Russell Schundler, the General Counsel of Liquidia Corp (NASDAQ:LQDA), a pharmaceutical preparations company, has recently sold a portion of his stock in the company. The transaction took place on June 3, 2024, where Schundler sold 710 shares at a price of $14.55 per share, totaling over $10,330.
The sale was executed pursuant to a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a specific time or price, providing a defense against accusations of insider trading. The shares sold by Schundler were reportedly to cover taxes associated with the settlement of Restricted Stock Units (RSUs) that were initially granted on January 16, 2022.
Following the sale, Schundler's direct ownership in Liquidia Corp includes 487,661 shares. Additionally, he has an indirect interest in 14,500 shares held by his spouse, over which he disclaims beneficial ownership, except to the extent of his pecuniary interest.
It's noteworthy that on May 31, 2024, Schundler also acquired 2,344 shares through the conversion of RSUs into common stock on a one-for-one basis. These RSUs were part of a grant made on January 16, 2022, where a certain percentage vested on February 28, 2023, and the remaining are set to vest quarterly over three years. As of the filing date, Schundler has 71,615 unvested RSUs from a grant on January 11, 2023, and 110,135 unvested RSUs from a January 11, 2024 grant, in addition to 8,342 shares acquired under the Liquidia Corporation 2020 Employee Stock Purchase Plan.
The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, which provides transparency into the trading activities of a company's insiders, contributing to fair and open markets.
InvestingPro Insights
Amid the recent insider stock transactions at Liquidia Corp (NASDAQ:LQDA), investors may find it valuable to consider the broader financial landscape of the company. According to InvestingPro data, Liquidia's market capitalization stands at $1.09 billion, illustrating a significant presence in the pharmaceutical preparations industry. Despite this, the company's P/E ratio is currently negative at -8.87, reflecting that it is not profitable as of the last twelve months ending Q1 2024.
InvestingPro Tips suggest that analysts are forecasting sales growth for Liquidia in the current year, which could indicate potential for future revenue increases. However, they also note that the company is not expected to be profitable this year. This aligns with the data showing a 5.72% decline in revenue over the last twelve months. The company's high Price / Book ratio of 12.63 further suggests that the stock is trading at a premium relative to its book value.
Despite these challenges, Liquidia has demonstrated significant returns, with a 106.67% price total return over the last six months and a 62.41% return over the last year. This performance may capture the interest of growth-oriented investors. Moreover, the company is operating with a moderate level of debt and has liquid assets that exceed its short-term obligations, which could be seen as a sign of financial stability.
For those considering an investment in Liquidia or seeking to better understand the company's financial health, there are additional InvestingPro Tips available. These tips offer deeper insights into Liquidia's performance and prospects. Subscribers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at Investing.com.
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