Liquidia (NASDAQ:LQDA) Stock Price Up 7.2% - Should You Buy?

Key Points

• Liquidia shares rose 7.2% to about $42.56 in mid-day trading, with volume increasing 13% above the average.
• Analyst sentiment is mixed: the stock carries an average “Hold” rating, but the average price target of $72.85 implies substantial potential upside.
• Liquidia reported strong revenue growth of 1,842.1% year over year, though quarterly EPS slightly missed expectations; insiders have also sold shares, primarily to cover tax obligations tied to equity awards.

Liquidia Corporation (NASDAQ:LQDA - Get Free Report) was up 7.2% during mid-day trading on Friday. The stock traded as high as $42.37 and last traded at $42.5550. Approximately 2,562,494 shares changed hands during trading, an increase of 13% from the average daily volume of 2,260,279 shares. The stock had previously closed at $39.69.

Analysts Set New Price Targets

LQDA has been the subject of a number of research reports. Wall Street Zen cut Liquidia from a "buy" rating to a "hold" rating in a research report on Saturday, October 3rd. Raymond James Financial reaffirmed an "outperform" rating on shares of Liquidia in a research report on Thursday, October 8th. Wedbush set a $58.00 target price on Liquidia in a research note on Friday, October 2nd. BTIG Research upgraded shares of Liquidia from a "neutral" rating to a "buy" rating and set a $70.00 price target for the company in a research note on Wednesday, October 14th. Finally, Royal Bank Of Canada set a $65.00 price objective on shares of Liquidia in a research report on Thursday, October 15th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $72.85.

Liquidia Trading Up 7.5%

The business has a fifty day moving average price of $56.47 and a 200 day moving average price of $61.72. 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 firm has a market capitalization of $3.82 billion, a price-to-earnings ratio of 31.16, a P/E/G ratio of 0.34 and a beta of 0.61.

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

Insider Activity at Liquidia

In related news, insider Scott Moomaw sold 8,863 shares of Liquidia stock in a transaction on Monday, October 12th. The stock was sold at an average price of $28.48, for a total transaction of $252,418.24. Following the completion of the sale, the insider directly owned 181,487 shares of the company's stock, valued at $5,168,749.76. The trade was a 4.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 that occurred on Monday, October 12th. The stock was sold at an average price of $28.48, for a total value of $262,528.64. Following the sale, the insider directly owned 126,368 shares of the company's stock, valued at approximately $3,598,960.64. The trade was a 6.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. In the last ninety days, insiders sold 566,598 shares of company stock valued at $25,848,390. Corporate insiders own 25.60% of the company's stock.

Hedge Funds Weigh In On Liquidia

Several institutional investors and hedge funds have recently modified their holdings of the business. Sterling Capital Management LLC grew its position in Liquidia by 839.1% in the 3rd quarter. Sterling Capital Management LLC now owns 2,329 shares of the company's stock valued at $70,000 after purchasing an additional 2,081 shares during the period. Yousif Capital Management LLC raised its stake in shares of Liquidia by 4.1% during the third quarter. Yousif Capital Management LLC now owns 20,008 shares of the company's stock worth $605,000 after acquiring an additional 794 shares in the last quarter. Nisa Investment Advisors LLC lifted its stake in shares of Liquidia by 13.8% in the 3rd quarter. Nisa Investment Advisors LLC now owns 2,634 shares of the company's stock valued at $80,000 after acquiring an additional 320 shares during the last quarter. WINTON GROUP Ltd purchased a new stake in shares of Liquidia during the second quarter worth about $335,000. Finally, Arizona State Retirement System lifted its position in Liquidia by 5.4% during the second quarter. Arizona State Retirement System now owns 17,627 shares of the company's stock valued at $1,405,000 after buying an additional 900 shares during the period. 64.54% of the stock is currently owned by institutional investors and hedge funds.

About Liquidia

Liquidia Corporation is a biopharmaceutical company focused on developing and commercializing therapies for patients with pulmonary hypertension and other serious cardiopulmonary diseases. The company is headquartered in Research Triangle Park, North Carolina, and uses its proprietary PRINT technology to engineer drug particles with controlled size, shape and composition for inhaled and injectable medicines.

Liquidia's lead product is Yutrepia (treprostinil) inhalation powder, a dry-powder formulation of treprostinil delivered through a proprietary inhaler.

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