Moderna falls 20% amid reports that insiders have sold $89 million in shares this year as the stock has spiked
by Matthew Fox- Moderna dropped as much as 20% on Wednesday amid a report from Stat News that insiders at the biotech company have liquidated $89 million in stock so far in 2020.
- Moderna shares more than quadrupled from the beginning of 2020 to their 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.
- Jim Cramer said on CNBC Wednesday morning, "Moderna insider sales is horrendous ... I hope the SEC looks into it."
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Moderna fell as much as 20% on Wednesday amid a report from Stat News detailing that insiders at the company have collectively sold $89 million in stock year-to-date.
The stock sales were prescheduled through a corporate 105b-1 trading plan, which is an SEC rule that allows corporate insiders to schedule the predetermined buying or selling of shares in the future, in an effort to remove the perception of insider trading.
Shares of Moderna have skyrocketed in 2020 as investors bid up the company on hopes of its COVID-19 vaccine efforts.
At its $87 peak on May 18, Moderna stock was up 344% from its January 2 open of $19.57.
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 releasing positive news on its phase-one COVID-19 vaccine efforts.
Insiders who have sold shares in 2020 include the CEO, chief financial officer, chief technical officer, and chief medical officer, SEC filings showed.
According to Stat News, the insider sales have led to combined profits of more than $80 million.
CNBC's Jim Cramer called Moderna's insider sales "horrendous" on Wednesday morning.
"Moderna insider sales is horrendous ... I hope the SEC looks into it," Cramer said on CNBC's "Opening Bell."
A request for comment from Moderna was not answered in time for publication of this article. Business Insider will update the story if the company responds.
Moderna was down as much as 20% to $46.14 in Wednesday morning trading.
