Moderna (NASDAQ:MRNA) Stock Jumps 1.2% – Still a Buy?

Moderna, Inc. (NASDAQ:MRNA)’s stock price was up 1.2% on Tuesday. The company traded as high as $218.48 and last traded at $216.25. Approximately 13,355,521 shares changed hands during mid-day trading, an increase of 9% from the average daily volume of 12,250,907 shares. The stock had previously closed at $213.74.

Moderna News Roundup

Here are the key news stories impacting Moderna this week:

• Positive Sentiment: Personalized cancer-vaccine optimism remains the main catalyst. Moderna and Merck’s individualized mRNA cancer vaccine previously met primary and key secondary endpoints in a Phase 3 melanoma trial, and the companies are testing the platform across melanoma, lung, bladder and kidney cancers. Full Phase 3 data expected later this month could provide another major catalyst. Moderna company overview
• Positive Sentiment: Manufacturing progress supports the commercial outlook. Merck CEO Rob Davis said the complex cancer-vaccine manufacturing process is becoming increasingly efficient and that the partners have it “down to a very tight science.” Faster production could improve scalability if the vaccine wins approval. CNBC cancer vaccine manufacturing article
• Positive Sentiment: Sector rotation and technical momentum are attracting buyers. Fresh investment is moving from popular technology shares into healthcare, while Moderna has become the S&P 500’s strongest performer year to date. Nasdaq-100 inclusion may also create additional demand from index-tracking funds. Healthcare sector rotation article
• Neutral Sentiment: Near-term events could produce substantial volatility. Moderna’s third-quarter earnings report is scheduled for November 6, followed by Analyst Day on November 12. Investors will likely focus on pipeline updates, cash use and the path back to profitability.
• Negative Sentiment: Valuation has become difficult to justify on current fundamentals. Moderna remains unprofitable, burns cash and is expected to post a full-year loss. Goldman Sachs raised its price target to $137 but retained a Neutral rating, implying considerable downside from the current trading level. Other commentary also warns that analyst targets remain well below the stock after its dramatic rally. Seeking Alpha Moderna valuation article

Analyst Ratings Changes

Several equities research analysts have weighed in on MRNA shares. Morgan Stanley raised their price objective on shares of Moderna from $89.00 to $95.00 and gave the company an “equal weight” rating in a research report on Wednesday, October 7th. CLSA raised shares of Moderna to an “outperform” rating in a research note on Friday, August 28th. Weiss Ratings reissued a “sell (d-)” rating on shares of Moderna in a report on Wednesday, September 9th. Loop Capital set a $135.00 price objective on shares of Moderna in a research report on Wednesday, August 19th. Finally, Bradesco Corretora upgraded shares of Moderna to an “outperform” rating in a research report on Friday, August 28th. Seven equities research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $101.45.

Moderna Trading Up 4.5%

The company has a debt-to-equity ratio of 0.09, a quick ratio of 2.18 and a current ratio of 2.29. The company has a market capitalization of $94.42 billion, a price-to-earnings ratio of -29.60 and a beta of 1.09. The business’s 50-day simple moving average is $149.83 and its 200-day simple moving average is $88.67.

Moderna (NASDAQ:MRNA) last released its earnings results on Friday, July 31st. The company reported ($1.97) EPS for the quarter, topping analysts’ consensus estimates of ($2.03) by $0.06. The firm had revenue of $145.00 million during the quarter, compared to analyst estimates of $102.93 million. Moderna had a negative net margin of 141.43% and a negative return on equity of 28.30%. The business’s quarterly revenue was up 2.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($2.13) EPS. On average, research analysts expect that Moderna, Inc. will post -6.11 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Moderna news, insider Shannon Klinger sold 3,471 shares of the firm’s stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $139.95, for a total transaction of $485,766.45. Following the sale, the insider directly owned 74,129 shares in the company, valued at approximately $10,374,353.55. This trade represents a 4.47% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. 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 40,281 shares of Moderna stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $146.07, for a total transaction of $5,883,845.67. Following the completion of the transaction, the president directly owned 1,562,029 shares in the company, valued at approximately $228,165,576.03. The trade was a 2.51% 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. Insiders sold 118,882 shares of company stock worth $16,862,280 over the last ninety days. 10.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Moderna

Several institutional investors have recently added to or reduced their stakes in MRNA. PFG Private Wealth Management LLC acquired a new position in Moderna in the 3rd quarter valued at about $473,000. State of Alaska Department of Revenue lifted its position in Moderna by 1.7% during the third quarter. State of Alaska Department of Revenue now owns 35,174 shares of the company’s stock worth $6,773,000 after acquiring an additional 573 shares during the last quarter. WealthPlan Investment Management LLC acquired a new stake in Moderna during the third quarter worth approximately $229,000. Mather Group LLC. boosted its holdings in shares of Moderna by 2.0% during the third quarter. Mather Group LLC. now owns 7,756 shares of the company’s stock worth $1,494,000 after acquiring an additional 152 shares during the period. Finally, Fortitude Family Office LLC boosted its holdings in shares of Moderna by 53.1% during the third quarter. Fortitude Family Office LLC now owns 222 shares of the company’s stock worth $43,000 after acquiring an additional 77 shares during the period. 75.33% of the stock is owned by institutional investors.

Moderna Company Profile

Moderna, Inc is a biotechnology company that develops medicines and vaccines using messenger RNA (mRNA) technology. Its platform is designed to instruct cells to produce proteins that can help prevent or treat disease, supporting the company’s work across infectious diseases, immuno-oncology, rare diseases, autoimmune conditions, and cardiovascular diseases.

Moderna’s commercial products include Spikevax, an mRNA vaccine for COVID-19, and mRESVIA, an mRNA vaccine for respiratory syncytial virus (RSV) in older adults.