Assessing Ligand Pharmaceuticals: Insights From 6 Financial Analysts

In the preceding three months, 6 analysts have released ratings for Ligand Pharmaceuticals LGND, presenting a wide array of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Ligand Pharmaceuticals, presenting an average target of $132.83, a high estimate of $144.00, and a low estimate of $95.00. This current average reflects an increase of 0.32% from the previous average price target of $132.40.

Breaking Down Analyst Ratings: A Detailed Examination

The perception of Ligand Pharmaceuticals by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Ligand Pharmaceuticals. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Ligand Pharmaceuticals compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Ligand Pharmaceuticals's stock. This analysis reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Ligand Pharmaceuticals's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

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Discovering Ligand Pharmaceuticals: A Closer Look

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.

Breaking Down Ligand Pharmaceuticals's Financial Performance

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Negative Revenue Trend: Examining Ligand Pharmaceuticals's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -29.56% in revenue growth, reflecting a decrease in 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 excels beyond industry benchmarks, reaching 278.07%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Ligand Pharmaceuticals's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 11.43% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Ligand Pharmaceuticals's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 10.13%, the company showcases efficient use of assets and strong financial health.

Debt Management: Ligand Pharmaceuticals's debt-to-equity ratio is below the industry average. With a ratio of 0.01, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

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.