Ligand Pharmaceuticals (LGND) CFO exercises options and sells 31,641 shares under 10b5-1 plan
Rhea-AI Filing Summary
LIGAND PHARMACEUTICALS INC’s Chief Financial Officer, Octavio Espinoza, reported option-related transactions and a share sale on August 12, 2026. He exercised stock options covering 31,641 shares of common stock at exercise prices between $52.84 and $70.04 per share, then sold 31,641 shares of common stock at a weighted-average price of $292.065 per share in multiple transactions. The company notes these trades were made under a written Rule 10b5-1 trading plan adopted on May 13, 2026.
Positive
- None.
Negative
- None.
Insider Trade Summary 10b5-1
Exercise and Sale: 31,641 shares ($7.44M approx. pre-tax spread)
Exercise and Sale
11 txns
Insider
Espinoza Octavio
Role
Chief Financial Officer
Sold
31,641 shs ($9.24M)
Approx. gross sale proceeds
$9.24M
Approx. exercise cost
$1.80M
Approx. pre-tax spread
$7.44M
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Employee Stock Option (right to buy) F1, F3 | 2,869 | $0.00 | $0.00 |
| Exercise | Employee Stock Option (right to buy) F1, F4 | 7,171 | $0.00 | $0.00 |
| Exercise | Non-Qualified Stock Option (right to buy) F1, F5 | 16,179 | $0.00 | $0.00 |
| Exercise | Non-Qualified Stock Option (right to buy) F1, F6 | 3,348 | $0.00 | $0.00 |
| Exercise | Non-Qualified Stock Option (right to buy) F1, F7 | 2,074 | $0.00 | $0.00 |
| Exercise | Common Stock F1 | 16,179 | $52.84 | $855K |
| Exercise | Common Stock F1 | 2,074 | $70.04 | $145K |
| Exercise | Common Stock F1 | 2,869 | $55.75 | $160K |
| Exercise | Common Stock F1 | 7,171 | $57.22 | $410K |
| Exercise | Common Stock F1 | 3,348 | $68.74 | $230K |
| Sale | Common Stock F1, F2 | 31,641 | $292.065 | $9.24M |
Holdings After Transaction:
Employee Stock Option (right to buy) — 0 shares (Direct);
Non-Qualified Stock Option (right to buy) — 0 shares (Direct);
Common Stock — 27,696 shares (Direct)
Footnotes (7)
- F1. The transactions reported on this Form 4 were made pursuant to a written trading plan adopted by the Reporting Person on May 13, 2026, in accordance with Rule 10b5-1.
- F2. The price reported in Column 4 is a weighted-average price. These shares were sold in multiple transactions at prices ranging from $292.0098 to $292.0846. The Reporting Person undertakes to provide the Registrant, any securityholder of the Registrant, or the Staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the range set forth in this footnote.
- F3. The original grant of 4,039 stock options vests and is exercisable as to approximately 15% of the underlying shares on August 13, 2020, approximately 70% of the underlying shares in 28 substantially equal monthly installments beginning on September 13, 2020, and approximately 15% of the underlying shares in 12 substantially equal monthly installments thereafter.
- F4. The stock option vests and is exercisable as to approximately 14% of the underlying shares on April 1, 2021, approximately 73% of the underlying shares in 32 substantially equal monthly installments on May 5, 2021, and approximately 13% of the underlying shares in 10 substantially equal monthly installments thereafter.
- F5. The stock option vests and is exercisable as to approximately 14% of the underlying shares on August 5, 2022, approximately 64% of the underlying shares in 28 substantially equal monthly installments beginning on September 5, 2022, and approximately 22% of the underlying shares in 12 substantially equal monthly installments thereafter.
- F6. The stock option vests and is exercisable as to approximately 13% of the underlying shares on August 11, 2019, and the remaining of the underlying shares in 40 substantially equal monthly installments thereafter.
- F7. The stock option vests and is exercisable as to approximately 16% of the underlying shares on August 1, 2019, approximately 74% of the underlying shares in 28 substantially equal monthly installments beginning on September 1, 2019, and approximately 10% of the underlying shares in 12 substantially equal monthly installments thereafter.
Key Figures
Shares sold: 31,641 shares
Weighted-average sale price: $292.065 per share
Options exercised: 31,641 shares
+2 more
5 metrics
Shares sold
31,641 shares
Common stock sale on August 12, 2026
Weighted-average sale price
$292.065 per share
Common stock sold in multiple transactions
Options exercised
31,641 shares
Total underlying common shares from option exercises
Option exercise prices
$52.84–$70.04 per share
Employee and non-qualified stock options exercised
Rule 10b5-1 plan adoption date
May 13, 2026
Plan governing reported transactions
Key Terms
Rule 10b5-1, Non-Qualified Stock Option, Employee Stock Option, weighted-average price, +1 more
5 terms
Rule 10b5-1 regulatory
"plan adopted by the Reporting Person on May 13, 2026, in accordance with Rule 10b5-1"
Rule 10b5-1 is a regulation that allows company insiders to buy or sell their shares at predetermined times, even if they have access to non-public information. It acts like setting a schedule in advance for transactions, helping prevent accusations of unfair trading. This rule provides a way for insiders to plan trades transparently, giving investors confidence that these transactions are not based on hidden information.
Non-Qualified Stock Option financial
"security_title: "Non-Qualified Stock Option (right to buy)""
A non-qualified stock option (NSO) is a contract that lets an employee or service provider buy company shares at a fixed price for a set period, like a voucher to purchase stock later at today’s price. It matters to investors because exercising NSOs creates ordinary income for the holder and can increase share count, affecting a company’s earnings and ownership mix; think of it as a future sale that can dilute existing shareholders and has immediate tax consequences for the recipient.
Employee Stock Option financial
"security_title: "Employee Stock Option (right to buy)""
An employee stock option is a promise that lets a worker buy company shares later at a predetermined price, often after they stay for a certain period or meet performance goals — think of it like a coupon that locks in today's price for a future purchase. It matters to investors because options align employees’ incentives with company performance, can increase the number of shares outstanding (dilution) when exercised, and represent a compensation cost that affects reported profits and shareholder value.
weighted-average price financial
"The price reported in Column 4 is a weighted-average price."
Weighted-average price is the average of multiple prices where each price is counted according to its size or importance—larger trades carry more weight than smaller ones, like averaging course grades by credit hours. It matters to investors because it gives a more realistic picture of the true price paid or received, helping assess trade execution, compare performance, calculate cost basis, and value positions more accurately than a simple average.
trading plan regulatory
"transactions reported on this Form 4 were made pursuant to a written trading plan"
A trading plan is a written set of rules an investor follows about what to buy or sell, when to enter and exit positions, and how much risk to accept—like a travel itinerary that maps the route, stops, and budget before a trip. It matters because it helps remove emotional decisions during market swings, enforces discipline, and makes performance easier to review and improve, reducing the chance of costly impulsive moves.
FAQ
What did LGND’s CFO Octavio Espinoza report on this Form 4?
He reported exercising options for 31,641 shares of LIGAND PHARMACEUTICALS common stock and selling 31,641 shares on August 12, 2026. All transactions were related to employee and non-qualified stock options.
What option exercise prices were involved in the LGND CFO’s Form 4?
The reported option exercises covered shares with exercise prices of $52.84, $55.75, $57.22, $68.74, and $70.04 per share. These options were originally granted as employee and non-qualified stock options.
Were the LGND CFO’s transactions done under a Rule 10b5-1 plan?
Yes. The filing states the transactions were made under a written Rule 10b5-1 trading plan adopted by the reporting person on May 13, 2026, indicating the trades were pre-arranged.
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