Benzinga - by Benzinga Insights, Benzinga Staff Writer.
On May 15, a recent SEC filing unveiled that Matthew E Korenberg, President & Chief Operating at Ligand Pharmaceuticals (NASDAQ:LGND) made an insider sell.
What Happened: Korenberg's recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled the sale of 17,598 shares of Ligand Pharmaceuticals. The total transaction value is $1,495,740.
Tracking the Thursday's morning session, Ligand Pharmaceuticals shares are trading at $85.77, showing a down of 0.0%.
All You Need to Know About Ligand Pharmaceuticals Ligand Pharmaceuticals Inc is a biopharmaceutical company focused on developing and acquiring technologies that aid in creating medicine. The company has partnerships and license agreements with various pharmaceutical and biotechnology companies. Ligand's business model is based on drug discovery, early-stage drug development, product reformulation, and partnerships. The company's revenue consists of three primary elements: royalties from commercialized products, license and milestone payments, and sale of its trademarked Captisol material.
Ligand Pharmaceuticals: A Financial Overview Revenue Growth: Ligand Pharmaceuticals's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -29.56%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.
Key Profitability Indicators:
- Gross Margin: The company maintains a high gross margin of 90.7%, indicating strong cost management and profitability compared to its peers.
- Earnings per Share (EPS): Ligand Pharmaceuticals's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 4.86.
Valuation Metrics: A Closer Look
- Price to Earnings (P/E) Ratio: Ligand Pharmaceuticals's P/E ratio of 16.03 is below the industry average, suggesting the stock may be undervalued.
- Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 12.9, Ligand Pharmaceuticals's stock is perceived as being overvalued in the market, particularly in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 7.87, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
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The Importance of Insider Transactions Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
The Insider's Guide to Important Transaction Codes Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Ligand Pharmaceuticals's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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