What happened

Shares of Dynavax Technologies (NASDAQ:DVAX) were tumbling 7.9% lower at 11:04 a.m. ET on Friday. The only news from the company was an announcement after market close on Thursday that it had granted stock options to five new employees that allow them to purchase a total of 58,500 shares.

Were these options enough to cause the biotech stock to fall? No. Companies routinely give stock options to attract and retain employees. The number of shares that can be purchased with these options represents only a tiny sliver of Dynavax's outstanding shares.

The primary reason behind Dynavax's decline today is more likely that its shares are being pulled down with a broader market sell-off. Investors reacted negatively to a disappointing U.S. jobs report.

A person looking at a giant image of stock charts falling.

Image source: Getty Images.

So what

Most stocks fall during an overall stock market pullback. That doesn't necessarily mean that there's any reason for concern.

In Dynavax's case, the company's outlook appears to remain positive. Dynavax's hepatitis B vaccine Heplisav-B continues to enjoy strong momentum. Its Cpg 1018 adjuvant should also be a significant growth driver for the company, as several vaccine makers are using it with their COVID-19 vaccines.

Now what

The most important things for investors to watch with Dynavax over the near term are regulatory filings from the company's Cpg 1018 collaboration partners. Several COVID-19 vaccine makers that use Dynavax's adjuvant expect to submit for Emergency or Conditional Use Authorizations of their vaccines by year end.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.