What's Going On With Novavax Stock Today?

Novavax Inc NVAX shares are trading higher. The company on Thursday reached a settlement  for its 2021 vaccine advance purchase agreement with Gavi.

What To Know: Novavax said it reached a settlement with Gavi related to the 2021 advance purchase agreement for Novavax’s prototype COVID-19 vaccine. The agreement brings the pending arbitration related to the advance purchase agreement to a close.

“Novavax is pleased to have reached this agreement with Gavi as it gives us the ability to continue to work together toward our shared mission of ensuring equitable access to safe and effective vaccines,” said John Jacobs, president and CEO of Novavax.

“We look forward to a long-term partnership with Gavi to provide continued access to our protein-based non-mRNA COVID-19 vaccine.”

Under the terms of the agreement, Novavax has made an initial payment of $75 million to Gavi and has agreed to make deferred payments of $80 million annually through December 31, 2028. In addition to the annual obligation, Novavax will provide an additional vaccine credit of up to $225 million.

Novavax is set to report financial results for the fourth quarter before the market open on Feb. 28. The company is expected to report a loss of 50 cents per share and revenue of $321.66 million, per estimates from Benzinga Pro.

See Also: Moderna Likely To Report Q4 Loss; Here Are The Recent Forecast Changes From Wall Street’s Most Accurate Analysts

Is NVAX A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Novavax‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Novavax does not pay a dividend, but has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Novavax will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

NVAX Price Action: Novavax shares were up 27.76% at $5.08 at the time of publication, according to Benzinga Pro.

Photo: Marco Verch from Flickr.