After a stellar rally over the past couple of years, shares of Moderna (NASDAQ:MRNA) have reversed a substantial portion of their gains. It’s worth noting that this biotechnology company lost about 28% of its value in the past month.
Profit-taking and valuation concerns dragged Moderna stock down. Further, the Phase 1 data for its seasonal flu vaccine failed to lift investor sentiment.
In response to Moderna’s update, Morgan Stanley analyst Matthew Harrison stated that the Phase 1 data could put pressure on Moderna stock. He added that upside from the current product seems “unlikely.” Harrison has a Hold rating on Moderna stock.
Moderna could continue to benefit from the development and sales of Spikevax (its COVID-19 vaccine). The company expects the APA’s (advance purchase agreements) signed and commercial booster sales to drive its revenues in 2022.
Further, Moderna recently provided preliminary booster data for the Omicron variant. Commenting on the data, Needham analyst Joseph Stringer stated that the data “demonstrates that an mRNA-1273 booster dose generates strong neutralizing activity against the Omicron variant.”
However, he maintains a Hold rating on Moderna and believes the “success in COVID vaccine programs is fully reflected in the stock.”
While Stringer remains sidelined, investors and hedge funds have been offloading Moderna stock. TipRanks’ Stock Investors tool shows that about 6.7% of investors holding portfolios on TipRanks have decreased their exposure to Moderna stock in the last 30 days.
Furthermore, hedge funds have also decreased their holdings in Moderna. TipRanks’ Hedge Fund Trading Activity tool shows hedge funds sold 454.4K MRNA shares in the last three months.
Wall Street’s Take
Wall Street remains sidelined on Moderna stock. On TipRanks, Moderna stock has received 6 Buy, 6 Hold, and 3 Sell recommendations for a Hold consensus rating. Meanwhile, the average Moderna price target of $311.83 represents 22.8% upside potential to current levels.
Moreover, Moderna scores a 5 out of 10 from TipRanks’ Smart Score rating system, implying MRNA stock could perform in line with the broader market.
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Disclosure: On the date of publication, Amit Singh had no position in any of the companies discussed in this article.
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