Moderna Share Forecast January 2022 – Time to Buy MRNA?

Shares of American pharmaceutical and biotechnology company Moderna (NASDAQ: MRNA) are in the red today, after closing at $215.23 as of January 5^th (19:59 EST). With the Omicron variant spreading like wildfire across the United States, Moderna will benefit if vaccination and booster rates increase.

Moderna – Technical Analysis

Moderna’s financial statement indicates a market cap of $87.265 billion with total assets worth $20.923 billion. Revenue for 2020 was at $803.39 million with a profit margin of -92.99% compared to $60.21 million in 2019.

Oscillators for Moderna such as Relative Strength Index (14)(33.10), Stochastic %K (14, 3, 3)(4.38), Commodity Channel Index (20)(−171.58),  Average Directional Index (14)(15.95) and Awesome Oscillator(−33.37) are neutral. Moving averages such as Exponential Moving Average (10)(243.16),  Simple Moving Average (10)(242.65), Exponential Moving Average (20)(255.93), Simple Moving Average (20)(259.65) and Exponential Moving Average (30)(264.91) are indicating a sell action.

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Recent Developments

Moderna was granted Emergency Use Authorization for its coronavirus vaccine in 2020, which caused the shares to surge by 120% in 2021. The omicron variant has become the leading COVID strain in the U.S. since it was first detected in late November, now representing 70% of new infections. There are a number of organizations and private businesses that required vaccination in order to enter. According to data available as of December 2021, approximately 60% of all Americans were fully vaccinated, and 21% of fully vaccinated Americans had received a booster shot.

Over 73 million Americans, Moderna’s vaccine. Nearly 31 million people have received its booster. A recent study in the U.K. found that Moderna’s booster was better than other options. So, Moderna’s financials have been significantly impacted by the commercialization of its vaccine, despite competition from Pfizer and Johnson & Johnson. Its vaccine should continue to serve as a lucrative revenue generator if the disease becomes endemic.

Besides the Corona vaccine, Moderna’s cytomegalovirus (CMV) vaccine is well sought after, which is currently in phase 3 trials. CMV is a leading cause of birth defects and a successful vaccine for this disease would be the next step in Moderna’s business plan. In total there are 34 drug candidates in Moderna’s pipeline, which can help reduce the company’s reliance on Covid-related revenues.

Should You Buy MRNA Shares?

Investors interested in Moderna should see the impact that the vaccine had. For instance, its quarterly financial results were stellar. It reported a revenue of $5 billion for the quarter ended Sept. 30, 2021, compared to $157 million for the same period in 2020. Moderna also achieved revenue of $11.3 billion through the first nine months of 2021 compared to $232 million for the same period the prior year.

Moderna’s profitability profile has been stellar, which includes a reported net income of $3.3 billion for the quarter ended Sept. 30, 2021, compared to a net loss of $233 million for the same period in 2020. Because of this, net income also increased, recording $7.3 billion for the nine months ending on September 30^th 2021. These profits will improve its cash position, helping it to invest in future clinical studies which could lead to further scientific breakthroughs or additional honing to existing medications, such as its COVID-19 vaccine.

On the flipside, Moderna shares weren’t immune to the broader market pullbacks in November and December that affected high-flying tech stocks. There is a huge possibility that there are possibilities for new strains or that the disease becomes endemic, even if Omicron wanes in 2022. Considering this, you can easily add Moderna shares to your portfolio for the next year.

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