LGND has climbed for most of the year, with a strong rally (chart above) in the first half of the year. The On-Balance-Volume (OBV) line has been going up all year, telling us that accumulation has been strong. The 50-day and 200-day moving averages are in a bullish alignment. Traders could consider buying LGND at current levels and add to longs on a close above $110. A $95 sell stop below the market should help to cut down the risk.
This longer chart of LGND suggests that much higher prices could be seen with the positive and rising 40-week moving average. It features a very bullish OBV line and a bullish Moving Average Convergence Divergence oscillator.
TheStreet Ratings team rates LIGAND PHARMACEUTICAL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate LIGAND PHARMACEUTICAL INC (LGND) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- LGND's revenue growth has slightly outpaced the industry average of 13.4%. Since the same quarter one year prior, revenues rose by 18.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.69, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 12.26, which clearly demonstrates the ability to cover short-term cash needs.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, LIGAND PHARMACEUTICAL INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for LIGAND PHARMACEUTICAL INC is currently very high, coming in at 96.58%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 1268.43% significantly outperformed against the industry average.
- You can view the full analysis from the report here: LGND
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.