Liquidia (NASDAQ:LQDA) Share Price Breaks Above Fifty Day Moving Average Following Weak Earnings

Liquidia Corporation (NASDAQ:LQDA) shares crossed above its 50 day moving average during trading on Tuesday after the company announced better than expected quarterly earnings. The stock has a 50 day moving average of $49.65 and traded as high as $51.69. Liquidia shares last traded at $51.40, with a volume of 2,846,811 shares traded.

The company reported ($2.64) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.96 by ($3.60). The business had revenue of $225.30 million during the quarter, compared to analysts’ expectations of $214.18 million. Liquidia had a return on equity of 149.65% and a net margin of 30.74%. The firm’s revenue was up 314.9% on a year-over-year basis. During the same period in the prior year, the company posted ($0.04) earnings per share.

Trending Headlines about Liquidia

Here are the key news stories impacting Liquidia this week:

• Positive Sentiment: Liquidia reported third-quarter revenue of $225.3 million, up 314.9% year over year and above analysts’ expectations. Reports highlighted strong YUTREPIA sales growth; adjusted earnings were also reported above consensus, suggesting improving underlying performance. Liquidia Q3 results Q3 earnings and revenue beat estimates
• Positive Sentiment: BTIG Research raised its price target to $87 from $70 and maintained a Buy rating, signaling greater optimism about LQDA’s prospects. BTIG Research rating
• Negative Sentiment: The reported GAAP loss of $2.64 per share sharply missed estimates. Coverage attributed the result to a $389.7 million charge, which may keep investors focused on the distinction between reported losses and adjusted operating performance. Q3 charge and YUTREPIA sales
• Negative Sentiment: A separate article argued that LQDA looks expensive relative to its earnings power, raising a valuation concern despite the strong revenue growth. Liquidia valuation article

Analyst Ratings Changes

LQDA has been the topic of several recent analyst reports. Citigroup reaffirmed a “neutral” rating on shares of Liquidia in a research report on Thursday, October 1st. Weiss Ratings upgraded shares of Liquidia from a “sell (d-)” rating to a “hold (c)” rating in a report on Tuesday, September 22nd. HC Wainwright upped their target price on Liquidia from $58.00 to $65.00 and gave the company a “buy” rating in a research note on Thursday, October 15th. Zacks Research cut shares of Liquidia from a “hold” rating to a “strong sell” rating in a research note on Tuesday, September 22nd. Finally, Stephens set a $130.00 price objective on Liquidia in a research note on Friday, July 24th. Six research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $74.31.

Insider Transactions at Liquidia

In related news, Director Katherine Rielly-Gauvin sold 36,789 shares of the business’s stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $74.99, for a total value of $2,758,807.11. Following the completion of the transaction, the director directly owned 44,637 shares in the company, valued at approximately $3,347,328.63. The trade was a 45.18% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen M. Bloch sold 235,477 shares of the stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $27.13, for a total value of $6,388,491.01. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 566,579 shares of company stock valued at $25,746,120. Corporate insiders own 25.60% of the company’s stock.

Institutional Investors Weigh In On Liquidia

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. The Manufacturers Life Insurance Company boosted its position in Liquidia by 63.3% during the first quarter. The Manufacturers Life Insurance Company now owns 58,265 shares of the company’s stock valued at $2,199,000 after acquiring an additional 22,592 shares during the last quarter. Bank of New York Mellon Corp bought a new position in shares of Liquidia in the 2nd quarter worth about $29,694,000. Seven Fleet Capital Management LP raised its position in shares of Liquidia by 25.2% in the 2nd quarter. Seven Fleet Capital Management LP now owns 256,603 shares of the company’s stock worth $20,459,000 after acquiring an additional 51,727 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of Liquidia in the 2nd quarter valued at about $1,236,000. Finally, Bank of America Corp DE lifted its stake in shares of Liquidia by 18.7% in the 1st quarter. Bank of America Corp DE now owns 2,287,792 shares of the company’s stock valued at $86,341,000 after purchasing an additional 360,372 shares during the period. Institutional investors own 64.54% of the company’s stock.

Liquidia Price Performance

The company has a debt-to-equity ratio of 0.63, a quick ratio of 2.12 and a current ratio of 2.31. The business has a 50 day moving average price of $49.65 and a 200-day moving average price of $54.53. The company has a market capitalization of $4.60 billion, a price-to-earnings ratio of 37.52, a P/E/G ratio of 0.42 and a beta of 0.40.

Liquidia Company Profile

Liquidia Corporation is a biopharmaceutical company focused on developing and commercializing treatments for pulmonary hypertension and other serious diseases. Its work includes inhaled therapies designed to deliver medicines to the lungs. The company’s marketed product, Yutrepia (treprostinil) inhalation powder, is approved in the United States for adults with pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease. Liquidia also has a pipeline of investigational therapies, including other formulations of treprostinil.