Ligand Pharmaceuticals (NASDAQ:LGND) Shares Gap Down After Earnings Miss

Key Points

• Earnings miss and market reaction: Ligand reported Q EPS of $1.63 vs. $1.84 expected and revenue of $51.72M vs. $59.10M, and the stock gapped down from $232.55 to open at $205 (last traded ~ $211.97).
• Analysts remain largely positive: Seven analysts rate the stock Buy and one Hold, giving a consensus "Moderate Buy" with an average target of $256.29 and several firms raising price targets into the $275–$289 range despite the miss.
• Insider selling and concentrated ownership: Insiders sold about 35,448 shares (~$7.45M) last quarter; insiders own 7.0% of the company while institutional investors hold 91.28%.

Ligand Pharmaceuticals Incorporated (NASDAQ:LGND - Get Free Report)'s share price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $232.55, but opened at $205.00. Ligand Pharmaceuticals shares last traded at $211.97, with a volume of 88,559 shares changing hands.

The biotechnology company reported $1.63 EPS for the quarter, missing analysts' consensus estimates of $1.84 by ($0.21). The company had revenue of $51.72 million during the quarter, compared to analyst estimates of $59.10 million. Ligand Pharmaceuticals had a return on equity of 13.86% and a net margin of 46.42%.The firm's revenue for the quarter was up 14.1% on a year-over-year basis. During the same quarter last year, the business earned $1.33 earnings per share.

Analyst Ratings Changes

A number of analysts recently commented on the stock. HC Wainwright lifted their target price on shares of Ligand Pharmaceuticals from $243.00 to $289.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. Weiss Ratings raised shares of Ligand Pharmaceuticals from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, May 1st. Citigroup raised their price target on shares of Ligand Pharmaceuticals from $276.00 to $282.00 and gave the stock a "buy" rating in a research report on Wednesday, April 15th. Oppenheimer raised their price target on shares of Ligand Pharmaceuticals from $275.00 to $277.00 and gave the stock an "outperform" rating in a research report on Friday, February 27th. Finally, Bank of America started coverage on shares of Ligand Pharmaceuticals in a research report on Wednesday, March 11th. They set a "buy" rating and a $244.00 price target for the company. Seven analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $256.29.

Insider Activity

In related news, Director John W. Kozarich sold 467 shares of Ligand Pharmaceuticals stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $202.23, for a total value of $94,441.41. Following the sale, the director owned 42,253 shares of the company's stock, valued at approximately $8,544,824.19. This trade represents a 1.09% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Andrew Reardon sold 5,000 shares of Ligand Pharmaceuticals stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $206.35, for a total transaction of $1,031,750.00. Following the completion of the sale, the insider directly owned 36,869 shares in the company, valued at $7,607,918.15. This represents a 11.94% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 35,448 shares of company stock valued at $7,450,977 in the last quarter. Company insiders own 7.00% of the company's stock.

Institutional Investors Weigh In On Ligand Pharmaceuticals

A number of institutional investors have recently added to or reduced their stakes in LGND. Envestnet Asset Management Inc. boosted its stake in Ligand Pharmaceuticals by 16.6% during the 3rd 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 last quarter. Fisher Asset Management LLC boosted its stake in Ligand Pharmaceuticals by 2.7% during the 3rd quarter. Fisher Asset Management LLC now owns 108,926 shares of the biotechnology company's stock worth $19,295,000 after purchasing an additional 2,860 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its stake in Ligand Pharmaceuticals by 59.5% during the 3rd quarter. Massachusetts Financial Services Co. MA now owns 541,845 shares of the biotechnology company's stock worth $95,982,000 after purchasing an additional 202,103 shares during the last quarter. Lisanti Capital Growth LLC boosted its stake in Ligand Pharmaceuticals by 178.0% during the 3rd quarter. Lisanti Capital Growth LLC now owns 29,677 shares of the biotechnology company's stock worth $5,257,000 after purchasing an additional 19,002 shares during the last quarter. Finally, Cibc World Market Inc. boosted its stake in Ligand Pharmaceuticals by 11.7% during the 3rd quarter. Cibc World Market Inc. now owns 59,131 shares of the biotechnology company's stock worth $10,474,000 after purchasing an additional 6,209 shares during the last quarter. Institutional investors and hedge funds own 91.28% of the company's stock.

Ligand Pharmaceuticals Stock Performance

The company has a debt-to-equity ratio of 0.44, a quick ratio of 21.98 and a current ratio of 22.23. The firm's 50 day simple moving average is $211.74 and its 200-day simple moving average is $200.35. The company has a market cap of $4.29 billion, a price-to-earnings ratio of 36.94, a PEG ratio of 1.68 and a beta of 1.20.

About Ligand Pharmaceuticals

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.

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