Stock Traders Buy High Volume of Novavax Call Options (NASDAQ:NVAX)

Novavax, Inc. (NASDAQ:NVAX) was the recipient of unusually large options trading on Wednesday. Traders acquired 24,027 call options on the stock. This represents an increase of approximately 99% compared to the typical volume of 12,104 call options.

Novavax Trading Up 9.3%

NASDAQ:NVAX traded up $0.76 during trading hours on Wednesday, hitting $8.96. The stock had a trading volume of 7,413,191 shares, compared to its average volume of 5,683,077. The company has a debt-to-equity ratio of 5.93, a quick ratio of 2.24 and a current ratio of 2.27. The business’s 50 day moving average is $7.01 and its 200-day moving average is $7.67. Novavax has a one year low of $5.01 and a one year high of $10.64. The company has a market cap of $1.46 billion, a price-to-earnings ratio of 5.01 and a beta of 2.37.

Novavax (NASDAQ:NVAX) last announced its quarterly earnings data on Thursday, November 6th. The biopharmaceutical company reported ($1.25) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($1.08) by ($0.17). The firm had revenue of $70.45 million for the quarter, compared to analyst estimates of $55.63 million. Novavax had a negative return on equity of 217.02% and a net margin of 32.10%.The company’s quarterly revenue was down 16.7% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.76) earnings per share. Sell-side analysts anticipate that Novavax will post -1.46 EPS for the current fiscal year.

Key Stories Impacting Novavax

Here are the key news stories impacting Novavax this week:

• Positive Sentiment: Novavax signed a non‑exclusive Matrix‑M license with Pfizer that pays $30M upfront, up to $500M in development/sales milestones and high mid‑single‑digit royalties — immediate cash plus sizeable upside if programs succeed. Press Release
• Positive Sentiment: Expanding Matrix‑M licensing deals are being viewed as a proof point for a recurring licensing/royalty business model that could boost long‑term revenue and valuation upside; some sell‑side analysts have reiterated buy ratings on this thesis. TipRanks: Buy Rating Coverage
• Neutral Sentiment: Market commentators and valuation pieces are re‑running models to price the new deal into NVAX forecasts; some coverage focuses on how materially the Pfizer license changes discounted cash‑flow assumptions. Yahoo Finance: Valuation Assessment
• Neutral Sentiment: Major news outlets (Reuters) confirmed the licensing agreement, which helps cement the development/partnering narrative but does not guarantee milestones will be achieved. Reuters: Deal Coverage
• Negative Sentiment: Bank of America reiterated a Sell rating, arguing execution risk, long‑dated cash flows and weak COVID market prospects still undermine profitability — the license reduces but does not eliminate these risks. TipRanks: BofA Sell Note
• Negative Sentiment: Underlying fundamentals remain mixed: recent quarterly results showed revenue declines year‑over‑year and prior EPS misses; Matrix‑M royalties/milestones are contingent on Pfizer program success, so material cash flow depends on future events. Zacks: Deal + Financial Context

Analyst Ratings Changes

NVAX has been the subject of several analyst reports. B. Riley restated a “buy” rating and set a $16.00 price target (down previously from $18.00) on shares of Novavax in a research note on Monday, November 10th. Cantor Fitzgerald began coverage on Novavax in a research note on Friday, October 24th. They issued an “overweight” rating and a $18.00 target price on the stock. JPMorgan Chase & Co. reduced their price objective on shares of Novavax from $7.00 to $6.00 and set an “underweight” rating on the stock in a research note on Tuesday, November 18th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Novavax in a report on Monday, December 29th. Finally, Wall Street Zen cut Novavax from a “hold” rating to a “sell” rating in a report on Saturday, November 8th. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $11.25.

Institutional Trading of Novavax

Institutional investors have recently added to or reduced their stakes in the stock. Vanguard Personalized Indexing Management LLC increased its holdings in shares of Novavax by 11.0% in the 3rd quarter. Vanguard Personalized Indexing Management LLC now owns 12,755 shares of the biopharmaceutical company’s stock worth $111,000 after purchasing an additional 1,268 shares in the last quarter. Legal & General Group Plc increased its position in Novavax by 1.0% in the third quarter. Legal & General Group Plc now owns 155,743 shares of the biopharmaceutical company’s stock worth $1,350,000 after buying an additional 1,529 shares in the last quarter. The Manufacturers Life Insurance Company raised its stake in Novavax by 2.3% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 78,048 shares of the biopharmaceutical company’s stock worth $492,000 after acquiring an additional 1,718 shares during the period. SBI Securities Co. Ltd. lifted its stake in shares of Novavax by 5.5% during the 2nd quarter. SBI Securities Co. Ltd. now owns 34,095 shares of the biopharmaceutical company’s stock valued at $215,000 after buying an additional 1,766 shares in the last quarter. Finally, E Fund Management Co. Ltd. lifted its holdings in Novavax by 9.0% in the 2nd quarter. E Fund Management Co. Ltd. now owns 28,280 shares of the biopharmaceutical company’s stock worth $178,000 after purchasing an additional 2,326 shares in the last quarter. Hedge funds and other institutional investors own 53.04% of the company’s stock.

About Novavax

Novavax, Inc is a clinical-stage biotechnology company headquartered in Gaithersburg, Maryland, that specializes in the discovery, development and commercialization of next-generation vaccines to prevent serious infectious diseases. Founded in 1987, the company has built a platform based on recombinant nanoparticle technology and its proprietary Matrix-M™ adjuvant to enhance immune responses.

The company’s lead product is NVX-CoV2373, a protein-based vaccine designed to elicit a robust immune response against the SARS-CoV-2 virus.