Traders Buy High Volume of Put Options on Vaxcyte (NASDAQ:PCVX)

Vaxcyte, Inc. (NASDAQ:PCVX) was the target of some unusual options trading on Tuesday. Stock traders purchased 8,093 put options on the stock. This represents an increase of 259% compared to the average daily volume of 2,254 put options.

Vaxcyte Stock Performance

NASDAQ:PCVX opened at $66.96 on Thursday. The company has a market cap of $9.96 billion, a price-to-earnings ratio of -8.78 and a beta of 1.23. Vaxcyte has a fifty-two week low of $39.87 and a fifty-two week high of $90.75. The stock has a fifty day moving average price of $59.56 and a 200-day moving average price of $56.49.

Vaxcyte (NASDAQ:PCVX) last issued its quarterly earnings results on Wednesday, August 5th. The company reported ($1.97) EPS for the quarter, topping analysts’ consensus estimates of ($2.06) by $0.09. During the same period in the prior year, the firm posted ($1.22) earnings per share. Research analysts predict that Vaxcyte will post -8.07 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of equities analysts recently commented on the stock. Bank of America lowered their price target on shares of Vaxcyte from $133.00 to $130.00 and set a “buy” rating on the stock in a research report on Monday, September 28th. Wall Street Zen raised shares of Vaxcyte from a “strong sell” rating to a “sell” rating in a report on Saturday, August 8th. Weiss Ratings restated a “sell (d-)” rating on shares of Vaxcyte in a research report on Friday, October 2nd. Guggenheim increased their target price on shares of Vaxcyte from $116.00 to $125.00 and gave the stock a “buy” rating in a research report on Monday. Finally, Needham & Company LLC raised their target price on shares of Vaxcyte from $110.00 to $122.00 and gave the stock a “buy” rating in a report on Monday. Six analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $108.60.

Key Stories Impacting Vaxcyte

Here are the key news stories impacting Vaxcyte this week:

• Positive Sentiment: Vaxcyte reported a positive Phase 3 result for its VAX-31 pneumococcal vaccine candidate in adults. The late-stage win strengthens the program’s regulatory and commercial prospects and prompted bullish commentary that the company had reached a potential “blue-sky” outcome. Vaxcyte leaps on positive Phase III trial of VAX-31
• Positive Sentiment: Analysts remain constructive following the clinical update. Needham assigned Vaxcyte a $122 price target, while BTIG reaffirmed its Buy rating, indicating substantial anticipated upside if VAX-31 continues to advance successfully. Vaxcyte given new price target at Needham
• Positive Sentiment: The company priced a financing consisting of $500 million of common stock and pre-funded warrants plus $500 million of 1.50% convertible senior notes due 2032. The proceeds should provide substantial funding for clinical development and commercialization preparations, while the relatively low coupon limits near-term interest expense. Vaxcyte announces pricing of concurrent offerings
• Neutral Sentiment: Options activity was unusually heavy, with investors purchasing 8,093 put contracts—about 259% of typical volume—suggesting increased hedging or bearish speculation, but not necessarily a change in the company’s fundamentals.
• Negative Sentiment: The equity issuance, pre-funded warrants and potentially convertible notes will increase the share count or create future dilution. The financing was priced at $64 per share, below the stock’s recent trading levels, contributing to selling pressure despite the positive trial news.
• Neutral Sentiment: Chief Accounting Officer Elvia Cowan and EVP Jim Wassil sold 19,000 and 18,000 shares, respectively, under pre-arranged Rule 10b5-1 plans. The transactions reduce their holdings but were scheduled sales and therefore provide limited insight into current management sentiment.

Insider Transactions at Vaxcyte

In other news, CEO Grant Pickering sold 16,198 shares of Vaxcyte stock in a transaction on Monday, July 27th. The stock was sold at an average price of $55.63, for a total transaction of $901,094.74. Following the completion of the sale, the chief executive officer owned 453,247 shares of the company’s stock, valued at approximately $25,214,130.61. This trade represents a 3.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Andrew Guggenhime sold 10,000 shares of the business’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $53.89, for a total transaction of $538,900.00. Following the completion of the sale, the chief financial officer directly owned 105,176 shares of the company’s stock, valued at approximately $5,667,934.64. The trade was a 8.68% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 92,890 shares of company stock worth $6,320,569. 3.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Vaxcyte

Hedge funds have recently bought and sold shares of the company. Hsbc Holdings PLC grew its stake in Vaxcyte by 4.0% during the second quarter. Hsbc Holdings PLC now owns 4,151 shares of the company’s stock worth $241,000 after purchasing an additional 159 shares during the period. Meeder Advisory Services Inc. lifted its stake in Vaxcyte by 2.9% in the first quarter. Meeder Advisory Services Inc. now owns 8,335 shares of the company’s stock valued at $484,000 after buying an additional 231 shares during the period. IFP Advisors Inc grew its position in shares of Vaxcyte by 72.8% during the 2nd quarter. IFP Advisors Inc now owns 560 shares of the company’s stock worth $33,000 after buying an additional 236 shares during the period. Northwestern Mutual Wealth Management Co. increased its stake in shares of Vaxcyte by 27.6% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,344 shares of the company’s stock valued at $78,000 after acquiring an additional 291 shares in the last quarter. Finally, Principal Financial Group Inc. increased its stake in shares of Vaxcyte by 7.0% in the 1st quarter. Principal Financial Group Inc. now owns 5,275 shares of the company’s stock valued at $307,000 after acquiring an additional 343 shares in the last quarter. 96.78% of the stock is owned by institutional investors.

Vaxcyte Company Profile

Vaxcyte, Inc (NASDAQ: PCVX) is a clinical-stage biotechnology company focused on developing vaccines to help prevent serious bacterial infections. The company uses its cell-free protein synthesis and advanced conjugation technologies to design vaccines intended to provide broad and durable protection while addressing limitations of existing vaccine products.

Vaxcyte’s lead programs are pneumococcal conjugate vaccine candidates, including VAX-24 and VAX-31, which are designed to target a broad range of pneumococcal serotypes.