Investors Purchase Large Volume of Novavax Call Options (NASDAQ:NVAX)

Key Points

• Novavax call-option activity surged: Traders purchased 55,472 call options, approximately 508% above the typical volume of 9,122 contracts.
• Analyst sentiment remained mixed: Five analysts rated the stock a Buy, two rated it Hold, and two rated it Sell, producing an overall “Hold” consensus with an average price target of $14.
• Shares jumped while fundamentals stayed weak: Novavax stock rose $2.90 to $13.36 on unusually heavy volume, even as the company reported a 76.2% year-over-year revenue decline and negative net margins; institutional investors owned 53.04% of the stock.

Novavax, Inc. (NASDAQ:NVAX - Get Free Report) saw some unusual options trading activity on Monday. Stock traders acquired 55,472 call options on the stock. This represents an increase of approximately 508% compared to the typical volume of 9,122 call options.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. Zacks Research downgraded Novavax from a "strong-buy" rating to a "hold" rating in a research note on Thursday, August 6th. BTIG Research restated a "buy" rating and set a $19.00 price objective on shares of Novavax in a report on Thursday, June 11th. Wall Street Zen raised Novavax from a "sell" rating to a "hold" rating in a research report on Saturday, September 12th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Novavax in a report on Tuesday, August 4th. Five research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $14.00.

Novavax Stock Performance

NASDAQ:NVAX traded up $2.90 during trading on Monday, reaching $13.36. The company's stock had a trading volume of 19,317,082 shares, compared to its average volume of 4,851,649. Novavax has a 12 month low of $6.20 and a 12 month high of $13.04. The firm has a market cap of $2.20 billion, a price-to-earnings ratio of -8.77 and a beta of 2.44. The firm has a 50 day moving average of $9.15 and a 200-day moving average of $9.03.

Novavax (NASDAQ:NVAX - Get Free Report) last released its earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.32) earnings per share for the quarter, beating analysts' consensus estimates of ($0.38) by $0.06. The firm had revenue of $56.70 million during the quarter, compared to the consensus estimate of $52.51 million. Novavax had a negative net margin of 59.87% and a negative return on equity of 14.82%. The company's revenue was down 76.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.62 EPS. Equities research analysts forecast that Novavax will post -0.46 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Novavax

A number of institutional investors and hedge funds have recently made changes to their positions in NVAX. Shah Capital Management grew its position in Novavax by 2.0% in the first quarter. Shah Capital Management now owns 14,845,097 shares of the biopharmaceutical company's stock worth $120,839,000 after acquiring an additional 286,317 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in Novavax during the second quarter valued at about $8,004,000. Edgestream Partners L.P. bought a new stake in Novavax during the first quarter worth about $4,234,000. Renaissance Technologies LLC bought a new stake in Novavax during the first quarter worth about $4,049,000. Finally, First Trust Advisors LP boosted its holdings in shares of Novavax by 37.7% in the 1st quarter. First Trust Advisors LP now owns 409,328 shares of the biopharmaceutical company's stock worth $3,332,000 after purchasing an additional 112,009 shares in the last quarter. Hedge funds and other institutional investors own 53.04% of the company's stock.

About Novavax

Novavax, Inc is a biotechnology company focused on the discovery, development and commercialization of vaccines. The company uses its recombinant protein-based vaccine platform and Matrix-M adjuvant technology to develop vaccines designed to stimulate targeted immune responses.

Novavax's principal commercial product is its protein-based COVID-19 vaccine, marketed in various regions under the Nuvaxovid or Novavax COVID-19 Vaccine name. The vaccine has been authorized or approved in multiple markets, including the United States, Europe and other international jurisdictions, with availability and regulatory status varying by country.

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