Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) is trending higher in the market today as the company shares are trading 4.96% or 5.64 points down from last closing price of $113.78, reaching $108.14 at last check. Any clue why there is so much of action in the LGND stock? The share price has dropped in 3 of the last 5 days and is down -3.74% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -8,523 shares, and in total 254777 shares valued at $27.552 million were seen changing hands compared with 263300 shares valued at $29.958 million recorded at the previous session. You should take into consideration that a falling volume on lower prices shows the bearish trend but this is an early indication which means that the LGND stock is near its bottom.
Ligand Pharmaceuticals Incorporated (LGND) shares have notched a 3-month decline of about -3.74%, but has still tumbled -16.15% year to date. By comparison, the stock sank -40.74% over the past 12 months, while it jumped 1.05% over the 1 month. The company’s market cap is around $2.23B, with its short interest ratio standing at 19.26%.
In the current trading session for LGND, the stock witnessed two major price actions, it rose to a high of $113.81 and was down as much as $107.15 at one point. The high recorded is very low when compared to their 52-week high which is $98.56. The 52-week high is now at -61.19 distance from current price. Their recent low of $278.62 represents a 9.72% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for LGND is $202.4, this is below the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.
The stock of Ligand Pharmaceuticals Incorporated earned $35.15 per share in the trailing 12 months and has a P/E ratio of 3.08. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 105.27 and lower compared to the sector’s average of 37.46. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. LGND also has P/S multiple of 8.88. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 43.04x.
The company recorded an interesting insider purchase transaction by the Director on Jun 11, 2019. A Securities and Exchanges Commission filings show that Jason Aryeh bought a total of 250 LGND shares that day for a sum of around $26,753. The filings show that the insider stake has now grown to 61,703 shares, currently worth $6,672,562. Ligand Pharmaceuticals Incorporated (LGND) insiders have acquired 11,095 shares in the stock within the past three months. The total insider sales reported to the SEC in that time frame amounted to 2,500 shares. In total, individual insiders traded 13,595 shares in the business, which makes up 4.729% of 287,478 shares that were traded over a year. In the past 12 months, insiders have purchased 75,833 shares while the seller parted with 211,645 shares.
LGND‘s last price was down -29.38% as compared to the average trading price of 50 days recorded at $153.13 while enlarging the period to 200 trading days, the average closing price was $119.2. At present, there are 19.6 million in the total number of common shares owned by the public and among those 18.94 million shares have been available to trade. The percentage of shares being held by the company management was 2.2% while institutions stake was 0%. The company has generated positive returns on equity over the last 12 months (103.3%). It managed to keep its gross profit margin at 96.1% over the past 12 months.
When assessing the full upside of the LGND stock, there is another set of technicals that should be looked into and considered. Its -3.81% decline from moving average of $112.42 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 1.43 to the stock. With the beta been greater than one, this implies that the company shares are theoretically more volatile than the market, something that the traders definitely are keeping an eye on.
Most of the analysts surveyed by Thomson/First Call think quite highly of Ligand Pharmaceuticals Incorporated — 5 analysts rate the stock as a buy with another 0 rating it strong buy. There are 2 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $204.1429 on shares of Ligand Pharmaceuticals Incorporated (NASDAQ:LGND), which corresponds to 89.00% upside potential than its current market price of $108.14 and implies potential despite the recent drop in the price. However, their current target price has fallen from $218 a month ago and is down handily from the consensus target of $224.6667 a quarter ago.
In the last five years, the EPS of the company has been roughly 69.6%. Though the percentage looks encouraging, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 25%. The revenue of the company has risen at an average annualized rate of about 38.7 over the last five years. The company recently recorded a drop of -22.6%, but this figure is rather unattractive.
Let’s briefly check the hedge fund interest towards LGND stock. Marshall Wace North America L.P. added position in the company after it grew 45.6% or 48,802 shares of its common stock. The hedge fund now owns 71,055 shares worth $7,683,888, SEC documents show. Marshall Wace LLP shored up assets in the stock as 16865.17 shares have been purchased, increasing its stake by 233% to 56,161 shares which are currently valued at $6,073,251. In addition, Nordea Investment Management AB recently reported that it now owns 17,747 shares making a total of $1,919,161 based on the recent price. This refelects a change of -4.7% in their ownership.