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

Liquidia Corporation (NASDAQ:LQDA)’s share price crossed above its fifty day moving average during trading on Tuesday after the company announced better than expected quarterly earnings. The stock has a fifty 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.

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

Key Liquidia News

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

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on LQDA shares. Jefferies Financial Group boosted their target price on shares of Liquidia from $55.00 to $62.00 and gave the stock a “buy” rating in a research report on Tuesday. Zacks Research cut shares of Liquidia from a “hold” rating to a “strong sell” rating in a research report on Tuesday, September 22nd. Weiss Ratings raised shares of Liquidia from a “sell (d-)” rating to a “hold (c)” rating in a research report on Tuesday, September 22nd. Piper Sandler set a $129.00 price target on Liquidia in a research note on Friday, July 24th. Finally, BTIG Research boosted their price objective on Liquidia from $70.00 to $87.00 and gave the stock a “buy” rating in a report on Tuesday. Six analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Liquidia currently has an average rating of “Hold” and a consensus target price of $74.31.

Insiders Place Their Bets

In other news, Director Stephen Bloch sold 235,477 shares of the company’s stock in a transaction on Monday, October 5th. The stock was sold at an average price of $27.13, for a total transaction of $6,388,491.01. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Katherine Rielly-Gauvin sold 36,789 shares of the company’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $74.99, for a total transaction of $2,758,807.11. Following the sale, the director directly owned 44,637 shares in the company, valued at approximately $3,347,328.63. This trade represents a 45.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 566,579 shares of company stock valued at $25,746,120 in the last quarter. 25.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in LQDA. Bank of America Corp DE increased its stake in Liquidia by 18.7% in the 1st quarter. Bank of America Corp DE now owns 2,287,792 shares of the company’s stock worth $86,341,000 after acquiring an additional 360,372 shares during the last quarter. Eversept Partners LP lifted its holdings in shares of Liquidia by 33.0% during the 1st quarter. Eversept Partners LP now owns 677,392 shares of the company’s stock worth $25,565,000 after acquiring an additional 167,949 shares during the last quarter. Public Sector Pension Investment Board boosted its holdings in shares of Liquidia by 90.0% in the 3rd quarter. Public Sector Pension Investment Board now owns 458,708 shares of the company’s stock worth $13,881,000 after purchasing an additional 217,332 shares in the last quarter. Pale Fire Capital SE boosted its stake in Liquidia by 2.4% in the first quarter. Pale Fire Capital SE now owns 388,377 shares of the company’s stock worth $14,657,000 after buying an additional 8,985 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Liquidia in the 2nd quarter valued at $29,694,000. Institutional investors own 64.54% of the company’s stock.

Liquidia Trading Up 7.4%

The firm has a market capitalization of $4.60 billion, a PE ratio of 37.52, a price-to-earnings-growth ratio of 0.42 and a beta of 0.40. The firm’s 50-day simple moving average is $49.65 and its 200-day simple moving average is $54.53. The company has a quick ratio of 2.12, a current ratio of 2.31 and a debt-to-equity ratio of 0.63.

About Liquidia

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.