What is Moderna
Moderna, Inc. is a Cambridge, Massachusetts-based pharmaceutical and biotechnology business that specializes in RNA therapies, particularly mRNA vaccines. To elicit an immunological response, these vaccines use a copy of a molecule called messenger RNA (mRNA).
The Moderna COVID-19 vaccine is the company's only commercial product. There are 23 therapy and vaccine candidates in the company's pipeline, 15 of which have entered clinical trials. Influenza, HIV, respiratory syncytial virus, Epstein–Barr virus, Nipah virus, chikungunya, a single-shot COVID-19 booster and influenza vaccine, a cytomegalovirus vaccine, and two cancer vaccines are among the vaccine possibilities. Candidates for cancer immunotherapy using OX40 ligand, interleukin 23, IL36G, and interleukin 12 are also in the company's pipeline, as is a regenerative medicine treatment that encodes vascular endothelial growth factor A to stimulate blood vessel growth for patients with myocardial ischemia, developed in collaboration with AstraZeneca.
Moderna is a publicly traded company, making its stock available to anyone of legal age interested in purchasing shares.
Why Buy Moderna Shares (MRNA)
Moderna shares represent a unit of ownership in Moderna Inc. – and they are considered to be amongst the most traded financial instruments around the globe. The company received positive feedback on the efficacy of its COVID-19 vaccine, Moderna this race during the pandemic, causing its share price to jump.
Moderna shares will rise and fall in value according to how well the company is performing at a given moment in time. Better-than-expected earnings will make Moderna share prices rise, while weaker earnings will make share prices fall. However, there are many reasons why a company's share price can change.
People trade Moderna shares because, just like other financial instruments, they can be an opportunity to invest money. At a basic level, you can take a position on Moderna shares to get exposure to economic growth. If an economy is in good shape, you might find that companies operating in that specific economic branch or industry will grow too.
Company growth is correlated with share price increases, which is what people are hoping for when they buy Moderna shares.
In December 2018, Moderna became a public company via the largest biotech initial public offering (IPO) in history, raising $621 million (27 million shares at $23 per share).
Through year-end 2019, Moderna had accumulated losses of $1.5 billion since inception, with a loss of $514 million in 2019.
By the end of 2021, Moderna expects to generate as much as $18 billion in sales from its COVID vaccine. That's not bad given that in 2020, its top line came in at just $803 million. For 2022, the company projects that its revenue will be within a range of $17 billion and $22 billion.
Moderna's exponential rise in share price directly correlates with the growing hype surrounding its coronavirus vaccine candidate. The company ended 2021 with its stock selling for about $300, after climbing to almost $500, or a 2,000% increase since the IPO.
Moderna (NASDAQ: MRNA) stock already brought investors a 434% gain last year -- and it's heading for a 160% increase in 2021. That's after the biotech company became the second to commercialize a coronavirus vaccine -- and claimed the title of the market leader along with Pfizer. Moderna's first-ever product also has made a big impact when it comes to earnings. The vaccine is generating billions of dollars in revenue and profit every quarter.
Moderna stock is traded on the Nasdaq stock exchange under the MRNA ticker.
If all that makes you want in on Moderna’s fintech growth, here is everything you need to know to buy Moderna stock & shares to invest in MRNA.
How to Buy Moderna Shares
Learning how to buy shares may not sound complicated, but you will need to do some research — and learn the basics — before making your first investment.
- Learn the difference between investing and trading
- Review Moderna’s performance and outlook 2022
- Understand the risks and charges
- Access the trading platform and place your orders
- Stay up to date with the latest news and rumors about Moderna
1. Learn the difference between investing and trading
People have two options to buy shares of stock online. Firstly, they can buy shares in companies on the exchanges where they are listed. For instance, you can buy Moderna stock on the NASDAQ exchange, so you own a share in the company (investor). Alternatively, they can buy Moderna shares without owning them, speculating on the price of the underlying asset (trader).
Investing and trading are similar terms that some people will sometimes use interchangeably – but there are significant differences for you to be aware of.
Investing in Moderna Stock
Investors buy Moderna shares hoping their price will rise and they can sell them later for a profit, adhering to the basic principle of buying low and selling high. Investors will take positions over a longer period, attempting to profit from share price changes as well as dividend payments.
While this means that they might need more initial capital to get started when compared to trading, their losses would be capped at this initial price tag. That said, investors should be aware they might get back fewer returns than they initially invested.
Investors will buy Moderna shares to:
- Make a profit from the Moderna share price rising
- Receive an income from dividends if the company pays them
- Benefit from the effects of compounding
This last point requires investors to hold onto their shares for an extended period. That’s why you’ll sometimes hear the phrase ”time in the markets is better than timing the markets” when talking about share investments.
>> Learn how to invest in stocks
Moderna (or any single stock, for that matter) can be a very volatile investment. You can lower the risk by diversifying your investment holdings.
An index fund is a type of mutual fund or exchange-traded fund (ETF) with a portfolio constructed to match or track the components of a financial market index, such as the Standard & Poor's 500 Index (S&P 500). An index mutual fund provides a broad market exposure, low operating expenses, and low portfolio turnover. These funds follow their benchmark index regardless of the state of the markets.
MRNA currently makes up about 0.2% of the S&P 500, meaning 0.2% of each dollar you invest in an S&P 500 index fund goes to Moderna. If you want an index with an even larger MRNA representation, you might consider investing in a Nasdaq index fund, where MRNA accounts for almost 1% of holdings.
Biotech exchange-traded funds (ETFs) provide exposure to the performance of companies within the global pharmaceutical and biotechnology industry.
MRNA makes up 13.11% of IBBQ (Invesco Nasdaq Biotechnology ETF ), 12.75% of GERM (ETFMG Treatments Testing and Advancements ETF), 11.36% of BIB (ProShares Ultra NASDAQ Biotechnology), 10.41% of VFNX (iShares Biotechnology ETF), 9.47% of (Invesco DWA Healthcare Momentum ETF).
>> Learn what ETFs are and how do they work
Trading Moderna CFDs
On the other hand, traders might seek to capitalize on short-term share price gains. Rather than investing in the shares, traders speculate on the shares’ value. They can speculate on it rising by going long, as well as falling by going short.
Trading Moderna stock means that you are speculating on a share’s price movements with derivatives like CFDs. In other words, you are purchasing Moderna shares without taking direct ownership.
Leverage is available when you use this product, giving you full market exposure for an initial deposit – known as margin – to open your position.
For example, a trader who wanted to buy 100 Moderna shares CFD at $300.00 per share would only require $6,000 of trading capital, thereby leaving the remaining $24,000 available for additional trades.
But keep in mind that leverage can increase both your profits and your losses as they will be based on the full exposure of the trade, not just the margin requirement needed to open it. This means losses, as well as profits, could far exceed your margin.
With CFDs, you can ‘buy’ (go long) the shares if you think the Moderna stock’s price will rise, or you can ‘sell’ (go short) if you think the Moderna stock’s price will fall.
>> Learn what is CFD trading and how it works
Going Long Moderna CFD
Moderna has a sell price of $260.20 and a buy price of $260.50.
Moderna’s next earnings announcement is fast approaching, and you expect it to be good news.
You think the company’s share price will go up, so you buy 200 Moderna CFDs at $260.50 This is the equivalent of buying 200 Moderna shares.
Because in CFD trading you can use leverage, you do not need to put up the full value of Moderna shares. Instead, you only need to cover the margin, which is calculated by multiplying your exposure with the margin factor for the market you are trading.
So, if Moderna has a margin factor of 20%, your margin would be 20% of the total exposure of your trade (200 share CFDs x $260.50 = $53,000), which is $10.420.
If your prediction is correct:
When Moderna announces its results, it is clear the company had a successful quarter and as you had predicted, its share price climbs.
You decide to close your position when it reaches $295.50, with a buy price of $295.80 and a selling price of $295.50
You reverse your trade to close a position, so you sell your 200 CFDs for $295.50
To calculate your profit, you multiply the difference between the closing price and the opening price of your position by its size. $295.50– $260.50 = $35.00, which you multiply by 200 CFDs to get a profit of $7,000.
If your prediction is wrong:
Moderna’s results are worse than expected, and its share price immediately falls. You decide to cut your losses and sell your 200 CFDs at $251.70.
Your position has moved $8.8 against you, meaning you suffer a loss of $1,760.
Going Short Moderna CFD
Shorting with derivatives can be an effective way to protect your investments against downward price movements in your non-leveraged investment portfolio. Also, it can be a way to generate profits outright from shares that are falling in value. But when you go short, your potential losses are theoretically uncapped because there is no limit on how high a company’s share price can rise.
Here is an example:
Suppose Moderna shares are currently trading with a selling price of $260.50, and you think the price will go down. So, you decide to open a short CFD position on 100 Moderna shares CFD. A week later, the buy price reaches $200.00, and you close your position. This means you made $12,100 in profit ([260.50 - 200.00] x 100 = $6,050), excluding additional costs.
If the price rises, you register a loss. For example, if Moderna shares rose to a price of $275.30, you would suffer a $1,480 loss instead, excluding additional costs.
When you create a trading account with CAPEX, you will be able to:
- ‘Buy’ (go long) or ‘sell’ (go short) Moderna and other 2,000 international shares to speculate on their price rising or falling
- Take a position on our range of ETFs to get exposure to a basket of shares from an entire country, index, or sector that could be rising or falling in price.
- Trade a host of global indices to go long or short on the performance of an entire economy with a single trade.
- Use QuantX, the smart portfolio builder that helps you cover the popular industries and only invest in the top-performing stocks.
2. Review Moderna’s Performance and Outlook 2022
Before buying Moderna stock—or any stock (see our guide on how to buy shares)—it’s wise to do some research into the company’s financials, performance, and outlook. The easiest place to get started is through a company’s annual reports and quarterly reports. Public companies like MRNA are required to publicize detailed information about their financial health in these.
You can find these on Moderna’s investor relations site or by searching the Securities and Exchange Commission’s (SEC) database.
You may also turn to experts for their input. Brokerage companies frequently release commentary on major stocks and industries, and third-party evaluators like Trading Central provide comprehensive technical and fundamental analysis.
When you combine financial data with expert insight, you will be able to decide how much of your money you want to put into Moderna stock.
Moderna Shares Forecast - Fundamental Outlook
Before you load up the trunk with Moderna shares, pop opens the hood and see what you are really getting into. Remember, when you buy Moderna stock, you are purchasing a small portion of an actual business:
Moderna, Inc. engages in the development of transformative medicines based on messenger ribonucleic acid (mRNA). Its product pipeline includes the following modalities: prophylactic vaccines, cancer vaccines, intratumoral immuno-oncology, localized regenerative therapeutics, systemic secreted therapeutics, and systemic intracellular therapeutics.
Moderna's balance sheet, income statement, competition, and management (all explained in our guide on how to research stocks) will help you give the company a good once-over.
You can access research, analyst ratings, and other key information about Moderna via your brokerage account or a financial information website. If you like what you see, your next step is to consider whether Moderna fits into your current investment portfolio.
- Moderna's market capitalization is $129B
The biotech firm is relying on its mRNA (messenger RNA) technology. Messenger RNA is a type of RNA that carries the instructions for making protein in the body.
Spike proteins protect against the type of coronavirus that causes Covid-19. Moderna's vaccine contains mRNA that instructs the body to build a spike protein-like structure. The aim is that the immune system will respond by producing disease-fighting antibodies and T-cells. The latter number includes $4.81 billion in sales of its Covid vaccine. Both measures lagged expectations, though grew bullishly.
Though it's still early in the game, revenue growth has been huge, and profitability has been strong. CAN SLIM investors should look for stocks that have shown recent revenue and profit growth of 20% to 25%. The greater the expansion, the better.
Moderna is expected to earn $8.70 per share on $5.98 billion in revenue in the fourth quarter, according to analysts polled by FactSet. Earnings would rebound from a year ago's losses, and sales would increase by double digits.
The stock of Moderna has a Composite Rating of 66 out of a maximum of 99. The Composite Rating is a weighted average of a stock's most important fundamental and technical indicators. On those metrics, MRNA stock narrowly outperforms two-thirds of all equities.
However, MRNA stock has a low EPS Rating of 68, which reflects years of losses per share.
*Last update: December 2021. Source: Yahoo Finance
Moderna has never declared or paid a cash dividend and does not intend to pay.
Moderna Shares Forecast - Technical
Technical traders analyze price charts to attempt to predict price movement. The two primary variables for technical analysis are the time frames considered and the technical indicators that a trader chooses to utilize.
Our web-trading platform, for example, offers 6 chart types (including the famous Japanese candlestick chart) to help you analyze price performance across different timeframes. It also enables you to deal in an instant – directly from the charts. You will be able to open, close and edit positions in just a couple of clicks.
Trading charts always feature distinct patterns that technical analysts can use to interpret the behavior of buyers and sellers. These chart patterns can give traders an indication of where the market could go next. As you will notice when you look at a chart, the market will usually move in one overall direction or trend. There are three types of market trends: uptrends, downtrends, and sideways trends.
From a technical perspective, Moderna is currently developing a strong uptrend. When a stock reaches a key support level within the primary trend, investors are encouraged to buy it.
Moderna stock has fallen up to the 52-week moving average and the trendline of the primary trend (see the chart below), indicating a more likely continuation to the upside.
The a-b-c intermediate trend counter-trend lost momentum and the previous higher-high that followed the rebound from the key support level indicates bulls are in control.
A move below the key support zone indicates a change in trend, but for 2022 is more likely for the trend to resume and target new record highs, with a Fibonacci extension of the previous leg up.
To buy Moderna shares or not?
It is recommended to watch for stocks in the major long-term support area. We should buy Moderna shares at relatively cheap prices (compared to historical values), not expensive prices. Also, have an exit plan for how you will exit a profitable trade. Define how and why you will exit. Since we used to support to get into the trade, you may consider exiting just below a long-term resistance level.
If buying at support, and planning to exit just below resistance, the upside potential should outweigh the downside risk by at least 2:1 or even 3:1. That means that if you buy Moderna shares at $300, you should be reasonably able to get out of the stock at $240 or higher. In an absolute worst case you lose $60 a share, but based on the historical chart it is quite feasible to go up to $120/share or more. This is known as the risk/reward ratio, a key indicator when deciding to buy Moderna shares or not.
With CAPEX WebTrader, you can perform an in-depth analysis of the charts with 90 indicators (including moving average, MACD, RSI, and Bollinger Bands). The platform also supports an interactive trading activity with high-end research tools helping you interpret market data.
Analyst consensus - NEUTRAL
Neutral based on 16 analysts offering recommendations for Moderna stock in the last 3 months, the overall consensus is strong buy (by analysts ranked 3 to 5 stars):
- 35.7% Buy (13)
- 21.4% Sell (1)
- 42.9% Hold (2)
The price target on Moderna - $311.83
Based on 16 analysts offering 12-month price targets for Moderna in the last 3 months, the average price target is $311.83, with a high estimate of $468 and a low estimate of $125.
3. Understand the risks and charges
Trading can be seen as riskier than investing due to leverage. But investing also carries a risk – and there is no guarantee that your investments would increase in value, so you could receive back less than you initially invested.
Before deciding to trade in shares, you should take steps to manage your risk. We have courses at CAPEX Academy that take you through risk management and how to mitigate your exposure to risk in the financial markets.
Our costs and charges for trading vary depending on the product that you use to take a position.
Moderna (MRNA) CFD Trading Conditions
|SPREAD PER UNIT
|OVERNIGHT ROLLOVER - LONG
|OVERNIGHT ROLLOVER - SHORT
- Spread represents the difference between ASK price and BID price.
- Future Rollover adjustment consists of the difference in price between expiring contract and new contract as well as the spread of the CFD.
- Swap is the amount credited to or debited from an account where positions are held overnight.
- Inactivity fee represents the monthly amount deducted if no activity is recorded for 12 months in an account.
4. Access the trading platform and place your orders
To buy Moderna shares CFD with CAPEX Webtrader is very easy and intuitive. Opening an online trading account is as easy as setting up a bank account. Here are the steps:
Open an account or log in
First, create an account or log in on capex.com. To open an account, click the "Register" button and complete your details.
Once the platform is accessed, the registration process must be completed in order to operate with real money. Click "Complete the Registration and Start Trading".
To log in, from the CAPEX website, click on "Login".
Deposit funds into your account
To trade with a live account, it is necessary to deposit funds. This is done from the platform itself by clicking on the "Add funds" button:
Also, it is possible to trade on a risk-free demo account with a balance of € 50,000, which is ideal for getting to know the platform and testing trading strategies.
CAPEX offers you different payment methods: debit cards, credit cards, bank transfer, skrill, and more.
It is noteworthy that CAPEX does not charge any fees or commissions for depositing funds.
Look for Moderna shares
To view Moderna shares (MRNA) real-time price and chart on the trading platform can click on the "Search" icon located in the left panel or by clicking on "Shares" and then select the instrument, in this case, Moderna.
Use the indicators and drawings to analyze the chart
Click the indicators icon and select your favorite ones. There are trend-following, oscillators, volatility, and support/resistance indicators available. To learn how many indicators to use and how to combine then visit the Technical Indicators section in CAPEX Academy.
Set up the order to buy Moderna shares
To buy Moderna shares CFD, click on the "Buy" button and a window is displayed to configure the purchase order:
The number of Moderna shares to be purchased must be entered and it is allowed to set up a Stop Loss to limit the potential loss, and/or a Take Profit to close a profitable position once the Moderna stock reaches a specific price. These orders can be configured based on price, pips, cash value, or percentage.
To proceed with the purchase, click on "Place Order".
However, MRNA trading does not end here. You will want to check out the next step to make sure you are investing your money as well as you can.
Why Trade Moderna with CAPEX?
- Advanced AI technology at its core: Whether they prefer the web-based and mobile-ready WebTrader or favor the highly popular MetaTrader 5, we make sure investors make effective use of fast and reliable trade execution speeds, complex order and risk management tools, advanced charting options, powerful research tools in collaboration with highly-regarded platforms such as Trading Central or TipRanks.
- Trading on margin: Providing trading on margin (up to 5:1 for individual equities), CAPEX gives you access to the stock market with the help of CFDs.
- Trading the difference: When trading Moderna CFD, you do not buy the underlying asset itself, meaning you are not tied to it. You only speculate on the rise or fall of the Moderna stock price. Online trading with CFDs is nothing different from traditional trading in terms of strategies. A CFD investor can go short or long, set stop loss, take profit, and apply trading scenarios aligned with their objectives.
- All-round trading analysis: The browser-based platform allows traders to shape their market analysis and forecasts with sleek technical indicators. CAPEX provides live market updates and various chart formats, available on desktop, iOS, and Android.
- Focus on safety: CAPEX puts a special emphasis on safety:
- capex.com is a website operated by KW Investments Limited, which is authorized and regulated by the Seychelles Financial Services Authority, license number SD020.
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- Global partnerships: CAPEX is proud to be the Proud Sponsor of Juventus, one of the most prestigious football clubs in the world, a football club that has a special place in the hearts of the people of Italy, with a strong legacy and a dedicated community.
5. Stay up to date with the latest news and rumors about Moderna (MRNA)
Get the latest Moderna Inc. (MRNA) stock news and headlines to help you in your trading and investing decisions.
History of Moderna
Derrick Rossi, a 39-year-old Stanford University postdoctoral fellow in stem cell biology, studied a paper by Hungarian biochemist Katalin Karikó on RNA-mediated immune activation and her co-discovery of the nucleoside modifications that suppress the immunogenicity of RNA with American immunologist Drew Weissman in 2005.
As a new assistant professor at Harvard Medical School with his own lab, Rossi set out to build on their discoveries in 2007.
Rossi devised a method for altering mRNA by transfecting it into human cells and then dedifferentiating it into bone marrow stem cells, which could subsequently be differentiated further into desired cell types.
In 2010, Rossi approached Timothy A. Springer, a fellow Harvard University faculty member, who sought co-investment from Kenneth R. Chien, Bob Langer, and Noubar Afeyan's Venture Studio Flagship Ventures. They came up with the moniker "ModeRNA Theraputics" by combining the terms "modified" and "RNA," which also happens to contain the word "modern."
Stéphane Bancel, a former executive of BioMérieux and Eli Lilly and Company, was hired as CEO of Moderna by Afeyan, the company's major stakeholder, in 2011. The company was valued at a unicorn within two years of its inception. The startup raised $40 million in December 2012.
Moderna and AstraZeneca signed a five-year exclusive option deal in March 2013 to identify, develop, and commercialize mRNA for cardiovascular, metabolic, and renal illnesses, as well as specified cancer targets.
Moderna received a $240 million upfront payment as part of the agreement, which was described as "one of the highest ever initial payments in a pharmaceutical industry licensing transaction that does not involve a medicine already being tested in clinical trials."
In September 2013, the business announced that it has improved heart function in mice and increased their long-term survival by "redirecting [stem cell] development into cardiovascular cell types," which was a big step forward for regenerative medicine.
DARPA gave the business up to $25 million in October 2013 to research messenger RNA therapies.
The company raised $110 million in equity funding in November 2013.
Alexion Pharmaceuticals paid Moderna $100 million in January 2014 for ten product options to develop rare illness therapies using Moderna's mRNA therapeutics platform, including for Crigler-Najjar syndrome.
Moderna employees tested mRNA technology in Sprague-Dawley rats and cynomolgus monkeys at Charles River Laboratories' Montreal and Sherbrooke locations in November 2017. They discovered that "mRNA is a labile biological molecule and hence requires the deployment of protective delivery mechanisms to efficiently harness its potential," as the mRNA migrated beyond the injection site to the liver, spleen, bone marrow, and heart.
At Charles River Laboratories' Montreal and Sherbrooke facilities in November 2017, Moderna employees safely tested mRNA technology in Sprague-Dawley rats and cynomolgus monkeys. They discovered that "mRNA is a labile biological molecule that requires the deployment of protective delivery mechanisms to efficiently harness its potential," because the mRNA went beyond the injection site and was located in the liver, spleen, bone marrow, and heart.
The Moderna COVID‑19 vaccine, codenamed mRNA-1273 and sold under the brand name Spikevax, is a COVID-19 vaccine developed by Moderna, the US National Institute of Allergy and Infectious Diseases (NIAID), and the Biomedical Advanced Research and Development Authority (BARDA).
In March 2020, the Food and Drug Administration (FDA) approved clinical trials for the Moderna vaccine candidate, with Moderna receiving an investment of $483 million from Operation Warp Speed. Moncef Slaoui, then a member of the board of directors of Moderna, was appointed head scientist for the Operation Warp Speed project.
In July 2020, the Moderna COVID-19 vaccine candidate was shown to be immunogenic in a Phase I trial involving 45 volunteers aged 18–55 years.
On November 16, 2020, an interim analysis of Phase III clinical trials, which involved over 30,000 patients, showed that the Moderna COVID-19 vaccine candidate was 94.1% effective in preventing COVID-19 with only minor flu-like side effects.
On November 30, 2020, the trials were completed, confirming the interim findings and demonstrating that the vaccine candidate was 100 percent effective in avoiding severe COVID-19 cases.
In the United States, mRNA-1273 received an emergency use authorization (EUA) on December 18, 2020. It was approved for usage in the European Union on January 6, 2021.
Moderna has teamed with Lonza Group, a Swiss contract manufacturer, to create up to 1 billion doses by 2021.
*Last Update: December 2021. Source: Wikipedia