Chief Technical Ops Officer Sells 9,743 Shares

Focused on next-generation vaccines for bacterial diseases, this biotech just reported a notable insider sale amid a challenging year.

Harpreet S. Dhaliwal, Chief Technical Ops Officer of Vaxcyte (NASDAQ:PCVX), disposed of 9,743 shares in an open-market sale valued at approximately $454,891 according to the SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average purchase price ($46.69); post-transaction value based on Jan. 2 market close ($46.46).

Key questions

• How significant was this sale in relation to Dhaliwal's prior holdings?
  The transaction reduced direct ownership by 28.9%, shifting Dhaliwal's stake from 33,671 shares to 23,928 shares, with no remaining indirect exposure.
• Were any derivative, trust, or administrative mechanisms involved?
  This was a straightforward open-market sale of common stock with no derivative exercise, trust, or administrative withholdings reported in the filing.

Company overview

* 1-year performance calculated using Jan. 2 as the reference date.

Company snapshot

Vaxcyte is a clinical-stage biotechnology company specializing in the development of next-generation protein vaccines to address unmet medical needs in bacterial infectious disease prevention. With a pipeline led by VAX-24, the company leverages advanced conjugation and protein engineering technologies to expand vaccine coverage and address antibiotic resistance. The strategy centers on innovation in vaccine design and a focus on diseases with significant global health impact, positioning it as a differentiated player in the vaccine development landscape.

• Develops clinical-stage vaccines, including VAX-24 for pneumococcal disease, VAX-XP for emerging strains, VAX-A1 for Group A Strep, and VAX-PG for periodontitis.
• Operates a biotechnology business model focused on research, development, and eventual commercialization of novel protein-based vaccines targeting bacterial infectious diseases.
• Targets healthcare providers, hospitals, and public health agencies seeking advanced vaccine solutions for infectious disease prevention.

What this transaction means for investors

Harpreet Dhaliwal sold a significant portion of his holdings on Dec. 31. The 9,743 share sale represented 28.9% of his holdings.

The transaction comes after a challenging year. The stock price sagged 44.2% over the last year through Jan. 2, while the S&P 500 index returned 18.4% during this period.

Notably, Vaxcyte's shares experienced a sharp drop in late March and early April before modestly recovering. Dhaliwal's transaction could indicate a lack of confidence that the stock price will sustain this momentum.

Vaxcyte doesn't have any approved products in the market, and hence, doesn't produce any revenue. The company lost $520.1 million during the first nine months of 2025.

Monitoring the progress in the approval process will provide a key indicator of the company's success. While you're doing that, following insider transactions can provide clues into directors' and officers' confidence in gaining product approvals.

Glossary

Open-market sale: The sale of securities on a public exchange at prevailing market prices, not through private arrangements.
SEC Form 4: A required filing disclosing insider transactions in a public company’s securities.
Direct holdings: Shares owned personally by an individual, not through trusts or other entities.
Indirect exposure: Ownership or economic interest in shares held via trusts, family members, or other entities.
Derivative activity: Transactions involving financial contracts whose value is based on an underlying asset, such as options or warrants.
Trust attribution: Assigning ownership of shares to an individual through a trust or similar legal arrangement.
Weighted average purchase price: The average price paid per share, calculated by weighting each purchase price by the number of shares bought or sold.
Clinical-stage: Refers to a company or product currently undergoing human clinical trials but not yet approved for commercial sale.
Conjugation: A vaccine technology that links a protein to a polysaccharide to enhance immune response.
Antibiotic resistance: The ability of bacteria to withstand the effects of antibiotics, making infections harder to treat.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
TTM: The 12-month period ending with the most recent quarterly report.

Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.