Stephanie Bancel, CEO of Moderna (MRNA), recently bought 160,314 shares. The buy increased her stake by 1%, and came to a total cost of $5 million.
A company director also bought $1 million of shares on the same day, picking up 31,620 shares an increasing his position by 7%. These mark the first insider buys over the past two years, reversing a trend of steady sales by executives and directors alike.
Overall, Moderna insiders own 10.2% of shares.
The biotech giant has shed 64% of its value over the past year as investors have focused on other innovation stories, notably AI.
The company’s operations have also soured as demand for Covid vaccines have petered out. Revenues fell by a massive 65% in the past year and earnings growth has been negative.
However, even with that decline, Moderna trades at 7 times forward earnings estimates and healthcare stocks are starting to show signs of life.
Action to take: Moderna shares are still in a downtrend. Until the company can find a new product to reignite earnings growth, shares will likely be under pressure. Interested investors should hold off for now, or look for more diversified and earnings-stable plays in the biotech space.
For traders, with shares still trending lower, a put option trade like the May $30 puts may deliver double-digit returns. Those options last traded for about $2.80.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.