Chief Medical Officer Of Liquidia Sold 60% Of Their Shares
Liquidia Corporation's Chief Medical Officer, Rajeev Saggar, sold 60% of his shares, netting approximately $1.9 million at an average price of $27.00. This significant sale raises concerns among shareholders, especially as insiders have not purchased shares in the past year. Liquidia insiders own 10% of the company, valued at about $228 million. While insider ownership is generally positive, the lack of recent buying and the recent selling activity may indicate potential risks for the company.
We wouldn't blame Liquidia Corporation (NASDAQ:LQDA) shareholders if they were a little worried about the fact that Rajeev Saggar, the Chief Medical Officer recently netted about US$1.9m selling shares at an average price of US$27.00. That diminished their holding by a very significant 60%, which arguably implies a strong desire to reallocate capital.
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Liquidia Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Director, Paul Manning, for US$19m worth of shares, at about US$29.14 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$26.09. So it may not tell us anything about how insiders feel about the current share price.
Liquidia insiders didn't buy any shares over the last year. 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!
See our latest analysis for Liquidia
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Does Liquidia Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Liquidia insiders own 10% of the company, currently worth about US$228m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Liquidia Insiders?
Insiders haven't bought Liquidia stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about 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. Every company has risks, and we've spotted 1 warning sign for Liquidia you should know about.
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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 of direct interests only, but not derivative transactions or indirect interests.
