During May and June, Novavax (NASDAQ: NVAX ) shares appeared to be making a major comeback. At the time, news of a partnership deal with pharma firm Sanofi (NASDAQ: SNY ), as well as another positive development, were driving Novavax stock “to the moon.” Since then, however, NVAX has given back a fair chunk of its late spring gains.
At one point trading for as much as $23.86 per share, the stock has pulled back to $12.50 per share.
Those who dove in during the height of the latest hype are sitting underwater. Even after this sell-off, further declines appear likely as sentiment keeps shifting back towards bearish. Nevertheless, you may not necessarily want to throw your shares into the toss pile just yet.
Even as investors went overboard with the “Sanofi surge,” I wouldn’t discount the potential for another needle-moving move higher for shares down the road. There’s Renewed Hesitancy About Novavax Stock Covid-19 put Novavax on the map but it never really hit the big time when it came to capitalizing on global vaccination demand resulting from the pandemic. Given this mixed track record, it makes sense that investors have again become hesitant to buy and hold Novavax stock.
In the eyes of the market, the various positive developments hinted above are now fully priced into shares, perhaps overly so. For instance, there is a potential upside from the Sanofi deal that is worth as much as $1.4 billion.
Even after NVAX’s pullback, shares remain up nearly threefold com.
