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
-
Stock Market Winners and Losers of the 'Big, Beautiful' BillDefense, manufacturing and tech should prosper, while health care and green energy stocks face hurdles.
-
I'm a Financial Planner: Here's How to Invest Like the Wealthy, Even if You Don't Have MillionsPrivate market investments, once exclusive to the ultra-wealthy and institutions, have become more accessible to individual investors, thanks to regulatory changes and new investment structures.
-
Four Ways a Massive Emergency Fund Can Hurt You More Than It HelpsSaving too much could mean you're missing opportunities to put your money to work. Redirect some of that money toward paying off debt, building retirement funds, fulfilling a dream or investing in higher-growth options.
-
With Buffett Retiring, Should You Invest in a Berkshire Copycat?Warren Buffett will step down at the end of this year. Should you explore one of a handful of Berkshire Hathaway clones or copycat funds?
-
I'm a Financial Planner: How to Dodge a Retirement Danger You May Not Have Heard AboutTiming is everything, and sequence of returns risk can mean the difference between a retirement nest egg that's overflowing … or empty.
-
Caring for Aging Parents: An Expert Guide to Easing the Financial and Emotional StrainEarly conversations, financial planning and understanding the progression of care needs can help to mitigate stress and protect family relationships.
-
Dow Adds 238 Points as UNH, CAT Pop: Stock Market TodayThe lack of a September jobs report didn't seem to worry market participants, with the data delayed due to the ongoing government shutdown.
-
I'm a Financial Adviser: The OBBB Is a Reminder for Older People to Have a Long-Term PlanThe new tax bill presents a good opportunity for retirees to revisit tax plans, look into doing some Roth conversions and consider plans for long-term care.
