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

Key Points

• Vaxcyte saw unusually heavy bearish options activity: Investors purchased 8,093 put options, about 259% above the typical volume of 2,254 contracts.
• Shares fell 9.3% to $66.95 during high-volume trading, though analysts maintain a consensus “Moderate Buy” rating with a $108.60 price target.
• Positive Phase 3 results for VAX-31 strengthened Vaxcyte’s prospects in the adult pneumococcal vaccine market, but planned stock, warrant, and convertible-note offerings introduce dilution and debt-overhang risks.

Vaxcyte, Inc. (NASDAQ:PCVX - Get Free Report) saw some unusual options trading on Tuesday. Stock investors acquired 8,093 put options on the stock. This represents an increase of 259% compared to the typical volume of 2,254 put options.

Analyst Ratings Changes

A number of equities research analysts have issued reports on PCVX shares. Bank of America cut their price target on shares of Vaxcyte from $133.00 to $130.00 and set a "buy" rating on the stock in a report on Monday, September 28th. BTIG Research reiterated a "buy" rating and set a $89.00 target price on shares of Vaxcyte in a report on Monday. Wall Street Zen raised Vaxcyte from a "strong sell" rating to a "sell" rating in a research note on Saturday, August 8th. Zacks Research upgraded Vaxcyte from a "strong sell" rating to a "hold" rating in a report on Wednesday, August 12th. Finally, Guggenheim increased their price objective on Vaxcyte from $116.00 to $125.00 and gave the stock a "buy" rating in a report on Monday. Six analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Vaxcyte presently has a consensus rating of "Moderate Buy" and a consensus price target of $108.60.

Vaxcyte Stock Down 9.3%

Shares of PCVX traded down $6.87 during trading hours on Tuesday, reaching $66.95. 2,993,667 shares of the company traded hands, compared to its average volume of 1,464,883. Vaxcyte has a 12 month low of $39.87 and a 12 month high of $90.75. The company's fifty day moving average price is $59.04 and its two-hundred day moving average price is $56.31. The company has a market capitalization of $9.96 billion, a price-to-earnings ratio of -8.74 and a beta of 1.23.

Vaxcyte (NASDAQ:PCVX - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported ($1.97) EPS for the quarter, topping the consensus estimate of ($2.06) by $0.09. During the same quarter in the previous year, the business earned ($1.22) earnings per share. On average, analysts expect that Vaxcyte will post -7.6 EPS for the current year.

Trending Headlines about Vaxcyte

Here are the key news stories impacting Vaxcyte this week:

• Positive Sentiment: Vaxcyte reported that its 31-valent pneumococcal vaccine candidate, VAX-31, met all prespecified primary endpoints in the pivotal OPUS-1 Phase 3 trial across the age groups studied. The candidate produced immune responses comparable to Pfizer’s Prevnar 20 and/or Merck’s Capvaxive, strengthening the case that VAX-31 could compete in the adult pneumococcal vaccine market. Vaxcyte Reports Positive Topline Data from OPUS-1
• Positive Sentiment: Analysts responded favorably to the late-stage readout. Jefferies described the results as supporting a “blue-sky” scenario and estimated the addressable adult pneumococcal vaccine market at roughly $3 billion to $6 billion or more. Needham raised its price target from $110 to $122 while retaining a Buy rating, and BTIG reaffirmed Buy with an $89 target. Vaxcyte Given New $122 Price Target
• Neutral Sentiment: Trading activity has been elevated following the clinical update. Investors bought 2,615 call options Monday, while 8,093 put options changed hands Tuesday—about 259% above average put volume—suggesting heightened hedging and uncertainty after the sharp move.
• Negative Sentiment: Vaxcyte launched separate offerings for $500 million of common stock and pre-funded warrants and $500 million of convertible senior notes due 2032, with potential over-allotments of up to $75 million for each offering. The financing should bolster resources for development and commercialization, but the equity and warrant issuance creates dilution risk, while the convertible notes add future conversion and debt-related overhang. Vaxcyte Announces Proposed Public Offerings

Insider Buying and Selling

In other Vaxcyte news, CFO Andrew Guggenhime sold 10,000 shares of Vaxcyte stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $53.89, for a total value of $538,900.00. Following the transaction, the chief financial officer directly owned 105,176 shares of the company's stock, valued at $5,667,934.64. The trade was a 8.68% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Grant Pickering sold 16,198 shares of the business's stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $55.63, for a total value 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 $25,214,130.61. The trade was a 3.45% 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. Insiders have sold 55,890 shares of company stock valued at $3,111,189 in the last 90 days. 3.30% of the stock is owned by insiders.

Institutional Trading of Vaxcyte

Hedge funds have recently made changes to their positions in the stock. IFP Advisors Inc grew its stake in shares of Vaxcyte by 72.8% in 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 last quarter. Caitong International Asset Management Co. Ltd raised its stake in Vaxcyte by 1,924.4% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 830 shares of the company's stock valued at $38,000 after buying an additional 789 shares during the last quarter. Capital Advisors Ltd. LLC bought a new stake in Vaxcyte in the first quarter worth $58,000. EverSource Wealth Advisors LLC boosted its holdings in Vaxcyte by 68.4% in the first quarter. EverSource Wealth Advisors LLC now owns 1,248 shares of the company's stock worth $73,000 after acquiring an additional 507 shares in the last quarter. Finally, Allworth Financial LP purchased a new stake in shares of Vaxcyte in the second quarter worth $75,000. 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.

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