Moderna Therapeutics is a well-known pharmaceutical company that specialises in vaccine technologies. The company has led the race in developing a vaccine for Covid-19 helping the Moderna share price to surge higher. But what is the Moderna stock price forecast for this year? What are the analysts’ forecasts for a Moderna stock target and how can you buy the stock with zero commissions?
In this guide on ‘How to Buy Moderna Stock,’ we answer these questions and more!
In This Guide
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In order to decide whether or not to buy Moderna stock, it is important you do your research into the company. Moderna stock news will have a big impact on the company’s share price as does the progress of the Moderna vaccine which is a big moneymaker for the biotech and healthcare companies.
To help you decide whether Moderna stocks are a good investment or not, we have done a detailed Moderna stock analysis and present our findings to you below.
Understanding the company you are investing in is essential. The more you know and understand how it makes its money, the more likely you’ll stick with the company as the share price moves up and down.
Moderna is a biotechnology company based in the United States, specialising in vaccine technologies. The company focuses on vaccines that can be given through mRNA (messenger RNA) technology which involves inserting synthetic sequences into human cells which then reprograms the cells to prompt an immune response.
The company only launched in 2010 and went public in 2018. It is now a leader in the production of a vaccine to help fight off Covid-19.
Moderna’s stock price has been on an incredible run higher since its IPO (initial public offering) in December 2018 on the technology-focused NASDAQ stock exchange. The IPO went down in the history books as the biggest one ever for a biotech company, raising more than $7.5 billion.
Since going public on December 6, 2018, at an IPO price of $23 per share, the stock has risen sharply to gain more than 1,500% since. The current Moderna market cap is more than $123 billion – up nearly $100 billion in the last year alone due to the coronavirus pandemic.
The record high for the stock was $449.38 recorded on September 10, 2021. With the current price trading below this, it is no wonder demand for learning how to buy Moderna stock has increased.
Moderna’s income was actually falling from 2017 to 2019 before a huge increase over the pandemic in 2020. During this fiscal year, Moderna’s revenues increased 1,234.4% to more than $800 million largely due to the Moderna vaccine for Covid-19.
The cash flow for the company is also looking strong with cash flow per share at 9.23 and revenue per share at 16.29. The Moderna price-to-earnings ratio (p/e ratio) is 38.06 which is healthy when looking at the biotech sector as a whole. Most profitable biotech companies trade at 25 to 40 times their earnings.
Moderna’s balance sheet shows 8.99% total debt to equity and 6.46% long-term debt to equity figures. The current ratio of 1.24 is in a healthy range as anything over 1 is considered good meaning the company has more than enough cash to cover its liabilities.
Dividend stocks can be a great addition to your portfolio. Unfortunately, Moderna does not pay a dividend and is unlikely to do so in the near future. This is common for technology companies and biotechnology companies.
As these companies are considered high-growth, they tend to reinvest any profits back into the business to grow more, rather than pay out dividends to shareholders. In some cases, this can lead to a higher stock price in the long run.
For example, Apple went public in 1980 and did not start paying a dividend till 2012 as it reinvested all the profits back into the company to grow to a certain level.
As institutional investors are now focused on the ESG (Environment, Social, Governance) ranking of a company it is worthwhile taking into consideration. Unfortunately, Moderna has a low to average ESG ranking and trails behind the average for the biotech industry.
The average ESG ranking for more than 938 biotech companies is around 75%. Moderna scores only 45% so is trailing behind some of its peers.
The Moderna stock forecast for the next twelve months varies among analysts. During the coronavirus pandemic, the Moderna stock price forecast was overwhelmingly bullish. However, now that the Moderna vaccine for Covid-19 has been developed and bought by governments some of the Moderna stock forecasts have been trimmed.
Based on twelve different analysts’ rankings over the past three months, the highest Moderna stock price forecast is $485.00 and the lowest Moderna stock forecast is $115.00. However, there are still more analysts who have a buy rating on the stock than a sell rating.
eToro actually provides this level of research free for live account holders. Once you have logged into eToro, click the Research tab to find Analyst Consensus & Price Targets, Hedge Fund Activity, Insider Transactions, and much more to help you with your stock analysis.
Currently, Moderna has more than 24 experimental drugs and vaccines in development for cancer and infectious diseases. The company’s only commercial product is the Moderna Covid-19 vaccine which is probably the most well-known. The codename for this vaccine is mRNA-1273 and is sold under the brand name Spikevax.
It was only in March 2020, that the CEO of Moderna Stéphane Bancel told the Trump (now Biden) administration that Moderna could have a Covid-19 vaccine within a few months. The next day, the company received $483 million in funding to develop it and an FDA approval for clinical trials.
By December 2020, phase III clinical trials were completed and the Moderna Covid-19 vaccine was approved for emergency use by the FDA and other regulators. The price tag was $32 – $37 per dose. Moderna’s second Covid-19 vaccine entered into phase I clinical trials on March 15, 2021.
On June 25, 2021, the FDA added a warning to Moderna’s vaccine for Covid-19 regarding rare cases of myocarditis (heart inflammation). In October 2021, a Bloomberg report highlighted Nordic countries such as Finland, Sweden and Denmark restricted the use of Moderna’s Covid-19 vaccine in young people due to they myocarditis side effect.
There are a few themes surrounding the Moderna stock price that are important to know when considering if Moderna stock is a good buy.
The Food and Drug Administration (FDA), is scheduled to meet Moderna and Johnson & Johnson in October 2021 to discuss Covid vaccine booster shots. More than 5.3 million booster shots have been given in the US, according to data from the CDC.
This has mainly been from the Pfizer and BioNTech vaccine. More booster shots ordered from the government could help Moderna’s stock to increase further on the potential revenue increase.
Moderna is currently developing a vaccine that combines a booster shot against Covid-19 with its own experimental flu shot. The plan is to create an annual vaccine for the respiratory syncytial virus (RSV) and other respiratory diseases.
According to Moderna’s CEO, the company could be the first to market this product representing a huge opportunity for an increase in revenue and its stock price. This is an important step for investors who have been concerned about sales after the pandemic is over.
Moderna’s stock price took a hit after pharmaceutical competitor Merck announced a promising antiviral Covid-19 pill that reduces hospitalizations in Covid-positive people who are unvaccinated.
However, many scientists have come out and expressed concerns about the safety of the pill. Issues with the development and production of this pill are likely to keep Moderna’s vaccine and booster shots in strong demand.
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It’s clear to see that many analysts and investors are interested in where Moderna could be trading in the next few months and whether it is a buy or sell. While much of Moderna’s growth came from the coronavirus pandemic, there are still offshoots from this which could help increase the company’s market cap and share price.
While analyst ratings were overwhelmingly bullish during the pandemic period, some forecasts have now been trimmed. But, of the twelve sell-side analysts ranked by eToro’s research platform, there are still more buy ratings than sell ratings on the stock.
Much of Moderna’s share price direction will depend on the order of Covid booster shots, as well as the development of the combination vaccine (Covid booster shot and the company’s experimental flu shot). The CEO believes they could be the first to market this product which could be a huge boon for the company.
As with any form of investing, keep the risk low and build positions as the market narrative and theme becomes clearer ensuring you can survive on any downside potential but you won’t miss out on any upside potential either.
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Moderna is a US-based biotechnology company that specialises in vaccine technologies using the mRNA system.
As Moderna is a publicly listed company, it is owned by its shareholders. The top shareholders of Moderna are Robert S. Langer, Noubar B. Afeyan, Flagship Pioneering Inc and Baillie Gifford & Company.
Moderna is based in the United States in Cambridge, Massachusetts.
Currently, Moderna stock is trading at $304.91.
There are currently more analyst buy ratings on the stock than sell ratings due to the impact of increased revenue from Covid booster shots and the company’s combination vaccine.
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