Let’s not be cunning if we say that the American biotechnology company Moderna is doing well in the era of the raging coronavirus infection. After its shares are included in the S&P 500 index calculation base, the situation will be even better. Let’s discuss what happened, what consequences to expect and what our analyst Maxim Artyomov thinks about it all.
Moderna Stocks in the S&P 500
On July 15, it became known that the securities of Moderna, which the whole world learned about thanks to its anti-toxic vaccine, will be included in the S&P 500 stock index. There is no information yet about what percentage of the company will receive.
Already on July 21, it will replace another representative of the healthcare sector – Alexion Pharmaceuticals in the list of companies whose shares are taken into account when calculating the index. This pharmaceutical company is acquired by the British AstraZeneca, already known to many.
What’s next for Moderna?
To get into the basket of the other 504 selected public companies, which can boast the largest capitalization, from among the public companies listed on the US stock exchanges, has always been considered a positive driver for growth.
Analysts are confident that now investment funds, for which the S&P 500 index is one of the main benchmarks, are stepping up in the acquisition of shares of the biotech firm Moderna. So much for an additional flow of funds.
Moderna shares up 10%
On July 15, when the media reported its inclusion in the S&P 500, Moderna (NASDAQ: MRNA) jumped 5.28% at the close to $ 259.68. However, the very next day the quotes showed a more impressive growth – by 10.3%, to $ 286.43.
It is important to note that the shares of this company during 2021 added 174.2% in price, starting at $ 104.47 per share.
Technical analysis of Moderna shares by Maxim Artyomov
“On the daily chart, the company’s shares continue their upward trend. At the last trading session, the quotes made a sharp rise on the news background. In the future, the price may make a correction to the broken level of $ 260.
After the support test, we can expect continued growth in quotations, the target will be $ 320. An additional signal in favor of growth is the 200-day moving average, which is also showing an upward trend. “
Summing up the result
On July 21, Moderna shares will be included in the base of the S&P 500 stock index. This news triggered a rise in the price of securities of the American biotech company by more than 10%. Experts predict further growth in the share price of this representative of the pharmaceutical sector.
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