Moderna Stock Story

MRNA -  USA Stock  

USD 153.35  1.61  1.04%

While many traders are getting carried away by overanalyzing competition within healthcare space, it is quite reasonable to go over both, Moderna and Brickell Biotech as potential short-term investments. We are going to analyze some of the competitive aspects of both Moderna and Brickell.
Published over a month ago
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Should you drop your Brickell Biotech (NASDAQ:BBI) and Moderna (NASDAQ:MRNA) positions after a build up?
By analyzing existing basic indicators between Moderna and Brickell, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Brickell with a short position in Moderna. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Moderna has an asset utilization ratio of 92429.23 percent. This suggests that the company is making $924.29 for each dollar of assets. An increasing asset utilization means that Moderna is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Moderna or Brickell is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Moderna's Liquidity

Moderna financial leverage refers to using borrowed capital as a funding source to finance Moderna ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Moderna financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Moderna's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Moderna, but it might be worth checking our own buy vs. sell analysis

Correlation Between Moderna and Brickell Biotech

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Moderna together with similar or unrelated positions with a negative correlation. For example, you can also add Brickell Biotech to your portfolio. If Brickell Biotech is not perfectly correlated to Moderna it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Moderna for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between MRNA and BBI for more information.


Are you currently holding both Moderna and Brickell Biotech in your portfolio?
Please note if you are using this as a pair-trade strategy between Moderna and Brickell Biotech, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Sale by Bancel Stephane of 10000 shares of Moderna

Legal trades by Moderna insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Moderna insider trading alert for sale of common stock by Bancel Stephane, Chief Executive Officer, on 23rd of January 2022. This event was filed by Moderna Inc with SEC on 2022-01-14. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down a bit more

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Moderna revenue. Based on the latest financial disclosure, Moderna reported 7.02 B of revenue. This is 7.96% lower than that of the Healthcare sector and significantly higher than that of the Biotechnology industry. The revenue for all United States stocks is 25.6% higher than that of Moderna. As for Brickell Biotech we see revenue of 337 K, which is 99.95% lower than that of the Biotechnology

MRNA7.02 Billion90.43
Sector742.91 Million9.57

Our perspective of the current Moderna rise

Current jensen alpha is at -0.2. Moderna exhibits very low volatility with skewness of -0.22 and kurtosis of 4.84. However, we advise investors to further study Moderna technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Moderna's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Moderna's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Moderna Implied Volatility

Moderna's implied volatility exposes the market's sentiment of Moderna stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Moderna's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Moderna stock will not fluctuate a lot when Moderna's options are near their expiration.

Our Conclusion on Moderna

Whereas some other entities within the biotechnology industry are still a little expensive, even after the recent corrections, Moderna may offer a potential longer-term growth to investors. To sum up, as of the 28th of November 2021, our analysis shows that Moderna very regressive towards the market. The company is overvalued and projects close to average chance of distress for the next 2 years. Our current 90 days recommendation on the company is Strong Sell.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Moderna. Please refer to our Terms of Use for any information regarding our disclosure principles.

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