Novavax (NASDAQ:NVAX) Shares Down 9.1% - Should You Sell?

Key Points

• Novavax shares fell 9.1% to about $11.65, with trading volume well below the stock’s average daily volume.
• Analyst sentiment is mixed but centers on a “Hold” rating; the consensus price target is $13.14, while Citigroup maintained a “Sell” rating with an $8 target.
• Novavax beat quarterly EPS and revenue expectations, but revenue declined 76.2% year over year, and the company remained unprofitable with a negative net margin.

Novavax, Inc. (NASDAQ:NVAX - Get Free Report) shares were down 9.1% on Friday. The company traded as low as $11.57 and last traded at $11.6480. Approximately 2,002,169 shares traded hands during mid-day trading, a decline of 61% from the average daily volume of 5,124,194 shares. The stock had previously closed at $12.82.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on NVAX. Wall Street Zen raised shares of Novavax from a "sell" rating to a "hold" rating in a research report on Saturday, September 12th. Citigroup reaffirmed a "sell" rating and set a $8.00 price objective (up from $7.00) on shares of Novavax in a research report on Thursday. Zacks Research lowered shares of Novavax from a "strong-buy" rating to a "hold" rating in a research note on Thursday, August 6th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Novavax in a research note on Tuesday, August 4th. Five equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, Novavax presently has an average rating of "Hold" and a consensus price target of $13.14.

Novavax Stock Performance

The company has a 50 day moving average of $10.00 and a 200 day moving average of $9.20. The firm has a market cap of $1.86 billion, a P/E ratio of -7.43 and a beta of 2.44.

Novavax (NASDAQ:NVAX - Get Free Report) last released its quarterly 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 business had revenue of $56.70 million for 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%. Novavax's revenue for the quarter was down 76.2% on a year-over-year basis. During the same quarter last year, the firm earned $0.62 EPS. As a group, analysts expect that Novavax, Inc. will post -0.38 EPS for the current fiscal year.

Institutional Trading of Novavax

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Duncker Streett & Co. Inc. grew its stake in shares of Novavax by 917.3% in the first quarter. Duncker Streett & Co. Inc. now owns 4,242 shares of the biopharmaceutical company's stock worth $35,000 after acquiring an additional 3,825 shares during the last quarter. KBC Group NV raised its position in shares of Novavax by 34.9% during the first quarter. KBC Group NV now owns 4,746 shares of the biopharmaceutical company's stock valued at $39,000 after buying an additional 1,229 shares during the last quarter. Allworth Financial LP raised its position in shares of Novavax by 292.5% during the second quarter. Allworth Financial LP now owns 4,353 shares of the biopharmaceutical company's stock valued at $41,000 after buying an additional 3,244 shares during the last quarter. Integrated Wealth Concepts LLC bought a new stake in shares of Novavax in the second quarter valued at about $42,000. Finally, Principal Financial Group Inc. bought a new stake in shares of Novavax in the first quarter valued at about $83,000. Institutional investors and hedge funds own 53.04% of the company's stock.

Novavax Company Profile

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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