Novavax Stock Plummets as Company Raises Concerns

The shares hit a two-year low fresh out of the gate this morning

Laura McCandless

Deputy Editor

Mar 1, 2023 at 10:31 AM

NVAX

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.

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!