Up 71%, Is Novavax Stock Still a Strong Buy?
Yesterday, next-generation vaccine maker Novavax (NASDAQ: NVAX) saw its shares jump by an astounding 71% on nearly 24 times the average daily volume. Investors bid up this small-cap biotech stock in response to the spread of a deadly respiratory virus (a type of coronavirus) from China to other parts of Asia, as well as to the United States.
Novavax's strong showing yesterday was fueled by the company's announcement that it had initiated the development of a vaccine specifically designed to combat the Wuhan version of the coronavirus in question. However, the vaccine maker also rolled out a prospectus supplement after the closing bell authorizing the issuance and sale of up to $100 million of common stock through the sales agent B. Riley FBR. Predictably, Novavax's shares dropped by 11.4% in after-hours trading Tuesday evening on the heels of this sizable capital raise.
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Source Fool.com
