Why Moderna Stock Tested New Highs Today

Moderna Shares Keep Moving Higher After Strong Quarterly Report

Shares of Moderna gained strong upside momentum after the company reported its quarterly results and made an attempt to settle above $444.

Moderna reported revenue of $4.4 billion and GAAP earnings of $6.46 per share, easily beating analyst estimates on both earnings and revenue. The company noted that recent data suggested that its vaccine had 93% efficacy which remained durable through six months after the second dose.

Moderna noted that its dose capacity for COVID-19 vaccine in the full-year 2021 was between 800 million and 1 billion. In 2022, dose capacity is expected to increase to 2 billion – 3 billion, and the company has already signed advance purchase agreements for $12 billion.

Not surprisingly, the company’s Board authorized a share repurchase program of up to $1 billion over a two-year period, although it remains to be seen whether the company will begin to immediately repurchase its stock at current levels.

What’s Next For Moderna Stock?

Moderna stock continues to rally as the quarterly report indicates that the company enjoys financial success. Moderna has easily beaten analyst estimates, and its financial results will get even better in the upcoming quarters as demand for COVID-19 vaccines remains strong.

WHO has recently asked developed countries to drop plans for booster shots of COVID-19 vaccines at a time when poorer countries had serious problems with access to vaccines, but this plea will likely fall on deaf ears.

Thus, Moderna and other vaccine makers will enjoy strong demand from both developed countries, who need booster shots, and developing countries, who struggle to get any vaccines.

The key risk for Moderna’s shares right now is a pullback which may be triggered by profit taking. The stock started the year near the $100 level, and it has recently made an attempt to get to the test of the $450 level. In this light, traders should be cautious with new positions before a material pullback occurs.

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