Vaxart Traders Should Not Dismiss the Vaccine Maker’s Momentum

Based in California, Vaxart (NASDAQ:VXRT) is a biotech company known for making vaccines. But there’s an unusual, differentiating angle here: its vaccines are orally administered. This is certainly interesting, yet VXRT stock has still been drifting sideways for some time.

The Vaxart (VXRT) logo is surrounded by face masks, syringes and pills.
Source: Ascannio /

Vaxart did apparently garner attention from the short-squeeze crowd earlier this year. But while meme traders might return for another round, that’s not a guarantee by any means.

So, instead of hoping that Reddit traders target VXRT stock for a squeeze, investors should conduct their due diligence with this name. Fortunately, though, the data seems to indicate that Vaxart is in a solid financial position. Plus, it’s making progress in the battle against Covid-19.

VXRT Stock at a Glance

An amazing thing happened this year back in late January and early February. During that time, VXRT stock catapulted from around $9 to a 52-week high of $24.90.

Social media investors on sites like Reddit sometimes like to pump up low-priced stocks. So, with the phenomenon in full effect in early 2021, it’s entirely possible that retail traders had targeted Vaxart for a squeeze back then.

But that rally wasn’t meant to last. All of those gains were given up within a few weeks.

Vaxart saw another quick pump in April, when the stock doubled from around $5 to over $10 in a matter of days. Since then, there have been several months of sideways drift. Most recently, it landed at $8 and change on Sept. 24.

Of course, it’s interesting to see a stock’s price action change so quickly from rollercoaster to range-bound. But patience is the key here. VXRT investors should remember that, when it comes to low-priced pharmaceutical stocks, things can go from dull to dramatic at any given moment.

Giving Boosters a Boost

So, what makes VXRT and interesting play? Although other vaccine makers get all of the attention, we should not ignore the progress that Vaxart has made.

Basically, the company is advancing an oral tablet Covid-19 vaccine candidate known as VXA-CoV2-1. And, as its investor deck notes, the pills can be stored at room temperature while requiring no needles whatsoever.

That, in itself, could be considered progress on the path out of the pandemic. However, there’s even more to the story.

For instance, in clinical trials, this same oral tablet vaccine platform successfully boosted immune responses “in subjects previously vaccinated with a Vaxart oral vaccine more than a year earlier.” This is encouraging news in a time when booster shots are the health topic of the moment. CEO Andrei Floroiu had the following to say:

“These results are very important because they support our belief that our oral tablet vaccines have the potential to be used repeatedly for indications that may require an annual boost, such as flu, COVID-19, or norovirus.”

In addition, Vaxart also recently announced that the U.S. Food and Drug Administration (FDA) cleared its Investigational New Drug (IND) application for an S-only oral tablet SARS-CoV-2 vaccine candidate. (This refers to the S protein, a viral spike protein which is a major target of antibodies that could neutralize the virus.)

On the Fiscal Front

Moving away from the scientific side of the equation, though, potential investors should also keep tabs on how Vaxart is doing financially.

Notably, Vaxart raised $36.2 million in net proceeds “from its $250 million at-the-market facility” during the second quarter of 2021. For one, that should bolster the company’s financial standing.

Furthermore, VXRT stock investors will be glad to learn that the compay ended Q2 with cash, cash equivalents and available-for-sale debt securities totaling $198.9 million. That’s an improvement over the $177.3 million it had as of Mar. 31.

Of course, don’t get the wrong impression from all of this data. Vaxart did sustain a net earnings loss in Q2, so that’s something investors should be aware of.

Still, the top-line data appears to be moving in the right direction. Hopefully, Vaxart will be able to translate this into a positive earnings position in the near future.

The Takeaway

Clearly, Vaxart is working diligently to advance its unique, orally administered Covid-19 vaccine candidate. Plus, the company is in a solid (albeit not perfect) financial position.

VXRT stock isn’t moving as quickly as some traders would like it to. An attitude of patience, however, should reward Vaxart’s loyal shareholders in the long run.

All told, this stock earns a “B” rating in Portfolio Grader and could be a viable way to play vaccines.

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On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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