Investors who take an interest in Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) should definitely note that the CEO & Executive Director, John Higgins, recently paid US$95.45 per share to buy US$177k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.3%.
Ligand Pharmaceuticals Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Sunil Patel, sold US$3.7m worth of shares at a price of US$240 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$95.06. So it may not shed much light on insider confidence at current levels.
In total, Ligand Pharmaceuticals insiders sold more than they bought over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.9% of Ligand Pharmaceuticals shares, worth about US$54m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Ligand Pharmaceuticals Insiders?
It's certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. While recent transactions indicate confidence in Ligand Pharmaceuticals, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. Overall they seem reasonably aligned. Of course, the future is what matters most. So if you are interested in Ligand Pharmaceuticals, you should check out this free report on analyst forecasts for the company.
But note: Ligand Pharmaceuticals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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