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Moderna Inc. (MRNA) fell 11.4% on Friday after component Dow Merck and Co. Inc. (MRK) reported positive clinical results for a pill aimed at reducing hospitalizations and deaths from COVID-19 . If emergency use is approved, patients will be able to take the pill after infection, but it will not replace the billions of vaccines still needed to immunize the planet. The decline added to a string of losses since late September, bringing the total weekly loss to 19.44%.
The pure COVID game
MRNA’s free float is only 344 million shares, well below the billions of Merck, Pfizer Inc. (PFE) and AstraZeneca PLC (AZN), generating volatile price action that is heavily influenced by pandemic catalysts. , positive and negative. In fact, shareholders have been deceived by price swings of 80 points or more, up and down, four times since the end of July. Unfortunately, accumulation deteriorated sharply in the last dip, exposing the stock to a deep correction in the fourth quarter.
However, the future is bright for the Cambridge, MA juggernaut, which has held the most significant biotech patents since statins first hit the market in the 1980s. growing portfolio “during a research and development day last month, with ongoing trials and treatments for the COVID, RSV + hMPV, Epstein-Barr recall and forms of cancer. In addition, he announced that 37 programs are currently in development, 22 of which are undergoing clinical studies.
Wall Street and the technical outlook
Wall Street consensus is mixed after Moderna’s historic gains, with a “Hold” rating based on 5 “Buy”, 7 “Hold” and 1 “Underweight” recommendations. In addition, three analysts recommend that shareholders close their positions and move aside. Price targets range from a low of $ 85 to a high of $ 485, while the stock closed Friday’s session more than $ 100 below the median target of $ 453. It is instructive to note that analysts have been terribly wrong on the trajectory of the pandemic since the start of 2020.
Moderna went public at age 22 in 2018 and traded in a range of 11-30 in 2020 when it erupted into a powerful but highly volatile uptrend. It broke through resistance in the 80s in November and another barrier at 160 in June 2021, entering a final wave that hit an all-time high at 497.49 in August. The stock has just collapsed from a double-top pattern, favoring a downside that could offer a low-risk buying opportunity at the July unfilled gap of 260-271.
For an overview of this week’s economic events, check out our economic calendar.
Disclosure: The author did not hold any position in the above titles at the time of publication.
This article originally appeared on FX Empire
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