Moderna , Inc. (NASDAQ:MRNA) has reported that its Chief Legal Officer, Shannon Thyme Klinger, sold a total of 122 shares of company stock at an average price of $140.72 per share, according to a recent filing with the Securities and Exchange Commission. The total value of the sold shares amounted to $17,167. This transaction took place on June 3, 2024.
The sale was part of a "sell to cover" transaction mandated by Moderna's equity incentive plans to satisfy tax withholding obligations upon the vesting of Restricted Stock Units (RSUs). These sales are required by the company's policy and are not considered discretionary by the reporting person.
In addition to the sales, the filing also disclosed the acquisition of common stock through the conversion of RSUs on May 31, 2024. However, no monetary transaction took place during this conversion, as RSUs convert into common stock on a one-for-one basis without any cost to the holder. This means that the Chief Legal Officer did not make any purchase in the open market; instead, previously awarded RSUs were converted into 232 shares of common stock.
Following these transactions, Klinger's direct ownership in Moderna stocks stands at 10,878 shares of common stock and 1,629 derivative securities in the form of RSUs. The RSUs are set to vest in twelve equal quarterly installments after an initial 25% vested on March 1, 2023.
Investors often monitor the buying and selling activities of company insiders as it can provide insights into the company's financial health and future prospects. Insider transactions are required to be reported to the SEC and are publicly disclosed to ensure transparency and fair dealing in the market.
InvestingPro Insights
As Moderna's insiders navigate their equity incentives, the company's financial health remains a focal point for investors. With a market capitalization of $55.65 billion, Moderna's financial metrics paint a complex picture. Notably, the company's Price/Earnings (P/E) ratio stands at -9.26, reflecting market expectations of future earnings potential despite recent losses. The adjusted P/E ratio for the last twelve months as of Q1 2024 is slightly lower at -9.41, mirroring the challenging environment the company faces.
InvestingPro Tips highlight that Moderna holds more cash than debt on its balance sheet, which is a positive sign of financial stability. Additionally, 9 analysts have revised their earnings upwards for the upcoming period, indicating a potential shift in the company's financial trajectory. However, these positive signals are tempered by analysts' anticipation of a sales decline in the current year and weak gross profit margins, with a gross profit margin of -70.27% for the last twelve months as of Q1 2024.
The company's stock has experienced significant volatility, with a one-month price total return of 18.26% and a three-month price total return of 53.98%. Over the last six months, the price total return has been an impressive 85.08%, suggesting that investors may be responding to the company's strategic moves or broader market trends.
For those interested in a deeper dive into Moderna's financials and future prospects, InvestingPro provides additional insights and analytics. With the use of coupon code PRONEWS24, investors can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a total of 14 InvestingPro Tips for Moderna, including information on profitability, return on assets, and analyst fair value assessments.
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