Moderna (NASDAQ:MRNA) Raised to "Neutral" at Bank of America

Key Points

• Bank of America upgraded Moderna from “underperform” to “neutral,” while the broader analyst consensus remains “hold,” with five buy, ten hold and four sell ratings and an average price target of $53.25.
• Moderna shares surged 144.6% to $154.02 amid positive Phase 3 melanoma-vaccine results with Merck’s Keytruda, supporting the potential for an oncology business beyond its COVID-19 and respiratory vaccines.
• The company reported a narrower-than-expected quarterly loss and higher-than-expected revenue, but remains unprofitable; analysts forecast a full-year loss of approximately $6.20 per share.

Moderna (NASDAQ:MRNA - Get Free Report) was upgraded by equities researchers at Bank of America from an "underperform" rating to a "neutral" rating in a research report issued on Wednesday.

Several other research firms also recently commented on MRNA. Jefferies Financial Group reiterated a "hold" rating on shares of Moderna in a report on Wednesday. Brookline Capital Markets reiterated a "buy" rating on shares of Moderna in a research report on Wednesday. Piper Sandler reissued an "overweight" rating on shares of Moderna in a research note on Monday, August 3rd. Morgan Stanley increased their target price on Moderna from $33.00 to $39.00 and gave the stock an "equal weight" rating in a research note on Wednesday, July 8th. Finally, William Blair raised Moderna from a "market perform" rating to an "outperform" rating in a research report on Wednesday. Five research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $53.25.

Moderna Stock Up 144.6%

NASDAQ MRNA traded up $91.06 on Wednesday, hitting $154.02. 139,918,642 shares of the company were exchanged, compared to its average volume of 9,402,954. The company has a current ratio of 2.29, a quick ratio of 2.18 and a debt-to-equity ratio of 0.09. The stock has a fifty day moving average of $62.34 and a 200-day moving average of $53.94. Moderna has a 12 month low of $22.28 and a 12 month high of $163.47. The company has a market cap of $61.49 billion, a PE ratio of -19.33 and a beta of 0.91.

Moderna (NASDAQ:MRNA - Get Free Report) last posted its earnings results on Friday, July 31st. The company reported ($1.97) EPS for the quarter, topping the consensus estimate of ($2.03) by $0.06. The firm 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 company's quarterly revenue was up 2.1% compared to the same quarter last year. During the same quarter last year, the firm earned ($2.13) EPS. As a group, analysts forecast that Moderna will post -6.2 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Shannon Thyme Klinger sold 3,471 shares of the firm'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 value of $173,550.00. Following the transaction, the insider owned 67,468 shares in the company, valued at $3,373,400. This trade represents a 4.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available 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 53,336 shares of the firm's stock in a transaction dated Monday, June 15th. The stock was 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 of the company's stock, valued at $76,225,271.76. The trade was a 3.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 66,070 shares of company stock worth $3,347,299. Insiders own 10.80% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in shares of Moderna by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 41,584,782 shares of the company's stock worth $1,226,335,000 after buying an additional 399,487 shares in the last quarter. BlackRock Inc. purchased a new stake in Moderna during the second quarter worth about $2,142,877,000. Capital World Investors purchased a new stake in shares of Moderna during the 4th quarter worth approximately $378,299,000. Invesco Ltd. grew its holdings in Moderna by 15.7% in the third quarter. Invesco Ltd. now owns 8,216,163 shares of the company's stock valued at $212,223,000 after purchasing an additional 1,115,131 shares during the last quarter. Finally, Theleme Partners LLP purchased a new stake in Moderna in the 2nd quarter valued at approximately $564,272,000. 75.33% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Moderna

Here are the key news stories impacting Moderna this week:

• Positive Sentiment: The INTerpath-001 trial met its primary endpoints for recurrence-free survival and distant metastasis-free survival. Adding intismeran to Merck’s Keytruda reduced the risk of melanoma returning or spreading compared with Keytruda alone, marking the first positive late-stage validation of a personalized mRNA cancer vaccine. Merck and Moderna announce positive Phase 3 INTerpath-001 results
• Positive Sentiment: The results substantially improve Moderna’s long-term growth outlook by supporting a potential oncology franchise beyond its COVID-19 and respiratory vaccine business. Investors also viewed the data as validating the company’s mRNA platform, while short covering likely amplified the move; short sellers faced unusually large losses as the stock surged. Reuters report on Moderna short sellers
• Positive Sentiment: William Blair upgraded Moderna from “market perform” to “outperform,” adding analyst support to the positive clinical readout. The company also received FDA approval for mFLUSIVA, its seasonal mRNA influenza vaccine, creating a potential additional commercial revenue source. The Fly report on William Blair’s upgrade
• Neutral Sentiment: The cancer-vaccine announcement provided topline results, and analysts are awaiting detailed efficacy, safety and follow-up data. The companies must still pursue regulatory approval and establish manufacturing and pricing for a complex individualized therapy. Reuters analysis of Moderna-Merck melanoma data
• Negative Sentiment: Put-option purchases were approximately 258% above typical daily volume, signaling heightened hedging or bearish speculation. Such activity may increase volatility, although it could also reflect investors protecting gains after the dramatic rally.

About Moderna

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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