Why Novavax Shares Vaulted Higher Today
Shares of Novavax (NASDAQ: NVAX) were vaulting 9.3% higher as of 3:08 p.m. EDT on Thursday. At first glance, you might think this noteworthy gain stemmed from Novavax's regulatory disclosure after the market closed on Wednesday that the U.K. government agreed to buy 60 million doses of the biotech's COVID-19 vaccine candidate. However, Novavax stock actually fell in the first few hours of trading Thursday morning and only began to rise shortly before 11 a.m. EDT.
The overall stock market rebounded nicely today after big losses earlier this week. This momentum likely helped buoy Novavax. Again though, the major market indexes were climbing in the first few hours of trading while shares of Novavax were sliding.
Perhaps the best explanation behind the solid gain for the biotech stock today is simply that some investors saw an opportunity to buy Novavax at a discount compared to where its shares have traded in recent weeks. This probably created enough upward pressure on a day when trading volume for Novavax was well below its average volume. It's likely that these investors were spurred to some extent by the company's big U.K. deal.
Source Fool.com
