Biopharmaceutical company Liquidia Technologies (LQDA) has seen two corporate insiders pull the trigger on shares in the past week.
Insiders such as corporate officers and board members know the companies they manage inside and out. However, these people in the know are required by law to disclose their trades in order to level the playing field. So, following insider activity can be a helpful strategy for investors.
On April 13, Liquidia Directors Paul Manning and Roger Jeffs purchased shares of the company. While Manning acquired 198,413 shares worth about $500,000, Jeffs acquired 99,206 shares worth about $250,000. (See Liquidia Technologies stock analysis on TipRanks)
On March 30, Wedbush analyst Liana Moussatos reiterated a Hold rating on the stock and reduced the price target to $2 from $4.
Moussatos commented, “Liquidia is focused on leveraging its proprietary PRINT technology to improve the clinical profile of approved active pharmaceutical ingredients (APIs). The lead candidate LIQ861 is a potentially best-in-class dry powder formulation of inhaled treprostinil (reference drug TYVASO) for the treatment of Pulmonary Arterial Hypertension (PAH).”
Furthermore, Moussatos cited the fact that Liquidia is likely losing first-to-market advantage for the PAH oral switch to United Therapeutics’ Tyvaso DPI as the reason for lowering the price target.
Liquidia is seeking a strategic partner for its second product candidate LIQ865, which is being developed for post-operative procedures. It is also evaluating the drug for additional indications.
Moussatos continues to monitor Liquidia’s effort to get LIQ861 “across the regulatory goal-line and progress with early commercial efforts for Liquidia-PAH (RareGen).”
Additionally, based on Liquidia’s fiscal 2020 results, Moussatos notes that the company is streamlining operations, and expects a 40% decrease in total operating costs in 2021-22. Total operating expenses for the company were $59.6 million in fiscal 2020.
Consensus among analysts is that Liquidia is a Moderate Buy, based on 2 Buys and 1 Hold. The average analyst price target of $4.67 implies upside potential of 68%. Shares have dropped about 60.2% over the past year.
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