Insider Selling

Moderna Inc stock could rebound but Insiders are filing Form 144s

The image's background depicts a doctor filling the syringe with injection, with the blog introduction mentioning the Form 144s from A-level Insiders on top.

Founded in 2010 in the state of Massachusetts, America, Moderna Inc (MRNA: US) is a pharmaceutical company that came into public prominence during the 2020 pandemic. The biotech company, formerly known as Moderna Therapeutics Inc, was one of the first to develop an effective vaccine against COVID-19, which was later recommended by the US Centers for Disease Control and Prevention. 

The company has a current M Cap of $55.8 billion while MRNA stock has been underperforming in the markets. Elsewhere, three of Moderna’s top insiders filed Form 144s in September this year.

Form 144s from A-level Insiders

On September 7, two insiders at Moderna filed Form 144s for millions worth of shares:

  • Filed via Fidelity Brokerage Services LLC, Moderna’s Founding CEO Stephane Bancel filed an intention to sell 40,000 shares worth an estimated $5.4 million

  • Noubar Boghos Afeyan, the company’s Co-founder and Chairman of the board, filed his form via the broker Morgan Stanley Smith Barney LLC. This form was to sell 10,000 shares, valued at $1.35 million

Both CEO Bancel and Chairman Afeyan sold the shares in three and one transactions respectively on the same day. Later, CEO Bancel filed a new form the following day, on September 8, in addition to another insider. Both forms were filed via Fidelity Brokerage Services LLC.:

  • CEO Bancel intends to sell an additional 40,000 shares, valued at $5.65 million 

  • Chief Level Officer,  Shannon Thyme Klinger, also filed an intention to sell 478 shares which at the time are worth $67,531.

Prior to his form filing, CEO Bancel had made amendments to his personal aim to exercise Moderna’s stock options on May 24, 2022. The new plan states that Bancel will exercise 40,000 options of MRNA on the Wednesday and Thursday of each week from May 25, 2022 onwards. This will be until all the options have been exercised; these were previously granted to acquire 4,587,155 shares for a share price of $0.99 back in 2013.

Stock and company's progress

Positive news reveals that the Health, Labour, and welfare ministry in Japan has approved a change for Moderna’s new drug: the COVID-19 booster, mRNA-1273.214 which will particularly target the Omicron variant. The same booster was also authorized for use on September 1 by Health Canada. 

In terms of earnings, Moderna’s net revenue for its second quarter of 2022 had reached $4.7 billion, a number 9.07% higher year on year. In comparison, the cost of sales amounted to $1.4 billion, which can be attributed to the sales of the COVID-19 vaccine. Also, the company disclosed its $3 billion share repurchase program. 

In comparison to its rise back in 2020, MRNA stock has had a bearish year so far. The stock price is down by almost 40.30% year-to-date. However, most analysts are eyeing a turnaround on the horizon for the pharma stock. Currently valued at $140.32 as of September 12, analysts from Morgan Stanley and Barclays predict that the price could soar anywhere from $197.00 to $404.00.

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