Today at 4:30 AM ET, Novavax (NASDAQ:NVAX) stock rose 38% to $33.74 in the pre-market session. The stock rose following reports that the company received $384 million for its coronavirus vaccine candidate. Novavax also beat analysts’ revenue and earnings estimates in the first quarter. The company reported its first-quarter results after the market closed on Monday.
According to a MarketWatch report, “The company said the Coalition for Epidemic Preparedness Innovations will invest up to $384 million in the development of NVX-CoV2373, Novavax’s vaccine candidate for SARS-CoV-2, the coronavirus that causes COVID-19. Funding will be used for combined safety and effectiveness testing of the vaccine.”
Novavax’s Q1 results
Novavax posted an EPS of -$0.58 in the first quarter. However, analysts expected an EPS of -$0.70. In the first quarter of 2019, the biotech company posted an EPS of -$2.11. The revenue beat analysts’ estimate of $1.7 million but fell 15.2% YoY (year-over-year) to $3.4 million in the first quarter. The YoY revenue decline was due to the end of the Prepare™ trial last year.
Wall Street analysts expect Novavax to post sales of $1.6 million in the second quarter—a fall of 52.2% YoY compared to $3.4 million in the second quarter of 2019. Also, analysts expect the company to report an EPS of -$0.58 in the second quarter compared to -$1.69 in the same quarter last year.
Analysts’ recommendations and target price
As of Monday, seven analysts cover Novavax stock. Among the analysts, five recommend a “buy,” one recommends a “sell,” and one recommends a “hold.” Analysts have an average target price of $23.17 on Novavax. The target price implies a return of -5.4% based on the closing price of $24.50 on Monday. The consensus target price for the stock has risen from $20.17 in April—a growth of 14.9%.
Novavax’s stock returns
On Monday, Novavax stock rose 30.8% and closed at $24.50 with a market cap of $1.4 billion. The stock price has risen 35.7% in the trailing five-day period, while it has risen 515.6% year-to-date. Currently, Novavax stock is trading 7.0% below its 52-week high of $26.34 on April 20, 2020. The stock is also trading 592.1% above its 52-week low of $3.54 on November 21, 2019.
On Monday, Novavax stock was trading 25.8% above its 20-day moving average of $19.47. Meanwhile, the stock is trading 60.8% above its 50-day moving average of $15.24 and 126.9% above its 100-day moving average of $10.80. The stock’s 14-day relative strength index score of 69 suggests that it’s overbought.
Novavax has an upper Bollinger Band level of $23.58. The company’s middle Bollinger Band level is $19.47, while its lower Bollinger Band level is $15.36. On Monday, the stock closed near its upper Bollinger Band level, which means that it’s overbought.
On Monday, the Dow Jones Industrial Average fell by 109 points or 0.5%. Also, the S&P 500 and the Nasdaq Composite gained 0.02% and 0.8%, respectively. Read What US Stock Market Crash? S&P 500 Tests 3,000 to learn more.