Moderna (NASDAQ:MRNA) Trading Down 8.2% – Here’s Why

Moderna, Inc. (NASDAQ:MRNA)’s stock price dropped 8.2% on Monday . The company traded as low as $131.20 and last traded at $133.2460. Approximately 6,749,396 shares were traded during trading, a decline of 38% from the average session volume of 10,818,839 shares. The stock had previously closed at $145.13.

Moderna News Roundup

Here are the key news stories impacting Moderna this week:

• Positive Sentiment: Moderna and Merck reported a major melanoma-cancer-vaccine breakthrough: their personalized mRNA treatment, used with Merck’s Keytruda, showed strong Phase 3 results. The data reinforce the potential for Moderna’s platform to expand beyond infectious diseases and become a meaningful oncology business. Moderna reports a cancer vaccine breakthrough
• Positive Sentiment: Coverage of the melanoma results has driven broad enthusiasm for mRNA technology, with investors viewing the findings as validation of Moderna’s personalized-vaccine approach and its partnership with Merck. Why Moderna’s and Merck’s cancer vaccine is a breakthrough for mRNA
• Positive Sentiment: Moderna’s mRNA flu vaccine was reported as FDA-approved, adding another potential commercial product and supporting the company’s effort to diversify its revenue base. Moderna’s mRNA flu vaccine approved by FDA
• Neutral Sentiment: JPMorgan raised its Moderna price target to $77, while an analyst upgrade contributed to unusually heavy trading volume. However, that target remains well below the stock’s recent trading level, signaling that some analysts still view the rally as excessive. JPMorgan boosts Moderna price target
• Negative Sentiment: Analysts caution that personalized cancer vaccines may be difficult to manufacture at scale and less financially lucrative than investors expect. Moderna remains loss-making, with an estimated full-year loss of $6.18 per share, making the stock’s sharp rally dependent on future clinical and commercial execution. Moderna cancer vaccine financial outlook

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on MRNA. Loop Capital set a $135.00 price target on Moderna in a report on Wednesday. William Blair raised Moderna from a “market perform” rating to an “outperform” rating in a research report on Wednesday, August 19th. JPMorgan Chase & Co. increased their price target on Moderna from $40.00 to $77.00 and gave the stock an “underweight” rating in a research note on Friday. Barclays set a $125.00 target price on Moderna in a research report on Monday. Finally, Wolfe Research restated an “underperform” rating and set a $25.00 target price on shares of Moderna in a research note on Monday, July 20th. Four investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $74.31.

Moderna Trading Down 3.2%

The company has a market capitalization of $56.07 billion, a PE ratio of -17.58 and a beta of 0.91. 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 firm’s 50 day simple moving average is $68.49 and its 200-day simple moving average is $56.19.

Moderna (NASDAQ:MRNA) last issued its quarterly earnings data on Friday, July 31st. The company reported ($1.97) earnings per share 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 analysts’ expectations of $102.93 million. During the same period in the previous year, the business earned ($2.13) earnings per share. The company’s revenue was up 2.1% on a year-over-year basis. As a group, equities research analysts anticipate that Moderna, Inc. will post -6.18 EPS for the current year.

Insider Buying and Selling at Moderna

In other news, President Stephen Hoge sold 53,336 shares of Moderna stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $51.37, for a total transaction of $2,739,870.32. Following the completion of the transaction, the president directly owned 1,483,848 shares in the company, valued at approximately $76,225,271.76. The trade was a 3.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon Thyme Klinger sold 3,471 shares of the company’s stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $50.00, for a total transaction of $173,550.00. Following the transaction, the insider owned 67,468 shares of the company’s stock, valued at approximately $3,373,400. This represents a 4.89% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Corporate insiders own 10.80% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. MUFG Securities EMEA plc purchased a new position in Moderna during the 2nd quarter worth $28,000. Allied Private Wealth LLC acquired a new stake in Moderna in the 2nd quarter valued at approximately $30,000. Canton Hathaway LLC acquired a new position in Moderna during the 1st quarter worth approximately $31,000. Archer Investment Corp acquired a new stake in shares of Moderna in the second quarter valued at approximately $36,000. Finally, EverSource Wealth Advisors LLC lifted its holdings in shares of Moderna by 148.3% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,341 shares of the company’s stock valued at $37,000 after buying an additional 801 shares during the period. 75.33% of the stock is currently owned by 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.