Insiders of This Company Not ‘Buying’ its Own Hype Surrounding a COVID-19 Vaccine

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  • As companies continue to see wild swings day-to-day regarding the potential development of a COVID-19 test, treatment or vaccine, it makes you wonder which executives are most anxious to sell shares into strength. While this doesn’t necessarily mean that they don’t believe that they will produce an effective product, it does reflect somewhat on their optimism.

    Moderna, Inc. (MRNA) is a Massachusetts-based on Biotech company that develops vaccines and therapies using messenger RNA treatments. Over the past month, the price has swung wildly from $20 to as much as $35. Currently it’s on an upswing over the past two days. Many are speculating as to the challenges for the company and opportunity, but what are the insiders of the company doing right now?

    Since March 2, 2020, 12 insiders have made trades totaling 138,489 shares. Of those transactions, all of them have been sell orders and the breadth of representation is pretty significant. The positions of these insiders represent the CEO, Chief Medical Officer, CFO, CAO and president. Several of these insiders sold a substantial amount or completely liquidated their holdings. Many of the trades were also executed for around $25 or less.

    While this shouldn’t necessarily scare you away from this company, it does call into question the value that management sees when the price elevates above $20 to $25. This presents an opportunity to acquire shares on the hype near support at $20 to $22.50 and liquidate into strength at close to $30 to $35.

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