Novavax raised concerns about whether or not the company will be able to stay in business
Novavax Inc (NASDAQ:NVAX) stock is plummeting today, down 26.2% at $6.86 at last glance, earlier hitting a two-year low of $6.80, amid company concerns about whether or not it will be able to stay in business. The biotech name's Covid vaccine is its only marketed product.
The company also posted a dismal fourth-quarter report after the close yesterday, with wider-than-expected losses of $2.28 per share alongside a revenue miss. Jefferies cut its price target to $68 from $90 after the event.
Options traders are targeting the equity amid the negative price action. So far, 15,000 calls and 9,367 puts have been exchanged. The January 2025 10-strike put and weekly 3/10 7-strike call are the most popular, with new positions being opened at the latter.
The brokerage bunch is split on NVAX, with three of the six in coverage carrying a "strong buy" rating, and three a "hold" or worse. The 12-month consensus price target of $46.83 is a massive premium to current levels, leaving plenty of room for price-target cuts in the near future.
Year-over-year, NVAX is down 91.9%. The stock is also seeing pressure at its 40-day moving average. It's also worth noting that Novavax stock has landed on the short sell restricted (SSR) list today.