Liquidia Insiders Placed Bullish Bets Worth US$3.00m

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Over the last year, a good number of insiders have significantly increased their holdings in Liquidia Corporation (NASDAQ:LQDA). This is encouraging because it indicates that insiders are more optimistic about the company’s prospects.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Liquidia

The Last 12 Months Of Insider Transactions At Liquidia

Over the last year, we can see that the biggest insider purchase was by Independent Director Paul Manning for US$2.0m worth of shares, at about US$7.16 per share. Even though the purchase was made at a significantly lower price than the recent price (US$13.77), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 419.00k shares worth US$3.0m. But insiders sold 43.47k shares worth US$563k. In total, Liquidia insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Liquidia Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Liquidia shares. In total, CEO & Director Roger Jeffs dumped US$452k worth of shares in that time, and we didn’t record any purchases whatsoever. In light of this it’s hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of Liquidia

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Liquidia insiders own 11% of the company, currently worth about US$118m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Liquidia Insiders?

An insider sold stock recently, but they haven’t been buying. On the other hand, the insider transactions over the last year are encouraging. On top of that, insiders own a significant portion of the company. So we’re happy to look past recent trading. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Case in point: We’ve spotted 2 warning signs for Liquidia you should be aware of.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.