Why You Shouldn't Worry About Moderna's Recent Insider Selling

Here's a story that might smell fishy to you. A small biotech sees its shares skyrocket after advancing to a clinical study with its promising COVID-19 vaccine candidate. And on the day that this biotech announces encouraging early results from that study, one of its top executives begins to sell shares. Over the next two days, three other top execs, including the company's CEO, unload a lot of shares. 

This scenario is exactly what unfolded for Moderna (NASDAQ: MRNA) last week. On Monday, May 18, the biotech reported positive preliminary results from its phase 1 study of novel coronavirus vaccine candidate mRNA-1273. That same day, CFO Lorence Kim sold some of his shares. Within the next two days, CEO Stephane Bancel, Chief Medical Officer Tal Zaks, and General Counsel and Secretary Lori Henderson sold a combined total of more than 200,000 shares of Moderna stock. 

It's the kind of thing that certainly raises eyebrows. It might even make some Moderna shareholders worry that there's something they don't know that insiders do. But no worries are needed at all about the insider selling in this case. 

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Source Fool.com