Moderna falls 20% amid report that insiders have sold $89 million in shares this year as the stock has spiked
Modernadropped as much as 20% on Wednesday after a STAT News report said executives at the biotechcompany had liquidated $89 million in stock so far in 2020.
- Moderna shares have more than quadrupled since the beginning of 2020, reaching a high of $87 in mid-May, as investors bid up the company in response to its COVID-19 vaccine efforts.
- Moderna shares have since sold off nearly 47% from their peak.
- On CNBC on Wednesday morning, Jim Cramer described the sales as "horrendous," adding, "I hope the SEC looks into it."
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STAT News said the stock sales were prescheduled through a corporate Rule 10b5-1 trading plan, a Securities and Exchange Commission rule that allows corporate insiders to schedule the buying or selling of shares in an effort to remove the perception of insider trading.Shares of Moderna have skyrocketed in 2020 as investors have bid up the company as it develops a COVID-19 vaccine candidate.
Despite Moderna's 47% decline from its recent high, shares are still up more than 135% year-to-date.In addition to the insider sales, Moderna itself sold more than $1 billion in shares after announcing positive news from a phase-one trial of its COVID-19 vaccine candidate.
Read more: Billionaire investor Mario Gabelli's flagship fund has delivered a 3,082% return since its inception. He told us his 13 favorite stocks right now — and the trends he's betting on for a post-coronavirus world.Moderna insiders who have sold shares in 2020 include the CEO, the chief financial officer, the chief technical officer, and the chief medical officer, SEC filings showed. According to STAT News, the insider sales led to combined profits of more than $80 million.
CNBC's Jim Cramer on Wednesday morning called Moderna's insider sales "horrendous."
"I hope the SEC looks into it," Cramer added.Moderna did not immediately respond to a request for comment from Business Insider.
Moderna was down as much as 20%, to $46.14, on Wednesday morning.
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