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NEW YORK – On a day of mixed fortunes for the stock market, Novavax (NASDAQ Inc. experienced a slowdown and its shares fell 2.78% to close at $5.59 on Tuesday. The drop halted the biotechnology company's two-day rise, leaving the stock significantly below its annual high of $18.55 reached on December 13.
The broader market saw a mixed performance, with a gradual advance of 0.31% to settle at 14,229.91, while it experienced a modest pullback, falling 0.22% to close at 36,124.56.
Novavax's move contrasted with that of some of its pharmaceutical peers; Johnson & Johnson saw a slight decline of 0.21%. Pfizer (NYSE:) shares fell 0.65% and Merck remained on the positive side with a gain of 1.11%.
Novavax's trading volume was notably high, with 8.1 million shares changing hands, surpassing its recent average trading volume of 7.1 million shares.
InvestingPro Insights
Novavax Inc. (NVAX) continues to go through a challenging period and recent data from InvestingPro sheds light on the company's financial health and market performance. With a market capitalization of $664.04 million, Novavax trades at a low earnings valuation multiple, which could appeal to value investors looking for opportunities. However, the company's gross profit margin stands at a worrying -14.16% for the trailing twelve months to Q3 2023, indicating difficulties in maintaining profitability.
InvestingPro advice suggests that Novavax has more cash than debt on its balance sheet, which could provide some financial flexibility. However, analysts are not optimistic about the company's profitability in the short term and predict a decline in sales this year. These factors contribute to the stock's volatility, as the price has fallen significantly over the past three months and is currently trading near its 52-week low.
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