Ligand Pharmaceuticals (NASDAQ:LGND) Trading Down 9.1% – Time to Sell?

Ligand Pharmaceuticals Incorporated (NASDAQ:LGND)’s share price dropped 9.1% during trading on Thursday . The company traded as low as $198.64 and last traded at $201.1590. Approximately 131,009 shares were traded during mid-day trading, a decline of 38% from the average daily volume of 212,723 shares. The stock had previously closed at $221.24.

Key Ligand Pharmaceuticals News

Here are the key news stories impacting Ligand Pharmaceuticals this week:

• Positive Sentiment: Bank of America initiated coverage with a Buy rating and a $244 price target, calling Ligand a “low-risk” way to get exposure to biopharma growth thanks to a diversified, high-margin royalty portfolio — this provides clear upside from current levels. B of A Securities initiates coverage of Ligand Pharmaceuticals (LGND) with buy recommendation
• Positive Sentiment: Media and analyst write-ups (Seeking Alpha, Benzinga, Proactive) emphasize Ligand’s royalty model and diversified portfolio of commercial and development-stage assets as drivers of steady, high-margin earnings — supportive for longer-term multiple expansion. Ligand stock gains new Buy from BofA on high-margin, less risky narrative
• Neutral Sentiment: Aggregator note: analysts’ consensus across outlets is roughly a “Moderate Buy,” reflecting bullish views but not unanimous conviction — useful context for expectations but not a market-moving surprise on its own. Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) Given Average Rating of “Moderate Buy” by Analysts
• Negative Sentiment: Despite favorable coverage, shares have pulled back — likely due to short-term profit-taking after a recent run toward the 12‑month high, and valuation concerns (current P/E ~35). Trading volume is near average, suggesting the move may be driven by traders rather than fresh fundamental news. No link

Analyst Upgrades and Downgrades

Several research analysts have commented on LGND shares. Oppenheimer lifted their price target on Ligand Pharmaceuticals from $275.00 to $277.00 and gave the stock an “outperform” rating in a research report on Friday, February 27th. Stifel Nicolaus raised their price objective on shares of Ligand Pharmaceuticals from $220.00 to $230.00 and gave the stock a “buy” rating in a research note on Wednesday, December 10th. Wall Street Zen cut shares of Ligand Pharmaceuticals from a “buy” rating to a “hold” rating in a research note on Saturday, March 7th. Weiss Ratings restated a “hold (c)” rating on shares of Ligand Pharmaceuticals in a research report on Monday, December 29th. Finally, Citigroup started coverage on Ligand Pharmaceuticals in a research note on Tuesday, December 9th. They issued a “buy” rating and a $270.00 price objective on the stock. Seven research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $245.00.

Ligand Pharmaceuticals Trading Down 6.6%

The company’s fifty day moving average price is $195.57 and its two-hundred day moving average price is $188.57. The company has a market cap of $4.12 billion, a price-to-earnings ratio of 35.62 and a beta of 1.17. The company has a quick ratio of 21.98, a current ratio of 22.23 and a debt-to-equity ratio of 0.44.

Ligand Pharmaceuticals (NASDAQ:LGND) last announced its earnings results on Thursday, February 26th. The biotechnology company reported $2.02 earnings per share for the quarter, topping analysts’ consensus estimates of $1.46 by $0.56. Ligand Pharmaceuticals had a net margin of 46.42% and a return on equity of 13.86%. The company had revenue of $59.67 million during the quarter, compared to the consensus estimate of $55.59 million. During the same period in the previous year, the firm posted $1.27 earnings per share. The company’s revenue was up 39.5% on a year-over-year basis. Ligand Pharmaceuticals has set its FY 2026 guidance at 8.000-9.000 EPS. Research analysts expect that Ligand Pharmaceuticals Incorporated will post 1.73 earnings per share for the current year.

Insider Buying and Selling at Ligand Pharmaceuticals

In related news, CFO Octavio Espinoza sold 13,423 shares of Ligand Pharmaceuticals stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $205.83, for a total transaction of $2,762,856.09. Following the completion of the sale, the chief financial officer directly owned 21,662 shares of the company’s stock, valued at $4,458,689.46. The trade was a 38.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Stephen L. Sabba sold 2,034 shares of the company’s stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $201.50, for a total value of $409,851.00. Following the completion of the sale, the director owned 33,793 shares of the company’s stock, valued at $6,809,289.50. This represents a 5.68% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 23,662 shares of company stock worth $4,817,826. 7.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Ligand Pharmaceuticals

Several institutional investors have recently modified their holdings of LGND. Envestnet Asset Management Inc. raised its holdings in Ligand Pharmaceuticals by 16.6% in the third quarter. Envestnet Asset Management Inc. now owns 31,915 shares of the biotechnology company’s stock worth $5,653,000 after purchasing an additional 4,538 shares during the period. Moody Aldrich Partners LLC acquired a new stake in Ligand Pharmaceuticals during the 3rd quarter worth $4,585,000. Massachusetts Financial Services Co. MA grew its stake in Ligand Pharmaceuticals by 59.5% in the third quarter. Massachusetts Financial Services Co. MA now owns 541,845 shares of the biotechnology company’s stock valued at $95,982,000 after acquiring an additional 202,103 shares during the period. Congress Asset Management Co. increased its holdings in shares of Ligand Pharmaceuticals by 3.0% in the third quarter. Congress Asset Management Co. now owns 667,311 shares of the biotechnology company’s stock worth $118,207,000 after acquiring an additional 19,370 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC raised its position in shares of Ligand Pharmaceuticals by 42.6% during the third quarter. Allspring Global Investments Holdings LLC now owns 108,424 shares of the biotechnology company’s stock worth $19,416,000 after purchasing an additional 32,379 shares during the period. 91.28% of the stock is currently owned by institutional investors and hedge funds.

Ligand Pharmaceuticals Company Profile

Ligand Pharmaceuticals, Inc is a biopharmaceutical company that acquires, develops and out-licenses proprietary technologies designed to help pharmaceutical and biotechnology companies discover and develop novel medicines. Operating primarily through its research services and royalty-generating businesses, Ligand focuses on building a diversified portfolio of technology platforms and partnering with industry leaders to advance therapeutic candidates across multiple disease areas.

The company’s product offerings center around several core platforms.