Vaxcyte, Inc. (NASDAQ:PCVX) CEO Grant Pickering has sold a significant portion of his holdings in the company. The transactions, which took place on March 25, involved the sale of 14,450 shares at prices ranging from $66.42 to $67.405, and an additional 1,550 shares at prices between $67.415 to $67.695. The total value of the shares sold amounts to approximately $1,003,978.
These sales were conducted under a prearranged 10b5-1 trading plan, which allows company insiders to set up a schedule for selling stocks they own in a way that avoids accusations of insider trading. The plan had been adopted on June 26, 2023, well in advance of the transactions.
In addition to the sales, Pickering also exercised options to acquire 15,000 shares of Vaxcyte common stock at a price of $1.79 per share, totaling $26,850. This exercise of options is part of the executive's compensation and allows them to buy stock at a predetermined price.
Following these transactions, Pickering's direct holdings in Vaxcyte have been adjusted to 477,847 shares of common stock. Moreover, the CEO has indirect holdings through trusts for the benefit of his children, each holding 148,670 shares.
Investors and followers of Vaxcyte will likely keep an eye on these insider transactions as they can offer insights into management's perspective on the company's current valuation and future prospects.
InvestingPro Insights
Vaxcyte, Inc. (NASDAQ:PCVX) has experienced significant volatility in its stock price, with a notable increase over the last six months and a strong return over the past year. As of the latest data, the company's market capitalization stands at $7.43 billion, reflecting investor confidence despite the company not being profitable in the last twelve months. The stock has recently seen a price uptick, trading at $67.42, which is 82.18% of its 52-week high.
Analyzing the company's financial health, Vaxcyte holds a more favorable cash position than debt on its balance sheet, which could provide a cushion against market downturns or operational setbacks. However, the company's gross profit margins have been weak, with a reported gross loss of $75 million for the last twelve months as of Q4 2023. This could signal challenges in managing production costs or pricing strategies.
Investors considering Vaxcyte as a potential addition to their portfolio might find these InvestingPro Tips valuable: the company's liquid assets exceed its short-term obligations, suggesting good liquidity management, but analysts are not optimistic about the company's profitability for this year. For those seeking comprehensive analysis, there are 11 additional InvestingPro Tips available at InvestingPro that could provide deeper insights into Vaxcyte's performance and outlook.
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