BioNTech (BNTX) stock was under pressure on May 5 after the multinational announced plans to eliminate up to 1,860 roles as it continues to grapple with declining COVID-19 vaccine sales.
The selloff saw BNTX slip below its 50-day moving average (MA) on Tuesday, signaling downward momentum could sustain in the near term.
Including this pullback, BioNTech stock is down roughly 20% versus its year-to-date high.
What Layoffs Really Mean for BioNTech Stock
The layoffs represent about 25% of BioNTech’s workforce and are centered on its manufacturing operations that have become overcapacity now that the pandemic-era demand has evaporated.
According to the biotech firm, it will close or divest four of its facilities: three in Germany and one in Singapore.
Once fully executed, this restructuring will deliver about €500 million in recurring annual savings — funds the company plans on reallocating to research and development (R&D) and commercialization of cancer therapies.
This will help BioNTech transform into a diversified oncology-focused biopharmaceutical giant, its press release added.
Note that BNTX shares have a history of closing May, June, and July in the green — a seasonal trend that makes them attractive to buy on the dip.
Should You Load Up on BNTX Shares Today?
BioNTech’s first-quarter earnings underscored the urgency of the aforementioned transformation.
In Q1, the firm’s revenue crashed a worse-than-expected 35.4% to roughly €118 million, driven primarily by a significant decline in the demand for its COVID-19 vaccine.
BNTX’s adjusted per-share loss of €1.95 missed Street’s estimate of €1.27. On the plus side, however, the biotechnology company reaffirmed its full-year guidance for at least €2 billion in sales, broadly in line with the consensus.
Additionally, the board authorized up to $1 billion in stock buybacks for the next 12 months, which makes up for another strong reason to consider loading up on BioNTech shares at current levels.
BioNTech Remains Buy-Rated Among Wall Street Firms
Investors could also take heart in the fact that Wall Street analysts remain positive on BNTX stock for the remainder of 2026.
According to Barchart, the consensus rating on BioNTech sits at “Strong Buy,” with the mean price target of nearly $136 indicating potential upside of more than 40% from current levels.
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On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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