Insiders At Novavax Sold US$713k Of Stock Potentially Indicating Weakness

Even though Novavax, Inc. (NASDAQ:NVAX) stock gained 23% last week, insiders who sold US$713k worth of stock over the past year are probably better off. Selling at an average price of US$12.54, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Novavax

Novavax Insider Transactions Over The Last Year

The insider, Filip Dubovsky, made the biggest insider sale in the last 12 months. That single transaction was for US$384k worth of shares at a price of US$13.90 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$9.76). So it may not shed much light on insider confidence at current levels.

Over the last year we saw more insider selling of Novavax shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Novavax better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Novavax Have Sold Stock Recently

The last quarter saw substantial insider selling of Novavax shares. Specifically, insiders ditched US$120k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Novavax Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$4.4m worth of Novavax stock, about 0.3% of the company. We consider this fairly low insider ownership.

What Might The Insider Transactions At Novavax Tell Us?

Insiders sold Novavax shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Novavax is showing 2 warning signs in our investment analysis, and 1 of those is significant...

Of course Novavax may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.