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.
In this guide we discuss ‘How to Invest in Moderna Stock,’ and review the company’s financials and price history.
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In This Guide
If you only wish for us to provide quick instructions on how to invest in Moderna stock, then we show you how to do so in the steps below.
To start stock trading, you need to choose the right broker that can cater to your investing needs. In the sections below, we review some of the popular brokers that allow investors to purchase Moderna stock.
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In order to decide whether or not to invest Moderna stock, it is important you do your research into the company. In the sections below, we talk about the company in general, along with a history of the Moderna stock price.
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 invest in 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 coronavirus vaccine.
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 well.
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.
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.
Now that you know everything you need to know about Moderna stock, you can analyse the information and make a decision on whether or not you wish to invest in the industry.
Should you choose to do so, you may want to pick a suitable brokerage that will cater to your investing needs. In the sections below, we will show you how to begin trading with the chosen broker of your choice.
Head over to the homepage of your chosen broker and begin the account set-up process. You will be required to fill in your personal details – including your full name, email address and mobile number. Create a username and password for the platform to continue.
Most popular brokers are regulated – which is why users may be required to verify their accounts. To do this, simply upload proof of ID (a copy of your driver’s license or passport) and proof of address (a copy of a bank statement or utility bill). Once these documents have been uploaded, your broker should verify them in a couple of minutes.
The next step is to deposit funds into your trading account. Most brokers may support 1 or more of the following payment methods:
Choose your preferred payment option and deposit the funds into your account.
Once your account has been funded, proceed to search for Moderna stock on your platform’s search bar. Fill in the amount you want to credit into the trade, and confirm your transaction.
In this guide, we have reviewed and analysed the Moderna stock, along with the company’s fundamentals and past performance. These pieces of information can be used by you to review and make an investment decision on whether or not you choose to invest in the stock.
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.
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