SAN CARLOS, CA—Vaxcyte, Inc. (NASDAQ:PCVX) Chief Executive Officer Grant Pickering has recently sold a significant portion of his holdings in the company, according to a filing with the Securities and Exchange Commission. The transactions, executed on November 1, 2024, involved the sale of 14,000 shares of Vaxcyte common stock, amounting to a total value of approximately $1.6 million. The shares were sold at an average price range of $106.35 to $108.50 per share.
The sales were carried out under a pre-established Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for selling stocks to avoid potential conflicts of interest. Following these transactions, Pickering retains ownership of 435,219 shares directly and an additional 138,581 shares indirectly through a trust for his children.
Vaxcyte, a biotechnology company based in San Carlos, California, specializes in developing vaccines to address significant infectious diseases.
In other recent news, Vaxcyte, a clinical-stage biotech firm, has seen substantial progress in its vaccine development programs. The company's lead vaccine candidate, VAX-31, has demonstrated promising efficacy in Phase 1/2 trials, leading to increased price targets from several firms. BTIG maintained a Buy rating for Vaxcyte with a target of $160, while BofA Securities and Mizuho raised their targets to $140 and $163 respectively.
Analysts from TD Cowen also maintained a Buy rating, expressing optimism about VAX-31's potential to outperform established vaccines in the pneumococcal conjugate vaccine market. Vaxcyte's other vaccine candidate, VAX-24, is currently undergoing a Phase 2 infant study.
In addition to these developments, Vaxcyte recently completed a significant public offering, raising approximately $1.5 billion. The offering was managed by several financial institutions, including BofA Securities, Jefferies, and Goldman Sachs (NYSE:GS) & Co. LLC.
Vaxcyte has also made changes to its corporate structure with the recent appointment of John P. Furey to its Board of Directors. The company plans to progress VAX-31 into Phase 3 trials for adult indication by mid-2025. These recent developments reflect Vaxcyte's ongoing efforts to develop effective vaccines against bacterial infections.
InvestingPro Insights
Vaxcyte's recent stock performance and financial position offer additional context to CEO Grant Pickering's recent share sale. According to InvestingPro data, the company's stock has shown remarkable strength, with a 109.83% price total return over the past year and a 61.45% return over the last six months. This robust performance aligns with the timing of Pickering's stock sale, which occurred at prices near the stock's 52-week high.
Despite the strong stock performance, InvestingPro Tips highlight that Vaxcyte is not currently profitable and suffers from weak gross profit margins. The company's last twelve months' gross profit stands at -$75 million, with an operating income of -$577.16 million. These figures underscore the challenges faced by early-stage biotechnology companies as they invest heavily in research and development.
On a positive note, an InvestingPro Tip indicates that Vaxcyte holds more cash than debt on its balance sheet, suggesting a solid financial foundation to support its ongoing vaccine development efforts. This financial stability is crucial for a company in the capital-intensive biotech sector.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Vaxcyte, providing a deeper understanding of the company's financial health and market position.
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