Moderna , Inc. (NASDAQ:MRNA) President Stephen Hoge has recently sold a portion of his company shares, according to the latest SEC filings. The transactions, which occurred on September 3, 2024, involved the sale of 318 shares at a price of $76.989 each, totaling over $24,482.
The sale was part of a "sell to cover" transaction mandated by the company's equity incentive plans to satisfy tax withholding obligations upon the vesting of restricted stock units (RSUs). This type of sale is required by the company's policy and does not represent discretionary trading by the executive.
In addition to the sale, the filings also disclosed that on August 30, 2024, Hoge had acquired 652 shares of Moderna common stock, which converted from restricted stock units on a one-for-one basis. These transactions did not involve any monetary exchange as they were related to the vesting schedule of the RSUs granted to Hoge.
Following these transactions, Hoge still holds a significant number of Moderna shares, with 1,443,002 shares held directly and additional shares held indirectly through a trust and Valhalla, LLC. The trust, which benefits Hoge's spouse and children, holds 151,933 shares, while Valhalla, LLC holds 4,116 shares. It's worth noting that Hoge disclaims beneficial ownership of the shares held by the trust, except to the extent of his pecuniary interest.
These latest transactions provide investors with insight into the financial moves of one of Moderna's top executives and reflect a common practice of managing stock-based compensation. Investors often monitor such filings to gauge insider sentiment and potential future performance of the company's stock.
In other recent news, Moderna's updated COVID-19 vaccine, Spikevax, has received approval from the UK's Medicines and Healthcare products Regulatory Agency, targeting the JN.1 variant. This move follows recommendations from the World Health Organization's Technical Advisory Group on COVID-19 Vaccine Composition. In addition to public distribution through the National Health Service, the vaccine will be available for private purchase, marking a first for the UK.
Other recent developments include approvals for Moderna's Spikevax vaccine from the Taiwan Food & Drug Administration, the Japanese Ministry of Health, Labour and Welfare, and the US FDA. Analysts from Brookline Capital Markets maintained a Buy rating on Moderna, projecting the COVID-19 vaccines to generate $2.7 billion in sales for Moderna in 2024.
However, HSBC (LON:HSBA) upgraded Moderna's stock from Reduce to Hold due to an unexpected dip in COVID-19 vaccine revenue. Moderna's mRESVIA received FDA approval, but it may not perform as well compared to competing products, leading to a revision of its 2024 net product sales outlook to between $3.0 billion and $3.5 billion.
Piper Sandler maintained its Overweight rating for Moderna, projecting sales for SpikeVax to reach $2.85 billion. Moderna also reported promising Phase III data for its mRNA-1010 seasonal flu vaccine and mRNA-1283 next-generation COVID vaccine. These are the recent developments for Moderna.
InvestingPro Insights
Amid the recent transactions by Moderna's President Stephen Hoge, investors are keeping a close eye on the company's financial health and stock performance. According to InvestingPro data, Moderna's market capitalization stands at $27.82 billion, reflecting the company's valuation in the biotechnology market. Despite facing challenges, Moderna holds a significant cash position, which, as per an InvestingPro Tip, exceeds its debt, providing some financial stability.
However, the company's financial metrics indicate some areas of concern. Moderna's revenue for the last twelve months as of Q2 2024 has seen a sharp decline of 52.6%, and its gross profit margin is deeply negative at -62.99%. These figures suggest that the company is facing significant headwinds, which is corroborated by a second InvestingPro Tip indicating that analysts are anticipating a sales decline in the current year.
The stock's price has also experienced volatility, with a 1-month total return of -15.75% and a 3-month total return of -49.81%. This could be reflective of the broader market's sentiment towards the biotech sector or specific challenges faced by the company. Moderna's P/E ratio stands at -4.71, further highlighting the market's skepticism about its near-term earnings potential.
For investors looking to delve deeper into Moderna's stock prospects, there are additional InvestingPro Tips available, including insights into earnings revisions and profitability expectations for the year. In total, there are 11 more tips listed on InvestingPro, which can be accessed for a comprehensive analysis of Moderna's financial outlook and stock performance.
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