The coronavirus vaccine trade ends after the market aggressively bid a few names to unsustainable high prices. Moderna (NASDAQ: MRNA) skyrocketed more than 2,300% to an all-time high of $497.49 per share between February 2020 and August 2021. Since then, a combination of declining cases, easing or being struck down vaccine mandates, and general market weakness has taken its toll on vaccine manufacturers.
The Centers for Disease Control and Prevention reported earlier this month that more than 90 percent of the American population lives in an area where it is safe to avoid wearing masks indoors. As the Omicron variant surpassed the more lethal Delta strain, governments relaxed mandates for covers, social distancing, and, most importantly, vaccination.
Boost MRNA Stock
Moderna reported better-than-expected fourth-quarter results on February 24. Revenue of $7.2 billion was up more than 1,160 percent year on year, easily beating the consensus estimate of $6.7 billion. This impressive growth was mainly due to strong sales of the COVID-19 vaccine. Diluted earnings per share of $11.29 were also significantly higher than the $9.80 per share expected.
This year, Moderna anticipates $19 billion in vaccine sales based on signed advance purchase agreements, with an additional $3 billion in signed options.
mRNA stock increased by 15% in a single day following the earnings announcement. However, shares failed to regain control of their 20-day moving average and fell.
According to Stock Rover, mRNA stock receives a perfect 100/100 on quality a quant scoring service. It also has a high-value score of 95/100. According to Stock Rover, Moderna’s fair value is $255.31, 85 percent higher than the current price. On the back of the bearish market sentiment, MRNA stock could continue to fall. Long-term investors, on the other hand, should ignore the volatility.
In the near term, Moderna will hold its Annual Virtual Vaccines Day on March 24, which may raise awareness and act as a bullish catalyst for the stock.
Moderna stock is currently out of favor, but the sentiment will change for the better in the future.
Russia Extends Stock Trading Suspension
The Russian stock exchange has been closed since February 25 due to the country’s invasion of Ukraine. The central bank stated that its decision on trading between March 21 and March 25 announced later.