We wouldn’t blame Novavax, Inc. (NASDAQ: NVAX) if they were a little concerned that David Mott, the independent director, recently sold about US $ 6.3 million of shares at an average price of US $ 253. This is a significant divestiture, and it reduced the size of their operation by 38%, which is noticeable but not too serious.
Novavax insider trading over the past year
In fact, the recent sale by David Mott was the largest sale of Novavax shares by an insider in the past twelve months, according to our records. This means that an insider was selling shares around the current price of US $ 248. While we generally don’t like to see insider sales, it is more of a concern if the sales come at a lower price. In this case, the big sale took place around the current price, so it’s not too bad (but it’s still not positive).
Over the past year, we have seen more insider sales of Novavax shares than purchases. Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. By clicking on the graph below, you can see the precise detail of each insider trade!
NasdaqGS: NVAX Insider Trading Volume September 26, 2021
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Insider ownership of Novavax
Many investors like to check how well a company is owned by insiders. I think it’s a good sign if the insiders own a significant number of shares in the company. Insiders own 0.3% of Novavax shares, worth around $ 59 million. This level of insider ownership is good but just short of being particularly noteworthy. It certainly suggests a reasonable degree of alignment.
What could insider trading at Novavax tell us?
An insider recently sold stocks, but they didn’t buy. And our longer-term analysis of insider trading did not provide confidence either. Insiders own stocks, but we remain fairly cautious given the sales history. We are in no rush to buy! While we love to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. For example, Novavax has 3 warning signs (and 1 which cannot be ignored) we think you should know.
If you would rather consult with another company – one with potentially superior finances – then don’t miss this free list of interesting companies, which have a HIGH return on equity and low leverage.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
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