Liquidia Corporation (LQDA) Has 50%+ Upside on Yutrepia Ruling and Buyout Potential

Buckley Capital Advisors, an investment management company, released its second quarter 2026 investor letter. A copy of the letter can be downloaded here. The second quarter delivered strong, broad-based gains across the portfolio, with several of the Fund’s largest positions contributing to performance. Buckley Capital returned 36.0% net during the quarter and 29.7% net year-to-date, outperforming the iShares Russell 2000 Value and iShares Russell 2000. The firm remained disciplined in recycling capital by trimming or exiting investments where the thesis had played out or the risk-reward had weakened. Capital was redirected toward businesses where improving fundamentals, catalysts, and attractive valuations support long-term upside. The firm continues to focus on misunderstood small and mid-cap companies with underappreciated earnings power and believes the portfolio is among its strongest in recent years. In addition, please check the firm’s top five holdings to know its best picks in 2026.

In its second-quarter 2026 investor letter, Buckley Capital highlighted Liquidia Corporation (NASDAQ:LQDA). Liquidia Corporation (NASDAQ:LQDA) is a biopharmaceutical company, focusing on developing therapies for rare cardiopulmonary diseases. On July 27, 2026, Liquidia Corporation (NASDAQ:LQDA) closed at $84.42 per share. One-month return of Liquidia Corporation (NASDAQ:LQDA) was 5.88% and its shares gained 338.32% over the past 52 weeks. Liquidia Corporation (NASDAQ:LQDA) has a market capitalization of $7.50 billion.

Buckley Capital stated the following regarding Liquidia Corporation (NASDAQ:LQDA) in its Q2 2026 investor letter:

“Liquidia Corporation (NASDAQ:LQDA) continues to be the gift that keeps on giving. At our average cost, we bought LQDA at around 1.5x our estimates for 2027 earnings and ~1x 2028 earnings. We originally purchased LQDA at $5.00/share; our average cost is around $9.00, and today the shares trade at around $78. We have continually adjusted our delta-adjusted position size using options as a risk management tool, but LQDA has still been our largest contributor YTD, up over 100% so far this year.

We are still waiting on Judge Andrews’ decision on whether LQDA will be able to sell its Yutrepia product for PH-ILD (pulmonary hypertension associated with interstitial lung disease), a ruling that is likely to occur sometime soon. Despite the stock’s appreciation, we still feel there is 50%+ upside to what an acquirer would pay for the business today. We believe Andrews will rule in LQDA’s favor, and that an acquirer is likely to come in shortly after the ruling.”

Liquidia Corporation (NASDAQ:LQDA) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Liquidia Corporation (NASDAQ:LQDA) at the end of the first quarter which was 44 in the previous quarter. While we acknowledge the potential of Liquidia Corporation (NASDAQ:LQDA) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Liquidia Corporation (NASDAQ:LQDA) and shared Laughing Water Capital’s insights on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.