In a new SEC filing on December 18, it was revealed that Espinoza, Chief Financial Officer at Ligand Pharmaceuticals (NASDAQ:LGND), executed a significant exercise of company stock options.
What Happened: Espinoza, Chief Financial Officer at Ligand Pharmaceuticals, exercised stock options for 2,381 shares of LGND stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The exercise price of the options was $69.0 per share.
The latest update on Friday morning shows Ligand Pharmaceuticals shares down by 0.0%, trading at $198.41. At this price, Espinoza's 2,381 shares are worth $308,116.
<h3>Delving into Ligand Pharmaceuticals's Background</h3>
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.
<h3>Ligand Pharmaceuticals: A Financial Overview</h3>
Positive Revenue Trend: Examining Ligand Pharmaceuticals's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 122.85% as of 30 September, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Health Care sector.
Key Profitability Indicators:
<ul>
<li>
Gross Margin: The company excels with a remarkable gross margin of 96.71%, indicating superior cost efficiency and profitability compared to its industry peers.
</li>
<li>
Earnings per Share (EPS): Ligand Pharmaceuticals's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 5.99.
</li>
</ul>
Debt Management: Ligand Pharmaceuticals's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.47, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Exploring Valuation Metrics Landscape:
<ul>
<li>
Price to Earnings (P/E) Ratio: Ligand Pharmaceuticals's P/E ratio of 87.41 is below the industry average, suggesting the stock may be undervalued.
</li>
<li>
Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 15.39 suggests overvaluation in the eyes of investors, considering sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With an EV/EBITDA ratio of 36.43, the company's market valuation exceeds industry averages.
</li>
</ul>
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
<h3>Delving Into the Significance of Insider Transactions</h3>
Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
When discussing legal matters, the term &#34;insider&#34; refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
<h3>Transaction Codes Worth Your Attention</h3>
Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Ligand Pharmaceuticals's Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

LGND

Octavio Espinoza, CFO at Ligand Pharmaceuticals, exercised stock options for 2,381 shares at $69.0 per share, worth $308,116. Ligand Pharmaceuticals, a biopharmaceutical company, reported a revenue growth rate of 122.85% as of September 30, 2025, with a gross margin of 96.71% and an EPS of 5.99. The company's debt-to-equity ratio is 0.47. Ligand's P/E ratio is 87.41, P/S ratio is 15.39, and EV/EBITDA ratio is 36.43. Insider transactions, like Espinoza's, are reported in Form 4 filings with the SEC.

Octavio Espinoza At Ligand Pharmaceuticals Capitalizes: Options Exercised, Resulting In $308K