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Concept of NVAX stock vaccine against COVID-19. Glass medical vials with liquid. Ampoules with coronavirus vaccine on a medical glass table

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Novavax (NASDAQ:NVAX) stock is down more than 25% today after the biotechnology company reported fourth-quarter earnings and raised doubts about its ability to continue as a “going concern.”

The company noted the following in the report:

“While our current cash flow forecast for the one-year going concern look forward period estimates that we have sufficient capital available to fund operations, this forecast is subject to significant uncertainty, including as it relates to 2023 revenue, funding from the U.S. government, and pending arbitration. Given these uncertainties, substantial doubt exists regarding our ability to continue as a going concern through one year from the date that these financial statements are issued.”

During Q4, sales tallied in at $357 million, trailing below the analyst estimate for $383 million. Furthermore, Novavax reported an EPS loss of $2.28, equivalent to a net loss of $182 million. The company’s net loss was $846 million a year ago.

As of Dec. 31, Novavax had $1.3 billion in cash, cash equivalents and restricted cash, down year-over-year from $1.5 billion. Selling, general and administrative expenses totaled $162 million for Q4, while research and development expenses totaled $258 million.

In the report, Novavax disclosed that its goals for 2023 are to deliver an updated Covid-19 vaccine and to reduce expenses.

5 Investors Still Betting Big on NVAX Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q4, 237 13F filers disclosed a stake in NVAX, a decline of three filers when compared to the prior quarter. Of the 237 filers, none own NVAX stock in their top 10 positions. Meanwhile, the institutional put/call ratio sits at 0.95, down from 1.09. That’s equivalent to 10.69 million puts and 11.28 million calls, implying a somewhat neutral options stance. With that in mind, let’s take a look at the five largest stockholders of Novavax:

  • Vanguard: 8.84 million shares. The exchange-traded fund (ETF) provider acquired 1.34 million shares during Q4.
  • State Street (NYSE:STT): 5.90 million shares. State Street acquired 2.25 million shares during Q4.
  • BlackRock (NYSE:BLK): 4.78 million shares. BlackRock acquired 461,747 shares during Q4.
  • Renaissance Technologies: 2.82 million shares. Renaissance acquired 1.94 million shares during Q4.
  • VR Adviser: 1.87 million shares. VR acquired its entire stake during Q4.
  • On the date of publication, Eddie Pan did not hold (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 InvestorPlace.com Publishing Guidelines.

    Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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