Liquidia Insiders Placed Bullish Bets Worth US$3.00m

Quite a few insiders have dramatically grown their holdings in Liquidia Corporation (NASDAQ:LQDA) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out 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. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$12.94. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 419.00k shares for US$3.0m. But insiders sold 43.47k shares worth US$563k. In the last twelve months there was more buying than selling by Liquidia insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Liquidia is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Liquidia Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Liquidia shares. In total, CEO & Director Roger Jeffs sold US$452k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Liquidia Boast High Insider Ownership?

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$111m based on the recent share price. 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?

An insider sold stock recently, but they haven't been buying. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So the recent selling doesn't worry us. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Liquidia. Every company has risks, and we've spotted 2 warning signs for Liquidia you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com