Moderna Share Price Forecast November 2021 – Time to Buy MRNA?

Shares of pharmaceutical and biotechnology company Moderna (NASDAQ: MRNA) are in the red, closing at $337.17 as of November 1^st (19:59 EDT). The world-famous vaccine maker is set to report its third-quarter earnings on November 4^th. It has already reported a growth in its quarterly revenue by more than 6,398% year-over-year which puts pressure on its Q3 results to deliver.

Moderna – Technical Analysis

According to Moderna’s financial statement, the current market cap of the company is at  $136.097 billion with total assets worth $16.153 billion. Revenue for 2020 was at $803.39 million with a profit margin of -92.99%, compared to $60.21 million in 2019.

 

Oscillators such as Relative Strength Index (14)(45.54), Stochastic %K (14, 3, 3)(72.92),  Commodity Channel Index (20)(44.), Average Directional Index (14)(22.57) and Neutral Awesome Oscillator(−18.67) are neutral. Moving averages such as Exponential Moving Average (30)(350.05), Simple Moving Average (30)(352.00), Exponential Moving Average (50)(353.27) and Simple Moving Average (50)(376.79) indicate a sell action.

68% of all retail investor accounts lose money when trading CFDs with this provider.

Recent Developments

Everyone in the market will keep an eye out for Moderna’s Q3 results, especially on how its sales and manufacturing operations will adjust in response to the anticipated need to make and deliver booster shots. This has been unanimously voted in favour of by the Food and Drug Administration’s (FDA) advisory committee. Moderna’s share valuation may go even further down the danger zone if the company’s financial performance is better than expected. On the other hand, weak results could present buying opportunities for investors who are price-sensitive.

The pandemic is the only source of revenue for the company and all attention is on its sales results and how it might affect future income. The most important aspect here is new advance purchase agreements (APAs) from customers which the company expects to reap $20 billion. The company could gain another $20 billion through 2022 and 2023 which could positively impact its share price. Moderna signed an APU with Peru for 20 million vaccine doses on September 24^th.

However, the company may struggle to serve the demand as already evidenced earlier this year when problems with the supply chain for vaccine components led to delayed delivery of doses to customers. While these problems have been largely solved, ongoing disruption to the global supply chain might cause these problems to reappear. The company expects to produce 2 to 3 million doses in 2022. Moderna was also onboarding new manufacturing collaborators including building a $500 million new manufacturing facility with an estimated annual output of 500 million in an undisclosed African country.

Should You Buy MRNA Shares?

Investors interested in Moderna have several positive aspects to fall back on. As one of the leaders in the COVID-19 vaccine market, the company expects revenue of $20 billion in sales from 2023, via mRNA-1273. Even beyond the COVID-19 vaccine, Moderna has a rich lineup of other potential vaccines for various infectious diseases and ailments. Moderna is also aiming to break into the gene-editing space.

However, at its current valuation, it looks like Moderna shares will be volatile moving forward, especially once the pandemic subsides. Thus, Moderna shares arent a buy right now. The shares aren’t forming a definitive chart pattern and has crossed the 50-day line which is indicating a sell signal. Moderna has managed to produce strong sales and growth, which analysts think will be able to sustain in the future. Investors should closely watch the company’s efforts in coronavirus vaccine distribution, which could help both the shares and the company’s financials. They can thus add the shares to their watchlist for the time being.

Buy MRNA at eToro with 0% Commission Now!