Liquidia (NASDAQ:LQDA) Shares Gap Up - Here's Why

Key Points

• Liquidia shares gapped higher, opening at $29.27 versus a prior close of $27.38, and last traded near $29.02.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating and an average price target of $83.69, with recent targets ranging from $58 to $129.
• Insiders have sold 642,200 shares worth approximately $38.1 million over the past 90 days, while institutional investors own 64.54% of the company.

Liquidia Corporation (NASDAQ:LQDA - Get Free Report)'s stock price gapped up prior to trading on Monday. The stock had previously closed at $27.38, but opened at $29.27. Liquidia shares last traded at $29.0220, with a volume of 955,427 shares.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the company. Wedbush set a $58.00 price objective on Liquidia in a research note on Friday, October 2nd. Citigroup reaffirmed a "neutral" rating on shares of Liquidia in a research report on Thursday, October 1st. Piper Sandler set a $129.00 target price on Liquidia in a report on Friday, July 24th. Weiss Ratings upgraded Liquidia from a "sell (d-)" rating to a "hold (c)" rating in a report on Tuesday, September 22nd. Finally, HC Wainwright reduced their price target on shares of Liquidia from $130.00 to $58.00 and set a "buy" rating for the company in a research report on Friday, October 2nd. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, Liquidia presently has a consensus rating of "Hold" and an average price target of $83.69.

Liquidia Stock Up 2.0%

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 company has a market cap of $2.50 billion, a price-to-earnings ratio of 20.11 and a beta of 0.61. The stock's fifty day moving average is $65.76 and its two-hundred day moving average is $61.88.

Liquidia (NASDAQ:LQDA - Get Free Report) last announced its quarterly earnings results on Wednesday, August 12th. The company reported $0.74 earnings per share for the quarter, missing the consensus estimate of $0.76 by ($0.02). The business had revenue of $171.68 million during the quarter, compared to the consensus estimate of $168.48 million. Liquidia had a net margin of 30.74% and a return on equity of 149.65%. Liquidia's revenue was up 1842.1% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.49) EPS. Sell-side analysts predict that Liquidia Corporation will post 2.05 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Jason Adair sold 73,631 shares of the business's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $69.09, for a total transaction of $5,087,165.79. Following the transaction, the insider directly owned 174,606 shares in the company, valued at approximately $12,063,528.54. The trade was a 29.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen M. Bloch sold 235,477 shares of the business's stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $27.13, for a total value of $6,388,491.01. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 642,200 shares of company stock valued at $38,148,433. 25.60% of the stock is currently owned by company insiders.

Institutional Trading of Liquidia

A number of institutional investors and hedge funds have recently modified their holdings of LQDA. Globeflex Capital L P bought a new position in Liquidia during the second quarter valued at about $175,000. Nykredit A S purchased a new stake in Liquidia during the second quarter worth about $177,000. Hurley Capital LLC raised its position in Liquidia by 140.7% in the fourth quarter. Hurley Capital LLC now owns 5,200 shares of the company's stock worth $179,000 after acquiring an additional 3,040 shares during the period. Apollon Wealth Management LLC bought a new stake in Liquidia in the first quarter worth about $247,000. Finally, Archer Investment Corp bought a new stake in Liquidia in the first quarter worth about $259,000. 64.54% of the stock is owned by hedge funds and other institutional investors.

Liquidia Company Profile

Liquidia Corporation is a biopharmaceutical company focused on developing and commercializing therapies for patients with serious cardiopulmonary diseases and other rare conditions. The company uses its proprietary PRINT technology to engineer drug particles with controlled size, shape and composition, with the goal of improving the delivery and performance of medicines.

Liquidia's lead product is Yutrepia (treprostinil) inhalation powder, a dry-powder inhaler designed for the treatment of pulmonary arterial hypertension (PAH).

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