Liquidia Stock Down 12% But Insiders Still In US$74k Profit
Insiders who purchased Liquidia Corporation (NASDAQ:LQDA) shares in the past 12 months are unlikely to be deeply impacted by the stock's 12% decline over the past week. After taking the recent loss into consideration, the US$292k worth of stock they bought is now worth US$366k, indicating that their investment yielded a positive return.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Liquidia
The Last 12 Months Of Insider Transactions At Liquidia
The CEO & Director Roger Jeffs made the biggest insider purchase in the last 12 months. That single transaction was for US$244k worth of shares at a price of US$5.57 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$7.06. 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.
Liquidia insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Does Liquidia Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Liquidia insiders own 12% of the company, worth about US$56m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Liquidia Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Liquidia insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Liquidia. In terms of investment risks, we've identified 1 warning sign with Liquidia and understanding it 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, but not derivative transactions.
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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.
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