Shareholders may not want to ignore the US$4.3m worth sales made by Moderna, Inc. (NASDAQ:MRNA) insiders this past year
While Moderna, Inc. (NASDAQ:MRNA) shareholders have had a good week with the stock up 8.5%, they shouldn't let their guards down. In spite of the relatively cheap prices, insiders made the decision to sell US$4.3m worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Moderna
The Last 12 Months Of Insider Transactions At Moderna
Over the last year, we can see that the biggest insider sale was by the CEO & Director, Stephane Bancel, for US$1.6m worth of shares, at about US$160 per share. So we know that an insider sold shares at around the present share price of US$150. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Insiders in Moderna didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Moderna insiders own 9.6% of the company, currently worth about US$5.5b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Moderna Tell Us?
It doesn't really mean much that no insider has traded Moderna shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Moderna insider transactions don't fill us with confidence. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Moderna is showing 3 warning signs in our investment analysis, and 2 of those shouldn't be ignored...
But note: Moderna may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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