Moderna (NASDAQ:MRNA) Shares Gap Down - Here's Why

Key Points

• Moderna shares gapped down sharply, opening at $186.55 versus the prior close of $203.46, amid concerns about the company’s valuation and the strength of evidence supporting its cancer vaccine candidate, intismeran autogene.
• Citi raised its price target to $80 from $60 but maintained a negative valuation view, while analysts overall have a consensus “Hold” rating and an average target price of $77.83.
• Potential catalysts include detailed Phase 3 melanoma data expected at next month’s ESMO conference, but Moderna also faces risks from a Bayer mRNA patent lawsuit and heightened expectations for its oncology program.

Moderna, Inc. (NASDAQ:MRNA - Get Free Report)'s stock price gapped down prior to trading on Wednesday. The stock had previously closed at $203.46, but opened at $186.55. Moderna shares last traded at $190.8560, with a volume of 6,389,386 shares.

Key Stories Impacting Moderna

Here are the key news stories impacting Moderna this week:

• Positive Sentiment: Moderna appointed Juan Andres as chief operating officer as it prepares for the potential launch and commercial scale-up of its oncology candidate intismeran autogene. The move signals that management is building infrastructure for a more diversified, cancer-focused business. Jerh Collins will retire after four years with the company. Moderna Adds Chief Operating Officer Role as Company Expands into Oncology
• Positive Sentiment: Investors continue to view Moderna’s cancer-vaccine program as a significant growth opportunity following encouraging Phase 3 results. Detailed melanoma data expected at the ESMO conference next month could provide an important catalyst, although the market is already pricing in considerable success. MRNA Stock Falls Premarket After Citi Downgrade
• Neutral Sentiment: Citi raised its price target to $80 from $60 while changing its assumptions for sales and operating expenses, but still concluded that the stock’s current valuation is difficult to justify. This combination suggests expectations are high even under more favorable operating estimates. Moderna stock falls in premarket
• Negative Sentiment: The downgrade reflects concern that available evidence for intismeran autogene is not yet strong enough to support Moderna’s elevated valuation. Investors may remain sensitive to the upcoming clinical readout because disappointing or merely adequate data could trigger further valuation pressure. Moderna Stock Has Run Too Far, Too Fast
• Negative Sentiment: Moderna and Pfizer recently lost bids to exit Bayer’s U.S. mRNA patent lawsuit, leaving a potential legal and financial overhang for Moderna. Pfizer and Moderna lose bids in Bayer mRNA patent lawsuit

Analysts Set New Price Targets

Several equities research analysts have weighed in on MRNA shares. The Goldman Sachs Group upped their target price on Moderna from $67.00 to $120.00 and gave the stock a "neutral" rating in a report on Wednesday, August 19th. Morgan Stanley raised their price target on Moderna from $39.00 to $89.00 and gave the company an "equal weight" rating in a research note on Thursday, August 20th. Jefferies Financial Group restated a "hold" rating on shares of Moderna in a report on Wednesday, August 19th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Moderna in a research note on Wednesday, September 9th. Finally, Wolfe Research upgraded shares of Moderna from an "underperform" rating to a "peer perform" rating in a report on Tuesday, August 25th. Seven research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $77.83.

Moderna Stock Performance

The firm has a market cap of $74.73 billion, a price-to-earnings ratio of -23.43 and a beta of 1.10. The company has a debt-to-equity ratio of 0.09, a current ratio of 2.29 and a quick ratio of 2.18. The firm has a fifty day simple moving average of $117.42 and a two-hundred day simple moving average of $76.99.

Moderna (NASDAQ:MRNA - Get Free Report) last posted its quarterly earnings data on Friday, July 31st. The company reported ($1.97) earnings per share (EPS) for the quarter, beating the consensus estimate 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 firm had revenue of $145.00 million for the quarter, compared to the consensus estimate of $102.93 million. During the same quarter in the prior year, the company posted ($2.13) earnings per share. The company's revenue for the quarter was up 2.1% compared to the same quarter last year. On average, analysts expect that Moderna, Inc. will post -6.09 EPS for the current year.

Insider Buying and Selling

In other Moderna news, insider Shannon Klinger sold 3,471 shares of Moderna stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $139.95, for a total value of $485,766.45. Following the completion of the transaction, 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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 dated Tuesday, September 15th. The shares were sold at an average price of $146.07, for a total value of $5,883,845.67. Following the completion of the transaction, the president owned 1,562,029 shares of the company's stock, valued at approximately $228,165,576.03. This represents 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. Over the last three months, insiders have sold 118,882 shares of company stock valued at $16,862,280. Corporate insiders own 10.80% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Allied Private Wealth LLC purchased a new stake in Moderna in the 2nd quarter valued at $30,000. Canton Hathaway LLC purchased a new position in shares of Moderna during the 1st quarter worth $31,000. Archer Investment Corp acquired a new position in shares of Moderna during the 2nd quarter valued at about $36,000. Assetmark Inc. boosted its position in shares of Moderna by 35.1% during the 1st quarter. Assetmark Inc. now owns 801 shares of the company's stock valued at $41,000 after acquiring an additional 208 shares during the last quarter. Finally, Frazier Financial Advisors LLC purchased a new stake in shares of Moderna in the second quarter valued at about $45,000. Hedge funds and other institutional investors own 75.33% of the company's stock.

About Moderna

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.

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.