Investors who take an interest in Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) should definitely note that the CEO & Director, Todd Davis, recently paid US$97.39 per share to buy US$243k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 3.3%.
The Last 12 Months Of Insider Transactions At Ligand Pharmaceuticals
In the last twelve months, the biggest single sale by an insider was when the President & COO, Matthew Korenberg, sold US$1.5m worth of shares at a price of US$85.68 per share. That means that even when the share price was below the current price of US$100, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 17% of Matthew Korenberg's holding.
In total, Ligand Pharmaceuticals insiders sold more than they bought over the last year. The sellers received a price of around US$85.24, on average. It's not too encouraging to see that insiders have sold at below the current price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Ligand Pharmaceuticals better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does Ligand Pharmaceuticals Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Ligand Pharmaceuticals insiders own 2.2% of the company, worth about US$40m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Ligand Pharmaceuticals Insiders?
The stark truth for Ligand Pharmaceuticals is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 3 warning signs for Ligand Pharmaceuticals and we suggest you have a look.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
