Novavax is an American leading developer of recombinant vaccines that is making headlines lately with its vaccine against the coronavirus disease. According to recent reports, Novavax is expected to start its late-large trial in the coming weeks, which makes this company one of the leading players in the Covid-19 vaccine race.
This led to a huge increase in the Novavax stock price, more precisely a year-to-date return of around 3100% at the time of writing! The Novavax stock started this year at a price of $4.49 per share and is currently trading at $127 per share after falling from the 5-years high of $178 in August.
So, it is not a surprise that Novavax shares are among the most popular investment in the market right now. If you are thinking of buying shares of Novavax, this guide will help you get answers to some of your questions. We’ll help you find the best UK stockbroker that offers shares of Novavax, analyze the Novavax share price performances, and show you how to buy Novavax shares.
Novavax is an American company that is listed on the Nasdaq stock exchange, meaning you’ll have to find a UK brokerage firm that links you to the US stock markets. Fortunately for UK investors, there are many brokers that offer US shares including Novavax, however, you’ll want to find a broker that is right for you. You should consider the pricing structure offered by the broker as well the trading features and platforms you’ll get access to.
To help you find the right direction, below we suggest two highly recommended UK stockbrokers that provide access to Novavax shares.
eToro is our first pick for buying US shares in the UK, and for several reasons. The broker that was founded in 2006 has grown to become the largest social trading platform in the world with more than 12 million registered users on its platform and thousands of assets to trade on. As eToro offers share trading from 17 different stock exchanges including the US markets, investors can also buy and sell shares of Novavax.
eToro stands out from other platforms in the market by offering zero-commission share trading. Unlike the majority of share trading platforms in the UK, buying shares on eToro is completely commission-free – there are no account management fees nor fixed trading fees when buying and selling shares. Instead, you’ll only have to pay and sell spread. In terms of leverage at eToro, shares can be traded with a leverage ratio of 5:1.
eToro also gives investors access to other markets including FX currency pairs, ETFs, indices, commodities, and cryptocurrencies. In addition, eToro creates the CopyPortfolios that bundle together different stocks based on a specified sector, region, or industry. As such, you’ll be able to invest in the following built-in portfolios: Crypto, Gaming, Cannabis, Autonomous Cars, Renewable Energy, ChinaTech, Drone Tech, and many more.
The very best thing about eToro is its social trading features. The platform’s interface is very similar to any other social network you are already familiar with, and therefore, it is extremely easy to navigate and trade on this platform. This broker lets you connect with other traders and share ideas and trading strategies. Plus, if you are a newbie in the industry, you can use the CopyTrade tool that enables you to automatically copy the trades of other users on the platform.
In terms of the safety of funds, eToro is regulated by the Financial Conduct Authority in the UK and ensures investors’ funds are held in segregated accounts and are protected by the FSCS with up to £85,000.
67% of retail investor accounts lose money when trading CFDs with this provider.
Another excellent platform to buy and sell US shares is Fineco Bank. This regulated broker offers a huge variety of markets and products – including nearly all the stock listed on the US exchanges. Though Fineco offers CFDs, it is also offers users a share trading platform that connects traders directly to the exchange. As such, trading is not commission-free, and US share deals cost $3.95 per trade.
Fineco Bank is most suited for professional traders and those who are looking for fast order execution and an advanced charting package. This is because it offers one of the most professional trading platforms in the market, the PowerDesk. The power desk is an impressive trading workstation with an effective stock screener, dozens of built-in technical indicators, a market news feed, and ultra-fast market order execution.
Overall, Fineco Bank offers a decent range of markets and products that include Forex currency pairs, indices, stocks (CFDs and outright), ETFs, options, bonds, and futures. It also offers an excellent education center that includes weekly webinars, trading events and courses, an on-demand video library, and one one one sessions with one of the brokerage’s specialists.
Novavax stock has been a favorite stock among investors this year, largely due to its Covid-19 vaccine. According to Novavax Board Member Margaret McGlynn, the company will have the capacity for ‘two billion doses’ of a coronavirus vaccine globally. This was the major catalyst for the Novavax stock run of 3100% return from the start of the year.
However, before you buy shares of Novavax it is crucial to make in-depth research of the company’s current situation and whether the stock can keep rising from current levels.
What is Novavax?
Novavax is a biotechnology company that specializes in the development, and commercialization of vaccines to prevent infectious diseases. Founded in 1987, Novavax is headquartered in Gaithersburg, Maryland, and has additional facilities in Uppsala, Sweden, and Jevany, Czech Republic. For many years, Novavax has relied on grants to finance its operation including an $89mn grant from the Bill and Melinda Gates Foundation in 2016. As of December 2020, Novavax is at the forefront of developing an effective Covid-19 vaccine, alongside Pfizer and Moderna.
Novavax went public on December 5, 1995, just eight years following the company’s foundation. In the first few years, Novavax shares were trading stable in a range of $80-$100, peaking twice in 2001 and 2015 before falling due to the failure of Novavax to achieve positive results of the RSV vaccine in older adults. Immediately following the RSV failure, Novavax had to lay off 30% of its employees to save cost. In the same year, the company’s shares dropped more than 85%, falling from $155 in September 2016 to around $27 in December 2016.
Since 2016, Novavax was facing a dark period. In 2019, clinical testing of ResVax failed for a second time and the biotech company had to announce a reverse stock split to avoid delisting from the Nasdaq stock exchange. Ultimately, it reached a bottom of $4.01 in December 2019.
Ironically, the coronavirus pandemic came in time to save Novavax. Since the beginning of the year, Novavax’s share price soared from the bottom of $3.93 per share to a 5-year high of $178 in August. Meanwhile, the Novavax stock dropped nearly 28% due to disappointing earnings results and the early release of the Covid-19 vaccine from Pfizer and Moderna.
At the current share price, Novavax has a market cap of slightly above $7.3bn. It has reported EPS of -$3.21 per share, for the third quarter of 2020, and a loss of -$4.39 per share for the nine months ended September 30, 2020. As Novavax has negative earnings, its PE ratio currently stands at around -23. The expected price-per-earnings (PE) growth rate for 2021 stands at 421%.
As Novavax is still in its growth stage, it does not yet pay dividends and has never paid dividends since its creation.
Currently, Novavax is in a race against time, and it is still waiting to get its first-ever regulatory approval for one of the two vaccines it is currently developing.
With that in mind, Novavax stock has been the big winner of 2020 so far, with a YTD return of 3100% and worldwide recognition as one of the leading biotechnology companies operating in the industry. In terms of share price performance, Novavax ranks among the best stocks this year.
So, let’s a closer look at some of the reasons why analysts believe Novavax is still a strong buy right now.
Novavax is a Leading Candidate for Covid-19 Vaccine
Recently, Novavax’s vaccine candidate entered phase 3 trials of its unique and highly effective NVX-CoV2373. Basically, Novavax is the only company in the market that develops nanoparticle vaccines. The nanoparticles are what make Novavax’s Covid-19 vaccine so unique. It uses a custom-made spike protein and adds an adjuvant or a chemical that could weaken the virus in a more efficient way.
This technology has convinced many governments worldwide to bet on the Novavax vaccine. Canada, the UK, New Zealand, Australia, and the Philippines have already secured Covid-19 vaccines by Novavax. Overall, Novavax has already agreed to supply more than 286 million doses to various countries once its vaccine is approved.
Though the Novavax vaccine might arrive later than other candidates, it is still considered by many as the most efficient coronavirus vaccine in the market right now.
The Nano-Flu Vaccine
Besides its covid-19 vaccine, Novavax develops the NanoFlu vaccine that has achieved all primary endpoints in phase 3 clinical trial in March 2020. As a result, Novavax plans to submit the NanoFlu vaccine for regulatory approval from the U.S. Food and Drug Administration (FDA). If it gets regulatory approval, the Novavax share price could get another boost from the global need for a flu vaccine. This is expected to happen in 2022.
Strong Financial Stability
Novavax is a small company in terms of market capitalisation and revenues. But 2020 was a year of change for the American biotech company. In the third of 2020, the company has reported a $571mn in cash and revenue of $157mn compared to just $2.5mn in the same period in 2019. According to Novavax, this increase in revenues was due to increased development activities relating to the NVX-CoV2373 vaccine. More importantly, Novavax has been awarded more than $2bn globally for the development of its Covid-19 vaccine, with $1.6bn from the U.S. government.
Step 3: Open an Account and Deposit Funds
If following our Novavax share price analysis you are still interested in buying its shares, we are now going to show the full buying process via eToro’s trading platform.
To start, you’ll have to open a new trading account by visiting eToro’s site and complete the registration process. To do that, you need to submit a username, password, email, and then fill in personal details like your name, address, financial status, and trading background.
As eToro is regulated by the FCA, you’ll be also required to verify your identity before you are allowed to trade. As such, you need to upload a copy of your driver’s license or passport along with a recent utility bill.
Next, you’ll be asked to add funds to your account. In the UK, eToro has a minimum deposit requirement of around £140, which can be done by debit or credit card, PayPal, Skrill, Neteller, and UK bank transfer.
Once you have completed the registration process and funded your account, you are ready to buy shares of Novavax. On the trading dashboard, type in Novavax and click on the ‘Trade’ button on the first result that pops up in the drop-down menu.
You’ll then see an order form where you can decide the amount you want to invest in Novavax. When you are ready, click on the ‘Place Order’ button.
Another important step to take (at least for beginners) is to set stop-loss and take profit orders. Once you have made a purchase, navigate to your Portfolio on the left side menu, and insert the orders to mitigate your risk.
All things considered, Novavax is still a small company, and obviously there’s some risk in buying its shares right now. Novavax’s shares are likely to continue to be volatile in the next months, particularly with the new Covid-19 mutation that’s spreading rapidly in the UK and other areas across the world.
On the other hand, Novavax is currently the only company in the market with late-stage trials for both Covid-19 and flu vaccine candidates. Even in the case that Novavax is not going to be among the first biotech companies to release a Covid-19 vaccine (like Pfizer and Moderna), it could be a dominant player in the post-pandemic era. This means that Novavax has a potential of billions of dollars in sales for the next years.
While it is currently difficult to predict the correct entry price to invest in Novavax, it appears to be a great ‘wait and see’ long term investment opportunity.
In summary, buying a stock after a spectacular return might be a risky investment. This is the case right now with Novavax. With that in mind, the flow of good news from Novavax makes this investment a value opportunity for long-term investors. Novavax has been awarded $1.6 billion by the federal government to complete its late-stage clinical development, and it is estimated that Novavax will be able to produce the capacity for a Covid-19 vaccine of more than Pfizer and Moderna – 2 billion doses every year by mid-2021. Additionally, the huge potential of the NanoFlu vaccine is another reason for the Novavax stock to continue its bullish trend in the future.
If you ready to buy Novavax shares right now, simply click the link below to get started!
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