The stock of vaccine manufacturer Novavax has fallen in 2022. The company’s COVID-19 protein-based vaccine, Nuvaxovid, has gone on sale in Europe and is awaiting CDC approval to go on sale in the United States. The fourth COVID-19 vaccine to receive U.S. FDA approval was announced on July 13; however, the CDC must still approve it before it can go on sale. Fiscal Q1 2022 marked the first profitable quarter in company history. When it comes to this situation, it’s best to buy the rumor and sell the news. From a low of $6.26 in February 2020 to a record high of $331.68 in February 2021, the COVID-19 pandemic sent Novavax shares soaring.
The vaccine from Novavax has now received FDA approval for those who have not yet received a Covid shot. More than 10% of persons in the US fall into the category.
But Two Warnings Caused Shares to Drop
- In a similar vein to the FDA’s cautions for Moderna’s (MRNA) and Pfizer’s (PFE) shots in boys and young men, the FDA cautioned against the potential of heart inflammation in recipients of the shot.
- Following two occurrences, the European Medicines Agency also added a warning to the Covid vaccination regarding anaphylaxis, a severe allergic reaction.
In anticipation of eventual approval, the Department of Defense has acquired an initial 3.2 million doses of Novavax’s shot. The vaccination from Novavax is also utilized internationally, especially for younger populations.
Pfizer, Moderna, and Novavax are developing Covid boosters targeting the B.A.4 and B.A.5 omicron sub-variants. In the fall, the FDA plans to start a promotion effort. To combat an earlier sub-variant known as B.A.1, European officials intend to utilize boosters already created. B.A.1 no longer explains any Covid cases in the United States, though.
Side Effects Grab Headlines
The European Medicines Agency recently announced that severe allergic reactions, including paraesthesia and hypoaesthesia, will be added to the label as a side effect. According to its U.S. and Mexican trials, the vaccine has a 90.4% effectiveness rate. Nuvaxovid is the company’s first FDA approval in 35 years, so that it may be a one-hit wonder.
Novavax has a meager 78 million share float with a 19 percent short interest, $20.11 in cash per share, and no long-term debt. But the top three have already won the race for the COVID-19 vaccine, and there aren’t many signs that there will be much of a market in the United States. Investors anticipating a recovery to previous highs must think twice before using opportunistic exit levels.
Novavax Stock Predictions
The business consistently posts losses every year; that continued last year. Novavax experienced a per-share loss of $7.27 in 2020 that increased to $23.44 in 2021. In 2021, analysts projected a loss of $13.70 per share. Analysts predict that Novavax will profit this year with per-share earnings of $24.29.
Losses are frequent for newly commercial biotech companies, which often invest in research and development, it is crucial to remember, although they are not preferred from a CAN SLIM standpoint.
Revenue in last year was over $1.15 billion, which was less than the $1.26 billion forecast. However, revenue increased by 141%. Analysts that follow NVAX stock anticipate $4.27 billion in earnings this year. Sales of $4 billion to $5 billion are anticipated by the corporation.
Investors with a keen eye will seek out businesses reporting recent quarterly revenue and profitability growth of at least 20% to 25%. In the first quarter, Novavax started to turn a profit. Equities with a track record like Novavax’s are speculative and more dangerous for growth investors.
Is Novavax Stock a Buy or Sell?
The shares of Novavax were not a buy as of now. Although the shares were above their 50-day line, no new chart pattern is now taking shape. When a stock reaches a buy mark and is in its 5 percent chase zone, investors are urged to buy it.
NVAX stock is beset by years of losses, and its revenue is still meager. It will be crucial to monitor how sales fare. Additionally, it’s critical to watch Novavax’s earlier-stage programs.
Conclusion
The consensus projections have an appealing buy rating with a price target of $126.50 and an upside potential of 81.34 percent, but this does not persuade us. The stock will be fortunate to hit $100 in the next weeks, giving those wishing to cash out a cozy cushion. Given that we could feel a little more optimistic now than before, it will be interesting to observe how NVAX performs in FQ2’22. All the best to you!
