Ligand Pharmaceuticals (NASDAQ:LGND) Shares Down 9.1% – Should You Sell?

Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) fell 9.1% during mid-day trading on Thursday . The company traded as low as $198.64 and last traded at $201.1590. 131,009 shares were traded during trading, a decline of 38% from the average session 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

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on LGND shares. HC Wainwright upped their price objective on Ligand Pharmaceuticals from $231.00 to $239.00 and gave the stock a “buy” rating in a research report on Tuesday, February 24th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Ligand Pharmaceuticals in a research note on Monday, December 29th. Stifel Nicolaus boosted their price objective on shares of Ligand Pharmaceuticals from $220.00 to $230.00 and gave the stock a “buy” rating in a research report on Wednesday, December 10th. Bank of America started coverage on shares of Ligand Pharmaceuticals in a report on Wednesday. They set a “buy” rating and a $244.00 target price for the company. Finally, Citigroup started coverage on shares of Ligand Pharmaceuticals in a research note on Tuesday, December 9th. They issued a “buy” rating and a $270.00 price target on the stock. Seven equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $245.00.

Ligand Pharmaceuticals Trading Down 6.6%

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 business’s 50-day moving average price is $195.57 and its 200 day moving average price is $188.57. The company has a market cap of $4.12 billion, a P/E ratio of 35.62 and a beta of 1.17.

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

Insiders Place Their Bets

In other news, Director Stephen L. Sabba sold 2,034 shares of the company’s stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $201.50, for a total value of $409,851.00. Following the completion of the transaction, 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CFO Octavio Espinoza sold 13,423 shares of the firm’s stock in a transaction that occurred 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 transaction, the chief financial officer owned 21,662 shares of the company’s stock, valued at approximately $4,458,689.46. The trade was a 38.26% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 23,662 shares of company stock worth $4,817,826 in the last quarter. Insiders own 7.00% of the company’s stock.

Hedge Funds Weigh In On Ligand Pharmaceuticals

Several hedge funds and other institutional investors have recently bought and sold shares of LGND. Royal Bank of Canada raised its position in shares of Ligand Pharmaceuticals by 25.8% in the 1st quarter. Royal Bank of Canada now owns 6,120 shares of the biotechnology company’s stock worth $644,000 after acquiring an additional 1,256 shares in the last quarter. AQR Capital Management LLC acquired a new stake in Ligand Pharmaceuticals during the first quarter worth approximately $344,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Ligand Pharmaceuticals by 8.2% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 10,660 shares of the biotechnology company’s stock worth $1,121,000 after purchasing an additional 809 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Ligand Pharmaceuticals by 9.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 55,327 shares of the biotechnology company’s stock valued at $5,817,000 after buying an additional 4,926 shares during the period. Finally, Jane Street Group LLC boosted its holdings in shares of Ligand Pharmaceuticals by 176.2% during the 1st quarter. Jane Street Group LLC now owns 36,922 shares of the biotechnology company’s stock worth $3,882,000 after buying an additional 23,553 shares in the last quarter. Institutional investors and hedge funds own 91.28% of the company’s stock.

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.