Liquidia Corp executive sells over $5,000 in company stock By Investing.com

Liquidia Corp (NASDAQ:LQDA) Chief Commercial Officer Scott Moomaw recently engaged in a series of stock transactions involving the company’s shares, according to the latest SEC filings. Moomaw sold a total of 546 shares at an average price of $9.4997, totaling approximately $5,186.

The transactions took place on September 3, 2024, under a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading. The sale was reportedly conducted to cover taxes associated with the settlement of restricted stock units (RSUs).

Additionally, the filing indicates that Moomaw acquired 1,875 shares of common stock on August 30, 2024, through the vesting of RSUs. This acquisition was part of a grant awarded on January 16, 2022, which included 30,000 RSUs with a vesting schedule extending over several years. As of August 30, 2024, a total of 18,750 RSUs from this grant have vested.

Following these transactions, Moomaw’s direct ownership in Liquidia Corp includes 52,082 unvested RSUs from a grant on January 11, 2023, 49,723 RSUs from a grant on January 11, 2024, and 9,629 shares acquired under the company’s 2020 Employee Stock Purchase Plan. In total, Moomaw directly owns 154,325 shares after the reported sale.

Investors often monitor insider transactions as they can provide insights into executives’ perspectives on the company’s current valuation and future prospects. Liquidia Corp, a pharmaceutical preparations company, continues to operate under the leadership of its executive team, with Moomaw playing a significant role in its commercial strategies.

In other recent news, Liquidia Corporation has initiated legal proceedings against the U.S. Food and Drug Administration (FDA) contesting the agency’s grant of exclusivity to a competitor’s drug, Tyvaso DPI®, developed by United Therapeutics (NASDAQ:). This decision has delayed the market entry of Liquidia’s YUTREPIA™, a treatment for rare cardiopulmonary diseases. Analyst firms H.C. Wainwright, BofA Securities, Jefferies and BTIG have maintained Buy ratings for Liquidia but reduced their price targets following this development.

On the financial front, Liquidia reported a decrease in revenue to $3.7 million in Q2 2024, down from $4.8 million in the same quarter of the previous year, maintaining a cash reserve of $133 million. Meanwhile, Goldman Sachs retained a Neutral rating for United Therapeutics, acknowledging the firm’s advantage following the FDA’s decision. These are some of the recent developments for both Liquidia Technologies (NASDAQ:) and United Therapeutics.

InvestingPro Insights

As Liquidia Corp (NASDAQ:LQDA) maneuvers through its commercial strategies, recent insider transactions by Chief Commercial Officer Scott Moomaw have caught the attention of market watchers. To provide investors with a deeper understanding of the company’s financial health and market position, InvestingPro has compiled some key metrics and tips that could be indicative of Liquidia’s future performance.

InvestingPro Data shows a market capitalization of $685 million, a reflection of the company’s size and market value. Despite a challenging period, the company maintains a gross profit margin of 69.52% as of the last twelve months leading up to Q2 2024, suggesting that it retains the ability to generate profit from its sales. However, with a negative operating income margin of -655.83% over the same period, it’s clear that the company’s expenses far exceed its net revenue.

InvestingPro Tips highlight that analysts have revised their earnings downwards for the upcoming period and anticipate a sales decline in the current year. Furthermore, the expectation is that net income will drop and the company will not be profitable this year. These insights, paired with the company’s recent stock performance—experiencing a one-month price total return of -18.97%—suggest that investors may need to brace for a potentially rocky road ahead.

It’s also noteworthy that Liquidia Corp is trading at a high Price / Book multiple of 10.95, which could suggest that the stock is relatively expensive compared to the company’s book value. Yet, Liquidia’s liquid assets exceed its short-term obligations, providing some financial flexibility in the near term.

For investors seeking a comprehensive analysis, InvestingPro offers additional insights on Liquidia Corp. There are currently 11 more InvestingPro Tips available, which can be accessed for a deeper dive into the company’s financials and market performance. These tips can be found at: https://www.investing.com/pro/LQDA

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