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Why Did Moderna Stock Spike 7.6% Yesterday?
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Why Did Moderna Stock Spike 7.6% Yesterday?

Story Highlights

Moderna’s vaccine studies are providing positive results in containing the growth of the virus. The company is preparing to supply next-gen bivalent boosters in August, as it expects a rise in infections from Omicron subvariants in early fall.

Shares of vaccine maker Moderna (NASDAQ: MRNA) shot up 7.6% yesterday after the company released positive results from its Phase 2/3 study of the bivalent (Omicron) COVID booster candidate, mRNA-1273.214. The vaccine has been shown to be effective against both the dominant subvariants, BA.4 and BA.5, in a study being conducted on approximately 800 participants.

After the intraday spike, MRNA stock closed up 4.7% at $136.07. Its stock has lost 42.1% so far this year.

Results of the Bivalent Booster Candidate

According to Moderna, administering a 50µg booster dose of mRNA-1273.214 one month after taking the vaccine or booster shot shows potent neutralizing antibody responses against both Omicron subvariants in all participants, irrespective of a history of prior infection.

As per the data, the booster exhibited a 5.4-fold boost in neutralizing antibodies against BA.4 and BA.5 in all participants and a 6.3-fold effect in the subset of seronegative (negative serum reaction) participants.

Based on the new and prior data, the company said it is working to complete regulatory submissions in the coming weeks requesting to update the composition of the booster vaccine to mRNA-1273.214.

On the occasion, Stéphane Bancel, CEO of Moderna, said, “In the face of SARS-CoV-2’s continued evolution, we are very encouraged that mRNA-1273.214, our lead booster candidate for the fall, has shown high neutralizing titers against the BA.4 and BA.5 subvariants, which represent an emergent threat to global public health.”

Analysts’ View

Encouraged by Moderna’s positive results against Omicron subvariants BA.4 and BA.5, combined with the earlier results for Omicron subvariant BA.1 and the Delta variant, Brooklyn Capital Markets analyst Leah R. Cann reiterated a Buy rating on the stock with a price target of $506, which implies a massive 271.9% upside potential to current levels.

Cann noted, “These developments continue to support our view that mRNA-1273, and follow-on vaccine booster candidates, have increasingly superior attributes and that these advantages will make mRNA-1273 and its successors a preferred COVID-19 vaccine.”

Overall, MRNA stock has a Moderate Buy consensus rating based on five Buys vs. five Holds and one Sell. The average Moderna price forecast of $221 implies 62.4% upside potential to current levels.

Stock Analysis

According to TipRanks’ Smart Score rating system, Moderna has a Smart Score of 7 out of 10, indicating that the stock is likely to perform in line with market expectations. Bloggers and news articles are bullish on the stock, and hedge funds have increased their holdings of MRNA stock by 2.9 million shares in the last quarter.

Meanwhile, corporate insiders have sold shares worth $40 million in the last three months, and retail investors have reduced their exposure to the stock by 1.3% during the last 30 days.

Ending Thoughts

As long as the COVID-19 pandemic continues to spread in different variants, vaccine makers are going to experience bolstered performance. Additionally, the new drugs in the pipeline, which continue to add to Moderna’s sales, bode well for the company in the long run.

Disclosure

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