Pfizer Inc. (NYSE: PFE) announced on Monday that it has developed a Coronavirus vaccine with up to 90% efficacy in Stage 3 trials. The news reinvigorated the wider market and Pfizer’s stock, but also brought some controversy related to stock sales at the very top of the business.
The company’s CEO sold more than $5 million of stock on the day the announcement was made, and at least one other executive completed a massive sale for more than $1 million in gains.
Details on Pfizer’s Executive Stock Sales
Albert Bourla, CEO of Pfizer Inc. sold 132,508 of his private shares in the company on Monday, at $41.94 each. In a filing with the Securities and Exchange Commission, it was revealed that the sale was worth just under $5.6 million.
Sally Susman, Executive VP at Pfizer Inc. also sold shares. Susman offloaded 43,662 of her shares at the same price as Bourla, generating close to $1.8 million.
While some investors might take this news poorly, as it appears that executives have cashed in on good news, the reality is that these sales were planned months prior and have been fully cleared by regulators.
Executives sell their company stocks (often awarded as part of their remuneration packages) at set intervals. Both Bourla and Susman were already scheduled to sell their stocks this month. While executives can choose to delay their stock sales when the optics could be negative, Pfizer’s leadership decided not to in this case.
Pfizer shares surged by almost 8% in the first trading session of this week. The stock has now stabilized, trading around $38.50 in the pre-market session today.
Is It Time for Investors to Consider Pfizer?
While Pfizer’s Coronavirus vaccine is yet to receive FDA approval, analysts expect that this could happen before the end of the year. The company has already allocated sales of hundreds of thousands of units to Spain, the United States, and the European Union.
The vaccine could generate more than $5 billion in profit in the coming years according to Wall Street insiders. With the stock remaining relatively affordable and with a reliable dividend yield of 3.95%, the company is one of the best biotech investments available today. Its potential to grow revenue and profit with a novel Coronavirus vaccine makes it even more compelling.
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