Positioning no disclosures inside 60 days, left as found
Options no verdict drawn today, left as found
Ethical does not pass the values gate
Price302.74 USD
Fair value303.78
Ethical score70.0/100
Our investment reviews on this name
2026-10-02Read Accumulation302.74+0.0% to today ✓
2026-09-04Read Markdown281.72+7.5% to today
2026-07-02Read Markup255.54+18.5% to today ✓
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Ligand Pharmaceuticals Incorporated holds its Accumulation at $302.74. Consolidating, no directional conviction, held for 1 days.
As held on the ledger · 2026-10-01
Phase
Accumulation
Quantitative state
Consolidating, no directional conviction, held for 1 days
Price at the screen
$302.74
Valuation
31.21 trailing · 25.37 forward price to earnings
Values screen
FAIL· score 70.0
Beta
0.98
The Workings
Five Screens, Shown in Full
Does not pass. Revenue purity
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
28.93%
Below 33%
Interest-bearing debt is just 28.9% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
12.62%
Below 33%
Cash held in interest-bearing accounts and securities is 12.6% of assets, under the one-third limit.
Pass
Receivables
15.03%
Below 49%
Money owed to the company is 15.0% of assets, under the 49% limit.
Pass
Revenue purity
5.09%
Below 5%
5.1% of revenue comes from non-compliant sources, over the 5% line.
Fail
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Ligand Pharmaceuticals clears the business-activity screen, and its debt is inside the line. Where it falls short is income purity: around 5% of its income right now is interest earned on a large cash position, against a roughly 5% ceiling, so it does not pass. That reflects what it earns today, not the business itself, and it could clear the screen if its operating revenue grows and the interest share falls.
Read as at 2026-10-04. It updates when the underlying figures move, and past reads are kept below.
Fair value range in USD, drawn from the 2026-10-01 screen. The gold marker is the market price at the same screen. A 0.3% margin of safety to the base estimate.
Third-party analyst targets: 12 covering, consensus Strong Buy. The average target sits +14% from the screen price.
Reading the gap · Our more conservative model reads it as roughly fairly valued here, while the Street is more bullish: a quality-at-a-fair-price name rather than a deep-value one.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-10-01 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Biotech licensor offers strong margins yet no margin of safety
Picture a company that simply licenses drug formulas rather than running full clinical trials. Ligand does exactly that and posts a 56 percent profit margin with 14 percent revenue growth and 17 percent return on equity. Those numbers look solid on paper yet our fair value sits at 281.87 while the shares trade at 303.39, giving a negative margin of safety and a clear none rating on opportunity.
The business model keeps overhead low by partnering assets such as EVOMELA and KYPROLIS into approved treatments worldwide. Forward earnings sit at 26.3 times and ten analysts still carry a strong buy stance with a 310 median target. Ethical screening clears the name without issue, which removes one common reason to step aside.
Valuation risk remains the decisive factor here. A modest premium to fair value can quickly reverse in a sector where royalty streams face patent cliffs and partner concentration. The absence of any moat rating adds further uncertainty around durability. Analysis, not advice.
The risks · The things to watch: as a biotechnology name, trial and regulatory outcomes can move it sharply either way.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
LGND trades on Nasdaq. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The framework has shifted from markdown to accumulation since the last review. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved up 7.5% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 20% above its long-term trend line with momentum reading overbought. Over the past year the shares are up 120%. Our forward projection puts the odds of a 10% gain over the next month near 38%. The street (10 analysts) rates it strong buy, with a mean price target of $272. Insiders have been net sellers over the past quarter.
2026-09-04Markdown · changed$281.72-2.0%Entry 5
The framework has shifted from markup to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 2.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 20% above its long-term trend line with momentum reading overbought. Over the past year the shares are up 120%. Our forward projection puts the odds of a 10% gain over the next month near 38%. The street (10 analysts) rates it strong buy, with a mean price target of $272. Insiders have been net sellers over the past quarter.
2026-08-04Markup$287.54+12.5%Entry 4
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 12.5% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 20% above its long-term trend line with momentum reading overbought. Over the past year the shares are up 120%. Our forward projection puts the odds of a 10% gain over the next month near 38%. The street (10 analysts) rates it strong buy, with a mean price target of $272.
2026-07-18Markup$255.54+0.0%Entry 3
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 20% above its long-term trend line with momentum reading overbought. Over the past year the shares are up 120%. Our forward projection puts the odds of a 10% gain over the next month near 38%. The street (10 analysts) rates it strong buy, with a mean price target of $272.
2026-07-03Markup$255.54+0.0%Entry 2
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
2026-07-02Markup$255.54Entry 1
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
