The stock sale at its peak and the general rebound in stocks did not help Moderna (NASDAQ:MRNA). After shares peaked at $87, speculators dumped the stock on valuation concerns.
For the near-term, the chances of another strong bounce appear unlikely. But fundamentally strong prospects suggest that investors should keep this stock on the watch list.
Moderna unnerved investors when it took advantage of the stock’s rise and sold $1.34 billion worth of stock, announced on May 19. At $76.00 a share and 17.6 million shares, the company will have strong cash on hand to fund the next stages of its COVID-19 vaccine. It may also fund its other antiviral projects. The stock sale ultimately strengthens the company’s future. Still, automated insider selling did not help matters.
In the next few weeks, MRNA stock may fade like Gilead (NASDAQ:GILD) did. The company no longer has the speculative buying momentum. Plus, when the broader market is up, the stock has fewer buyers that are willing to buy the stock at current levels.
Investors will look next to Moderna’s clinical results before deciding how to play Moderna stock. The company’s science day will not add any new insight on the results but it will build familiarity in its science technology.
Most investors have MRNA stock on the watch list. Until the company reports anything new, it is a stock to monitor for now.