On August 26, 2024, Matthew Korenberg, President & Chief Operating Officer of Ligand Pharmaceuticals Inc (NASDAQ:LGND), sold 18,858 shares of the company’s stock. The transaction was performed at a price of $105.34 per share, as detailed in the SEC filing. Following this sale, the insider now owns 49,510 shares of Ligand Pharmaceuticals Inc.

Ligand Pharmaceuticals Inc. is engaged in the development and licensing of biopharmaceutical products. The company’s business model focuses primarily on royalty partnerships, in which drug discovery technologies are licensed in exchange for future revenues.

Over the past year, the insider has sold a total of 54,701 shares and made no purchases. This latest transaction continues a trend observed over the past year, when there were 8 insider sales and only 2 insider purchases within the company.

Ligand Pharmaceuticals Inc. shares were trading at $105.34 on the day of the sale, giving the company a market capitalization of approximately $1.93 billion. The company’s price-to-earnings ratio is 45.54, which is higher than both the industry median of 25.26 and the company’s historical median.

According to GF Value, Ligand Pharmaceuticals Inc is significantly overvalued with a price-GF-Value ratio of 2.14. The GF Value of $49.25 is calculated based on historical trading multiples, an adjustment factor from GuruFocus and future business development estimates from analysts.

This insider sale could be of interest to investors who track insider behavior as an indicator of the company’s future performance and valuation. The ongoing trend of insider selling, coupled with the stock’s valuation metrics, could be of interest to market observers and potential investors.

This article created by GuruFocus is intended to provide general insights and does not constitute tailored financial advice. Our commentary is based on historical data and analyst forecasts, uses an unbiased methodology and is not intended to serve as specific investment advice. It does not contain a recommendation to buy or sell any stock and does not take into account any individual investment objectives or financial circumstances. Our goal is to provide long-term, fundamental, data-driven analysis. Note that our analysis may not include the most recent, price-sensitive company announcements or qualitative information. GuruFocus does not hold a position in any stocks mentioned here.

This article first appeared on GuruFocus.