Institutional investors are betting on Novavax. How attractive is the stock?

on Oct 12, 2022
Updated: Jun 21, 2024
  • Institutional investors' total holding of NVAX stock has increased from Q1 to Q2.
  • NVAX is buoyed by the latest vaccine developments, with 2.80% gains in five days.
  • The stock remains largely bearish, having lost 86% YTD.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Large holdings of stocks by institutional investors signal potential big price moves. That’s because large investors can infuse the necessary liquidity to fuel huge market volatility. Novavax, Inc. (NASDAQ:NVAX) is one stock that has seen considerable institutional activity.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

According to the latest filings, key institutional holding on NVAX has increased. During the second quarter, firms filed 33.3 million shareholdings in NVAX. The stake was increased from 32.86 million shares in the first quarter.

Among the companies that added more shares of NVAX in the second quarter are Vanguard and Morgan Stanley. The companies acquired 7.35 million and 1.28 million shares, respectively. State Street and Coatue Management added 2.96 million and 1.24 million shares, respectively.

BlackRock was, however, a seller, relinquishing 4.25 million shares. Besides, the total number of funds reporting holding NVAX from the first to the second quarter dropped by 55. 

What are the latest developments and price reactions?

Copy link to section

Novavax has added 2.80% in the last five days due to positive stock market news. Recently, the company’s Covid-19 vaccine met the endpoints for the Phase 3 PREVENT-19 trial and Study 307 tests. 

There is also enthusiasm around the sharing of the Novavax vaccine portfolio during the World Vaccine Congress. The October 11 to 14 event could potentially open opportunities for NVAX in global vaccine marketing. 

NVAX has been reacting to the positive sentiment but should you buy it now?

Source – TradingView

Technically, NVAX does not excite as it remains on a clear downtrend. The stock is coming from an oversold price of $16. However, the RSI remains below the midpoint, meaning that there is still a significant number of sellers. The current price of $20 is the lowest since May 2020, underlining high selling pressure.

Should you buy NVAX

Copy link to section

NVAX is mixed despite an increase in holding by institutional investors for the biotech firm. Key developments provide a catalyst for a potential price increase. However, the stock could remain largely bearish before any sustained surge.

USA Biotech North America Stock Market