Please ensure Javascript is enabled for purposes of website accessibility

Why Moderna Stock Jumped 6% Today

By Keith Speights - Jun 22, 2021 at 4:40PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company announced another big European supply deal.

What happened

Shares of Moderna (MRNA -5.06%) jumped 6.3% higher as of the market close on Tuesday. The solid gain came after the company announced that the European Commission (EC) has agreed to buy an additional 150 million doses of its COVID-19 vaccine, bringing the total number of doses ordered by the EC to 460 million.

So what

Moderna announced an even bigger purchase last week with the U.S. government signing an agreement to buy 200 million additional doses of the company's COVID-19 vaccine. However, investors didn't respond enthusiastically to that deal, with the biotech stock slipping a little. So why did Moderna's shares take off on today's news?

European Union flag with a hand holding a syringe with a needle in front of the flag.

Image source: Getty Images.

There were some other factors going on last week that distracted investors somewhat from focusing on Moderna's good news. That's not the case this week.

Moderna stated that the European Commission could use the extra doses for primary vaccination of individuals, including kids. It could also use the doses for booster shots if required.

Now what

The key thing to watch with Moderna now is the progress of its COVID-19 vaccine candidate that specifically targets coronavirus variants. The European Commission will be able to purchase this revised vaccine pending regulatory authorization, with delivery potentially beginning in 2022. 

Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends Moderna Inc. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Moderna, Inc. Stock Quote
Moderna, Inc.
$150.00 (-5.06%) $-8.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.