What 4 Analyst Ratings Have To Say About Ligand Pharmaceuticals

4 analysts have expressed a variety of opinions on Ligand Pharmaceuticals LGND over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $119.5, with a high estimate of $144.00 and a low estimate of $95.00. This current average has decreased by 6.4% from the previous average price target of $127.67.

Deciphering Analyst Ratings: An In-Depth Analysis

The standing of Ligand Pharmaceuticals among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Ligand Pharmaceuticals. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Ligand Pharmaceuticals compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Ligand Pharmaceuticals's stock. This examination reveals shifts in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Ligand Pharmaceuticals's market standing. Stay informed and make data-driven decisions with our Ratings Table.

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Get to Know Ligand Pharmaceuticals Better

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.

Understanding the Numbers: Ligand Pharmaceuticals's Finances

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Decline in Revenue: Over the 3 months period, Ligand Pharmaceuticals faced challenges, resulting in a decline of approximately -29.56% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Ligand Pharmaceuticals's net margin is impressive, surpassing industry averages. With a net margin of 278.07%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Ligand Pharmaceuticals's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 11.43%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 10.13%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 0.01, Ligand Pharmaceuticals adopts a prudent financial strategy, indicating a balanced approach to debt management.

How Are Analyst Ratings Determined?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.