Insider Decision: Nancy Ryan Gray Exercises Options At Ligand Pharmaceuticals For $893K

A significant insider transaction involving the exercise of company stock options was reported on November 12, by Nancy Ryan Gray, Director at Ligand Pharmaceuticals (NASDAQ:LGND), as per the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday revealed that Gray, Director at Ligand Pharmaceuticals in the Health Care sector, exercised stock options for 6,571 shares of LGND stock. The exercise price of the options was $69.58 per share.

Currently, Ligand Pharmaceuticals shares are trading down 0.0%, priced at $205.61 during Thursday's morning. This values Gray's 6,571 shares at $893,878.

Unveiling the Story Behind 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.

Key Indicators: Ligand Pharmaceuticals's Financial Health

Revenue Growth: Ligand Pharmaceuticals displayed positive results in 3 months. As of 30 September, 2025, the company achieved a solid revenue growth rate of approximately 122.85%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.

Insights into Profitability:

• Gross Margin: The company sets a benchmark with a high gross margin of 96.71%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Ligand Pharmaceuticals's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 5.99.

Debt Management: With a below-average debt-to-equity ratio of 0.47, Ligand Pharmaceuticals adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 90.58 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 15.95 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 37.84, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future 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.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Why Insider Transactions Are Key in Investment Decisions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Breaking Down the Significance of Transaction Codes

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.