Insiders At Moderna Sold US$3.3m In Stock, Alluding To Potential Weakness

Over the past year, many Moderna, Inc. (NASDAQ:MRNA) insiders sold a significant stake in the company which may have piqued investors' interest. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Moderna

Moderna Insider Transactions Over The Last Year

The CEO & Director, Stephane Bancel, made the biggest insider sale in the last 12 months. That single transaction was for US$2.3m worth of shares at a price of US$88.88 each. So what is clear is that an insider saw fit to sell at around the current price of US$82.44. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Moderna insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Moderna Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Moderna insiders own 9.6% of the company, currently worth about US$3.0b 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.

So What Do The Moderna Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Moderna shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Moderna insiders selling. Of course, the future is what matters most. So if you are interested in Moderna, you should check out this free report on analyst forecasts for the company.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.