Ligand Pharmaceuticals (NASDAQ:LGND) Posts Earnings Results, Beats Estimates By $0.40 EPS

Ligand Pharmaceuticals (NASDAQ:LGND) announced its earnings results on Thursday. The biotechnology company reported $2.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.97 by $0.40, FiscalAI reports. The firm had revenue of $63.69 million for the quarter, compared to analyst estimates of $61.30 million. Ligand Pharmaceuticals had a return on equity of 20.06% and a net margin of 67.88%.The business’s revenue was up 33.8% on a year-over-year basis. During the same quarter last year, the firm posted $1.60 EPS. Ligand Pharmaceuticals updated its FY 2026 guidance to 9.000-9.500 EPS.

Here are the key takeaways from Ligand Pharmaceuticals’ conference call:

• Second-quarter results exceeded growth expectations, with total revenue up 34% year over year to $64 million, royalty revenue up 32% to $48 million, and adjusted diluted EPS up 48% to $2.37.
• The recently closed XOMA Royalty acquisition adds more than 120 assets, including seven commercial programs and approximately 14 late-stage clinical programs, and is expected to contribute about $0.50 of adjusted EPS in the second half of 2026 and $1.50 in 2027.
• Ligand raised the low end of 2026 adjusted EPS guidance to $9.00 while maintaining the $9.50 upper end, reaffirmed royalty revenue guidance of $225 million-$250 million, and retains approximately $700 million of deployable capital plus expected operating cash flow exceeding $200 million in 2026.
• Management highlighted a catalyst-rich 18-month period, including up to seven pivotal readouts and potential approvals or label expansions for products such as QTORIN rapamycin, OJEMDA, volixibat, and VABYSMO, while acknowledging the inherent binary risk of clinical development.
• Mirum’s volixibat program in primary sclerosing cholangitis faces a timeline delay after the FDA recommended a Phase III trial; Ligand said the company is pursuing further discussions and now targets a potential submission in the first half of 2027.

Ligand Pharmaceuticals Trading Down 2.3%

Shares of NASDAQ LGND traded down $6.99 during trading on Friday, hitting $293.15. 313,611 shares of the company were exchanged, compared to its average volume of 300,344. The company has a fifty day moving average price of $285.97 and a 200-day moving average price of $235.30. The company has a debt-to-equity ratio of 1.16, a quick ratio of 20.95 and a current ratio of 34.52. The firm has a market capitalization of $5.87 billion, a PE ratio of 31.35, a P/E/G ratio of 2.71 and a beta of 1.13. Ligand Pharmaceuticals has a 12-month low of $137.14 and a 12-month high of $326.63.

Insider Transactions at Ligand Pharmaceuticals

In other news, Director Stephen L. Sabba sold 2,145 shares of the stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $254.00, for a total value of $544,830.00. Following the completion of the sale, the director owned 33,629 shares of the company’s stock, valued at $8,541,766. This represents a 6.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Andrew Reardon sold 5,000 shares of Ligand Pharmaceuticals stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $288.99, for a total transaction of $1,444,950.00. Following the sale, the insider directly owned 41,514 shares in the company, valued at approximately $11,997,130.86. The trade was a 10.75% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 35,231 shares of company stock valued at $9,199,401 in the last three months. 5.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Ligand Pharmaceuticals

Several institutional investors have recently bought and sold shares of LGND. Invesco Ltd. increased its stake in Ligand Pharmaceuticals by 36.5% during the fourth quarter. Invesco Ltd. now owns 516,464 shares of the biotechnology company’s stock worth $97,648,000 after purchasing an additional 138,169 shares during the period. Corient Private Wealth LLC grew its holdings in shares of Ligand Pharmaceuticals by 339.3% in the fourth quarter. Corient Private Wealth LLC now owns 12,388 shares of the biotechnology company’s stock valued at $2,342,000 after purchasing an additional 9,568 shares in the last quarter. Summit Global Investments increased its stake in Ligand Pharmaceuticals by 67.6% during the 4th quarter. Summit Global Investments now owns 2,417 shares of the biotechnology company’s stock worth $457,000 after buying an additional 975 shares during the period. XTX Topco Ltd purchased a new stake in Ligand Pharmaceuticals during the 4th quarter worth approximately $1,459,000. Finally, Voloridge Investment Management LLC lifted its holdings in Ligand Pharmaceuticals by 40.0% during the 4th quarter. Voloridge Investment Management LLC now owns 12,038 shares of the biotechnology company’s stock worth $2,276,000 after buying an additional 3,442 shares in the last quarter. 91.28% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research firms have recently weighed in on LGND. Weiss Ratings downgraded Ligand Pharmaceuticals from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, May 15th. Oppenheimer reaffirmed an “outperform” rating and set a $326.00 target price (up from $285.00) on shares of Ligand Pharmaceuticals in a research note on Monday, August 3rd. Bank of America upped their target price on shares of Ligand Pharmaceuticals from $266.00 to $388.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. HC Wainwright raised their price target on shares of Ligand Pharmaceuticals from $289.00 to $358.00 and gave the stock a “buy” rating in a research note on Thursday. Finally, Royal Bank Of Canada boosted their price target on shares of Ligand Pharmaceuticals from $340.00 to $345.00 and gave the stock an “outperform” rating in a research report on Friday. Seven research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, Ligand Pharmaceuticals currently has a consensus rating of “Moderate Buy” and an average target price of $336.57.

Key Ligand Pharmaceuticals News

Here are the key news stories impacting Ligand Pharmaceuticals this week:

• Positive Sentiment: Ligand reported second-quarter adjusted EPS of $2.37, beating analysts’ $1.95 consensus estimate, while revenue of $63.69 million exceeded expectations of $60.87 million. Revenue increased 33.8% year over year, and EPS rose from $1.60 in the prior-year quarter. Ligand Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The company raised its fiscal 2026 adjusted EPS outlook to $9.00-$9.50, above the $8.13 analyst consensus. The outlook implies continued earnings growth and supports the investment case for Ligand’s royalty-focused business model. Ligand Pharmaceuticals Q2 Adjusted Earnings, Revenue Rise; 2026 Adjusted EPS Outlook Lifted, Revenue Outlook Reaffirmed
• Positive Sentiment: Royal Bank of Canada raised its price target from $340 to $345 and maintained an “outperform” rating. HC Wainwright also lifted its target from $289 to $358 and assigned a “buy” rating, signaling that analysts see further upside. Analyst Price Target Updates
• Neutral Sentiment: Ligand reaffirmed fiscal 2026 revenue guidance of $270 million-$310 million. Although the midpoint is below the $287.5 million consensus estimate, the range remains consistent with the company’s previous outlook and may reflect the timing of royalty and licensing revenue. Ligand Pharmaceuticals 2026 Q2 Results Presentation
• Negative Sentiment: The stock’s decline following the earnings beat suggests investors may have been looking for a larger revenue outlook increase or may be locking in gains after the shares’ strong run. The mixed revenue guidance could be limiting the immediate reaction to the otherwise favorable results. Biopharma Royalty Powerhouse Dips Despite Beat-and-Raise Quarter

Ligand Pharmaceuticals Company Profile

Ligand Pharmaceuticals, Inc is a biopharmaceutical company that acquires, develops and out-licenses proprietary technologies designed to help pharmaceutical and biotechnology companies discover and develop novel medicines. Operating primarily through its research services and royalty-generating businesses, Ligand focuses on building a diversified portfolio of technology platforms and partnering with industry leaders to advance therapeutic candidates across multiple disease areas.

The company’s product offerings center around several core platforms.