Liquidia Insiders Placed Bullish Bets Worth US$3.00m

Multiple insiders secured a larger position in Liquidia Corporation (NASDAQ:LQDA) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See 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. We do like to see buying, but this purchase was made at well below the current price of US$14.13. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 419.00k shares for US$3.0m. On the other hand they divested 14.89k shares, for US$110k. 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. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Liquidia Insiders Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Liquidia. Insiders spent US$3.0m on shares. But we did see Chief Medical Officer Rajeev Saggar sell shares worth US$110k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Insider Ownership Of Liquidia

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Liquidia insiders own 11% of the company, worth about US$117m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Liquidia Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Liquidia. Looks promising! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 2 warning signs with Liquidia and understanding them should be part of your investment process.

But note: Liquidia may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.