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In late 2020, when the world was searching for a vaccine or cure for COVID-19, the price action in Moderna Inc MRNA was discussed frequently on Benzinga’s PreMarket Prep show.
Once the vaccines were developed and the issue ended its miraculous rally, the issue was discussed less and less.
The issue is back with some good news Wednesday, and the corresponding price action makes it the Premarket Prep Stock of the Day.
Moderna’s Trading Range: Over the last two weeks, Moderna was in a well-defined trading range. The top of the range was on Oct. 6 at $127.64, with multiple highs in the $126 and lower $127 handles.
The bottom of the range was made on Sept. 29 at $115.03, and investors had only one other chance to buy near that low when it reached $115.41 two days later.
Double Dose Of Good News: Before the open Wednesday, the company announced Merck & Co., Inc. MRK exercised its option to jointly develop and commercialize a personalized cancer vaccine (mRNA-4157/V940) pursuant to the terms of its existing collaboration and license agreement.
In addition, the FDA authorized Moderna and Pfizer-BioNTech bivalent COVID-19 vaccines for use as a booster dose in younger age groups.
PreMarket Prep’s Take: When the issue was being discussed on the show Wednesday, it was already trading higher by over $8 at the $129 area.
“Is there a better run company than Moderna?” said co-host Dennis Dick. “They were so quick with the COVID-19 vaccine, along with Pfizer and BioNTech SE.”
Dick said he’s unsure whether the stock is a value trap.
“The question remains: will they be able to replace all the COVID-19 vaccine revenue?” he asked, adding: “I would love to add it to my long-term portfolio, but not under the current market conditions.”
MRNA Price Action: Off the news, the issue rallied far beyond the expectations of the co-hosts.
It continued to rise in the premarket and opened the regular session nearly $15 higher at $135.56. It continued in that direction until peaking at $141.47 and sharply reversed course. That level coincides with its Sept. 14 high of $141.82.
Sellers on strength turned into sellers on weakness as the issue swooned over $10 before finding intraday support at $131.04.
Moderna ultimately closed Wednesday’s session 8.28% higher at $130.72.
The discussion on the issue from Wednesday’s show can be found here:
Photo via Shutterstock.
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Image and article originally from www.benzinga.com. Read the original article here.