Moderna Soars to Record High as S&P 500 Index Addition Looms

Strategic Insights -

Moderna Inc. jumped to a fresh record after S&P Dow Jones Indices said it plans to add the company to its benchmark S&P 500 Index next week, replacing Alexion Pharmaceuticals Inc. Meanwhile, its market valuation has surpassed $100 billion, making it one of the largest biotech firms. The COVID-19 vaccine maker's stock has skyrocketed more than threefold over the past year, with its coronavirus inoculation receiving emergency use authorization in the U.S. in December.

Key Takeaways:

  • Moderna Inc. will replace Alexion Pharmaceuticals Inc. in the S&P 500 Index before the opening of trading on July 21.
  • The company's market valuation has surpassed $100 billion, making it one of the largest biotech firms.
  • Moderna's stock has skyrocketed more than threefold over the past 12 months, with its coronavirus inoculation receiving emergency use authorization in the U.S. in December.
  • Michael Yee, a Jefferies analyst, views Moderna as the "Tesla of biotech," comparing its innovative approach to messenger-RNA technology to Tesla's innovative electric cars.
  • The company is expected to boost its 2021 revenue guidance when it reports second-quarter results, likely in August.
  • Managers of index mutual funds and exchange-traded funds may sell shares of other stocks listed on the S&P 500 to add Moderna shares, potentially further propelling its gains this year.
  • Moderna has rallied over 170% so far this year, making it the top-performing stock on the Nasdaq 100 Index.
  • The company is expected to surpass L Brands Inc. as the best-performing stock on the S&P 500 when it joins the index next week.

Statistics:

  • 170%: Moderna's stock rally over the past year, making it the top-performing stock on the Nasdaq 100 Index.
  • 98%: L Brands Inc.'s stock surge, the current best-performing stock on the S&P 500.
  • $250: Michael Yee's raised share price target for Moderna, the highest on Wall Street.
  • $100 billion: Moderna's market valuation, making it one of the largest biotech firms.

Sources:

  • Bloomberg
  • S&P Dow Jones Indices
  • Jefferies analyst Michael Yee