Moderna (MRNA) stock is spiraling Wednesday, down more than 8% at last check. Today's slide follows Tuesday's nearly 12% rally that was sparked by Monday's report from the Centers for Disease Control and Prevention (CDC) on the first death in the U.S. connected to the H5N1 bird flu.
The CDC said "the risk to the general public remains low" and that "no person-to-person transmission spread has been identified," but the news has caused volatility in Moderna's stock because it is developing a bird flu vaccine.
In July 2024, Moderna received $176 million from the U.S. Department of Health and Human Services to accelerate the development of its pandemic influenza vaccine, mRNA-1018.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"This subtype of influenza virus causes a highly infectious, severe disease in birds called avian influenza and poses a risk for spillover into the human population," the company said in a statement. Moderna's mRNA pipeline tracker currently shows that vaccine is in Phase 3 studies.
As of January 6, the CDC noted that there have been 66 confirmed cases of the H5N1 bird flu in the United States since 2024, with only one other case occurring between 2022 and 2024.
Is Moderna stock a buy, sell or hold?
Moderna hit its all-time high back in 2021 when the healthcare stock was capitalizing on surging demand for its COVID-19 vaccine. Since its price peak near $484 in August of that year, shares have tumbled almost 90%. And Wall Street remains cautious on the drugmaker.
According to S&P Global Market Intelligence, the average analyst target price on the large-cap stock is $73.64, representing implied upside of about 70% to current levels. Despite the implied upside, the consensus recommendation is Hold.
Financial services firm Argus Research is one of those firms with a Hold rating on MRNA stock.
"We think that MRNA shares are appropriately valued at recent prices below $45," wrote Argus Research analyst Jasper Hellweg in a December 17 note. "We would consider an upgrade when the company is able to return to a period of earnings growth and when it has more of its product candidates approved and sold on the market."
Related Content
-
Six Warren Buffett Quotes Every Retiree Should Live ByThe 'Oracle of Omaha' knows a thing or two about life, investing and retirement.
-
Budget Hacks Won't Cut It: These Five Strategies From a Financial Planner Can Help Build Significant WealthCutting out your daily latte might make you feel virtuous, but tracking pennies won't pay off. Here are some strategies that can actually build wealth.
-
To Unwrap a Budget-Friendly Holiday, Consider These Smart Moves From a Financial ProfessionalYou can avoid a 'holiday hangover' of debt by setting a realistic budget, making a detailed list, considering alternative gifts, starting to save now and more.
-
Stocks Rise to End a Volatile Week: Stock Market TodayThe market's fear index reached and retreated from a six-month intraday peak on Friday as stocks closed the week well.
-
I Bought Palantir When It Was Trading at $8. Now It's $180 and I've Made $1 Million. What Do I Do?What do you do with all that appreciated Palantir stock? We asked a financial expert for advice.
-
Treat Home Equity Like Other Investments in Your Retirement Plan: Look at Its Track RecordHomeowners who are considering using home equity in their retirement plan can analyze it like they do their other investments. Here's how.
-
Why Does It Take Insurers So Darn Long to Pay Claims? An Insurance Expert ExplainsThe process of verification, investigation and cost assessment after a loss is complex and goes beyond simply cutting a check.
-
Two Reasons to Consider Deferred Compensation in the Wake of the OBBB, From a Financial PlannerDeferred compensation plans let you potentially lower your current taxes and help to keep you out of a higher tax bracket. It's important to consider the risks.
