Liquidia (NASDAQ:LQDA) Stock Lifted to "Strong-Buy" by Raymond James Financial

Key Points

• Raymond James upgraded Liquidia to “Strong Buy” and raised its price target from $53 to $77, implying about 49.8% upside from the stock’s current price.
• Liquidia reported third-quarter revenue of $225.3 million, up 314.9% year over year and above estimates, driven by $222.7 million in YUTREPIA sales; adjusted EPS also beat expectations.
• Despite the strong sales and adjusted-earnings results, the company reported a GAAP loss of $2.64 per share. Analyst views remain mixed, with MarketBeat’s consensus rating at “Hold” and an average target of $76.77.

Liquidia (NASDAQ:LQDA - Get Free Report) was upgraded by Raymond James Financial from an "outperform" rating to a "strong-buy" rating in a research report issued on Wednesday, Marketbeat.com reports. The brokerage presently has a $77.00 price objective on the stock, up from their prior price objective of $53.00. Raymond James Financial's price objective would indicate a potential upside of 49.81% from the company's current price.

Other equities analysts have also recently issued reports about the stock. BTIG Research raised their target price on shares of Liquidia from $70.00 to $87.00 and gave the company a "buy" rating in a research note on Tuesday. Stephens set a $130.00 target price on shares of Liquidia in a report on Friday, July 24th. Wall Street Zen lowered shares of Liquidia from a "buy" rating to a "hold" rating in a research report on Saturday, October 3rd. Wedbush set a $58.00 price target on shares of Liquidia in a research note on Friday, October 2nd. Finally, Needham & Company LLC lifted their price objective on shares of Liquidia from $58.00 to $66.00 and gave the company a "buy" rating in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $76.77.

Liquidia Stock Performance

Shares of NASDAQ LQDA opened at $51.40 on Wednesday. The stock has a 50 day moving average price of $49.65 and a 200 day moving average price of $54.53. Liquidia has a 52 week low of $22.31 and a 52 week high of $93.61. The company has a debt-to-equity ratio of 0.63, a quick ratio of 2.12 and a current ratio of 2.31. The stock has a market capitalization of $4.60 billion, a PE ratio of 37.52, a price-to-earnings-growth ratio of 0.42 and a beta of 0.40.

Liquidia (NASDAQ:LQDA - Get Free Report) last posted its quarterly earnings results on Tuesday, November 10th. The company reported ($2.64) earnings per share for the quarter, missing analysts' consensus estimates of $0.96 by ($3.60). The company had revenue of $225.30 million during the quarter, compared to the consensus estimate of $214.18 million. Liquidia had a net margin of 30.74% and a return on equity of 149.65%. The firm's revenue for the quarter was up 314.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.04) earnings per share. Analysts predict that Liquidia will post 2.05 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CAO Dana Boyle sold 1,581 shares of the stock in a transaction on Monday, October 26th. The stock was sold at an average price of $43.19, for a total value of $68,283.39. Following the sale, the chief accounting officer owned 164,028 shares in the company, valued at approximately $7,084,369.32. This represents a 0.95% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Rajeev Saggar sold 9,218 shares of the stock in a transaction on Monday, October 12th. The shares were sold at an average price of $28.48, for a total value of $262,528.64. Following the completion of the sale, the insider owned 126,368 shares in the company, valued at approximately $3,598,960.64. This trade represents a 6.80% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 566,579 shares of company stock valued at $25,746,120. Insiders own 25.60% of the company's stock.

Institutional Trading of Liquidia

A number of hedge funds have recently modified their holdings of the stock. Bank of America Corp DE raised its holdings in Liquidia by 18.7% in the 1st quarter. Bank of America Corp DE now owns 2,287,792 shares of the company's stock valued at $86,341,000 after acquiring an additional 360,372 shares during the period. Eversept Partners LP boosted its holdings in shares of Liquidia by 33.0% during the first quarter. Eversept Partners LP now owns 677,392 shares of the company's stock worth $25,565,000 after acquiring an additional 167,949 shares during the period. Public Sector Pension Investment Board grew its position in shares of Liquidia by 90.0% in the third quarter. Public Sector Pension Investment Board now owns 458,708 shares of the company's stock valued at $13,881,000 after purchasing an additional 217,332 shares during the last quarter. Pale Fire Capital SE grew its position in shares of Liquidia by 2.4% in the first quarter. Pale Fire Capital SE now owns 388,377 shares of the company's stock valued at $14,657,000 after purchasing an additional 8,985 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new position in shares of Liquidia during the second quarter worth approximately $29,694,000. Institutional investors and hedge funds own 64.54% of the company's stock.

Key Stories Impacting Liquidia

Here are the key news stories impacting Liquidia this week:

• Positive Sentiment: YUTREPIA generated $222.7 million in third-quarter sales, helping lift total revenue to $225.3 million—up 314.9% year over year and ahead of analysts’ estimates. Adjusted EPS was reported at $0.80, above the $0.77 consensus. Liquidia Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Reports said litigation was resolved, potentially reducing a significant source of uncertainty for the company. Shares reportedly rose following the results and legal update. Liquidia rises after third-quarter results, litigation resolved
• Positive Sentiment: BTIG raised its price target to $87 from $70 and maintained a Buy rating, reflecting a more bullish analyst outlook. BTIG Research ratings
• Negative Sentiment: Despite the adjusted-earnings beat, Liquidia reported a GAAP loss of $2.64 per share, versus expectations for a profit. A $389.7 million charge reportedly masked the strong sales quarter, so investors may focus on its impact and the company’s underlying earnings outlook. A charge masks a booming YUTREPIA quarter

About Liquidia

Liquidia Corporation is a biopharmaceutical company focused on developing and commercializing treatments for pulmonary hypertension and other serious diseases. Its work includes inhaled therapies designed to deliver medicines to the lungs. The company's marketed product, Yutrepia (treprostinil) inhalation powder, is approved in the United States for adults with pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease. Liquidia also has a pipeline of investigational therapies, including other formulations of treprostinil.

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