Potential Liquidia Corporation (NASDAQ:LQDA) shareholders may wish to note that the CEO & Director, Roger Jeffs, recently bought US$244k worth of stock, paying US$5.57 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 2.6%.
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$5.10 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$6.09. 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!
Liquidia is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Liquidia insiders own about US$48m worth of shares. That equates to 12% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Liquidia Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Liquidia shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Liquidia is showing 3 warning signs in our investment analysis, and 1 of those is a bit concerning...
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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