ($2.03) by $0.06. Moderna had a negative net margin of 141.43% and a negative return on equity of 28.30%. The business had revenue of $145.00 million for the quarter, compared to the consensus estimate of $102.93 million. During the same quarter last year, the firm posted ($2.13) EPS. The company’s revenue for the quarter was up 2.1% on a year-over-year basis. On average, analysts predict that Moderna, Inc. will post -6.18 EPS for the current year.

Insider Activity at Moderna

In related news, insider Shannon Thyme Klinger sold 3,471 shares of the business’s stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $50.00, for a total value of $173,550.00. Following the completion of the transaction, the insider owned 67,468 shares of the company’s stock, valued at $3,373,400. The trade was a 4.89% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, President Stephen Hoge sold 53,336 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $51.37, for a total value of $2,739,870.32. Following the sale, the president directly owned 1,483,848 shares in the company, valued at $76,225,271.76. This trade represents a 3.47% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 10.80% of the company’s stock.

Institutional Trading of Moderna

Several hedge funds have recently modified their holdings of the company. Allied Private Wealth LLC bought a new position in shares of Moderna during the 2nd quarter worth approximately $30,000. Archer Investment Corp purchased a new position in Moderna in the second quarter worth $36,000. Canton Hathaway LLC acquired a new position in shares of Moderna during the first quarter worth $31,000. Frazier Financial Advisors LLC acquired a new position in shares of Moderna during the second quarter worth $45,000. Finally, Freestone Grove Partners LP purchased a new stake in shares of Moderna during the 2nd quarter valued at $46,000. 75.33% of the stock is owned by hedge funds and other institutional investors.

Moderna Company Profile

Moderna, Inc is a biotechnology company headquartered in Cambridge, Massachusetts, specializing in messenger RNA (mRNA) therapeutics and vaccines. The company’s platform leverages synthetic mRNA to instruct cells to produce proteins that can prevent or treat diseases. Since its founding in 2010, Moderna has advanced from early-stage research into a broad pipeline of vaccine and therapeutic candidates designed to address infectious diseases, rare genetic disorders and chronic illnesses.

Moderna’s flagship product is its mRNA-based COVID-19 vaccine, which was the first of its kind to receive emergency use authorization and later full approval in multiple jurisdictions.