Novavax executives have seized the chance to financial institution earnings and capitalize on the three,000% rally within the inventory’s share worth as speculators proceed to wager on the success of the COVID-19 vaccine that’s nonetheless below trial, Reuters experiences. Shares dropped nearly 3% in US buying and selling.
Novavax (NVAX) was solely value round $250 million a 12 months in the past, in accordance with Reuters, however since receiving $1.6 billion in funding below the “Operation Warp Velocity” program, it has change into a world participant within the race to develop a COVID-19 vaccine, and has seen its valuation spike by as a lot as $11 billion.
Novavax’s COVID-19 vaccine has proven promising ends in its preliminary trials and has signed provide offers with Japan, Canada, Australia, the UK and the US.
In keeping with a evaluate of SEC filings, Novavax CEO, Stanley Erck, bought $8.7 million value of his shares in 2020, which quantities to greater than 20% of his vested stake within the firm, Reuters reported. As well as, different Novavax executives bought one other $37.3 million value of shares throughout 2020.
Sanjai Bhagat, a finance professor on the College of Colorado instructed Reuters that members of the board ought to have insisted that the executives maintain onto their shares, as it might have incentivized the corporate’s leaders to make sure the profitable and speedy roll out of the vaccines. (See NVAX stock analysis on TipRanks)
B.Riley Monetary analyst Mayank Mamtani lately reiterated his Purchase ranking on NVAX setting a worth goal of $223. This means upside potential of round 91% from present ranges.
Mamtani was optimistic concerning the interim outcomes of the U.S vaccine research and believes that Novovax might have a giant position to play within the distribution of COVID-19 vaccines
Consensus on the Avenue is a Reasonable Purchase based mostly on 5 Buys and 1 Promote. The typical price target of $183.20 suggests upside potential of round 57% over the following 12 months.