Moderna (NASDAQ:MRNA) Trading 5.6% Higher – Here’s Why

Moderna, Inc. (NASDAQ:MRNA)’s share price traded up 5.6% on Tuesday . The stock traded as high as $187.20 and last traded at $182.56. 23,758,405 shares traded hands during trading, an increase of 101% from the average daily volume of 11,791,728 shares. The stock had previously closed at $172.94.

Key Stories Impacting Moderna

Here are the key news stories impacting Moderna this week:

• Positive Sentiment: Cancer-vaccine optimism remains the main catalyst. Moderna and Merck reported positive Phase III melanoma results for intismeran autogene, and investors are positioning ahead of more detailed data expected at a late-October medical meeting. The therapy reportedly reduced the risk of recurrence or death, strengthening expectations that Moderna could establish a commercially important oncology franchise. MRNA Hits 52-Week High: How Melanoma Study Results Keep Rally Going
• Positive Sentiment: Investors are responding to Moderna’s broader mRNA strategy. CEO Stéphane Bancel emphasized that the company has never been solely a COVID-19 vaccine business, highlighting opportunities in cancer, respiratory disease and other areas. That message helped support a new multi-year high despite broader market weakness. Moderna CEO’s Surprising Comment Gives Clues About Where Drugmaker Is Going Next
• Positive Sentiment: FDA approval of Moderna’s mRNA flu vaccine expands its commercial opportunity. Coverage of the first approved U.S. mRNA flu shot reinforces the potential for Moderna to diversify its vaccine revenue and leverage its platform beyond COVID-19. mRNA flu vaccine wins FDA approval, promising a faster shot
• Neutral Sentiment: Moderna co-founder Bob Langer’s appointment to the scientific advisory board of AI-focused biotech Cellular Intelligence links Moderna’s scientific legacy to emerging AI drug-development and neurology research, but the announcement does not represent a direct near-term financial catalyst. Moderna Tied To AI Drug Push As Bob Langer Takes New Advisory Role
• Negative Sentiment: Valuation and execution risks are becoming more prominent. Moderna has risen roughly 500% over the past year, leaving shares vulnerable to profit-taking if upcoming cancer data disappoints or commercialization takes longer than expected. Commentary also describes the stock as expensive after the rapid advance. Moderna Stock Looks Very Expensive As Shares Surge

Analyst Upgrades and Downgrades

MRNA has been the topic of a number of research reports. Morgan Stanley increased their price objective on shares of Moderna from $39.00 to $89.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 20th. William Blair initiated coverage on Moderna in a research report on Friday, August 28th. They set an “outperform” rating on the stock. Rothschild & Co Redburn cut Moderna from a “neutral” rating to a “sell” rating and boosted their price objective for the company from $40.00 to $81.00 in a report on Thursday, September 3rd. Jefferies Financial Group restated a “hold” rating on shares of Moderna in a research note on Wednesday, August 19th. Finally, Argus raised Moderna from a “hold” rating to a “buy” rating and set a $180.00 target price on the stock in a report on Friday, August 28th. Seven research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $76.72.

Moderna Price Performance

The company has a 50-day moving average of $106.41 and a 200 day moving average of $72.94. The company has a quick ratio of 2.18, a current ratio of 2.29 and a debt-to-equity ratio of 0.09. The stock has a market capitalization of $73.72 billion, a PE ratio of -23.08 and a beta of 1.10.

Moderna (NASDAQ:MRNA) last announced its earnings results on Friday, July 31st. The company reported ($1.97) earnings per share (EPS) for the quarter, topping the consensus estimate of ($2.03) by $0.06. The company had revenue of $145.00 million for the quarter, compared to analysts’ expectations of $102.93 million. Moderna had a negative net margin of 141.43% and a negative return on equity of 28.30%. The firm’s quarterly revenue was up 2.1% on a year-over-year basis. During the same quarter in the previous year, the company posted ($2.13) EPS. Sell-side analysts predict that Moderna, Inc. will post -6.09 EPS for the current year.

Insider Buying and Selling

In related news, President Stephen Hoge sold 40,294 shares of the company’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $144.13, for a total transaction of $5,807,574.22. Following the completion of the sale, the president owned 1,525,858 shares of the company’s stock, valued at approximately $219,921,913.54. This represents a 2.57% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon Klinger sold 3,471 shares of the stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $139.95, for a total transaction of $485,766.45. Following the completion of the sale, the insider owned 74,129 shares of the company’s stock, valued at approximately $10,374,353.55. The trade was a 4.47% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Over the last three months, insiders have sold 118,882 shares of company stock worth $16,862,280. 10.80% of the stock is owned by insiders.

Hedge Funds Weigh In On Moderna

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MRNA. Merck & Co. Inc. purchased a new stake in shares of Moderna in the second quarter valued at about $161,642,545. Louisiana State Employees Retirement System purchased a new position in Moderna during the first quarter worth about $899,000. Bank of New York Mellon Corp purchased a new position in Moderna during the second quarter worth about $119,168,000. Contravisory Investment Management Inc. boosted its holdings in Moderna by 1,387.6% in the 2nd quarter. Contravisory Investment Management Inc. now owns 24,218 shares of the company’s stock valued at $1,696,000 after purchasing an additional 22,590 shares during the last quarter. Finally, Lingotto Investment Management LLP grew its stake in shares of Moderna by 33.7% in the 4th quarter. Lingotto Investment Management LLP now owns 498,693 shares of the company’s stock valued at $14,706,000 after buying an additional 125,598 shares during the period. Institutional investors and hedge funds own 75.33% of the company’s stock.

Moderna Company Profile

Moderna, Inc is a biotechnology company that develops messenger RNA (mRNA) medicines and vaccines. Its platform is designed to provide cells with instructions to produce proteins that may help prevent or treat infectious diseases, cancer and other medical conditions.

The company’s commercial products include Spikevax, an mRNA vaccine for COVID-19, and mRESVIA, an mRNA vaccine for respiratory syncytial virus (RSV) in older adults. Moderna also maintains a pipeline of investigational programs in areas such as seasonal influenza, cytomegalovirus, oncology and rare diseases.

Founded in 2010 and headquartered in Cambridge, Massachusetts, Moderna serves markets in the United States and internationally through regulatory approvals, commercial partnerships and distribution arrangements.