Ardelyx (NASDAQ:ARDX) Sets New 52-Week Low - Here's Why

Key Points

• Ardelyx shares fell to a new 52-week low of $3.86, closing around $3.89 versus the prior close of $4.03. The stock remains below its 50-day and 200-day moving averages.
• Analyst opinions are mixed, although the consensus remains “Moderate Buy” with a $13.90 price target. Piper Sandler reduced its target to $15, while Zacks Research downgraded the stock to “Strong Sell.”
• Ardelyx missed quarterly earnings expectations, reporting a $0.07-per-share loss versus the anticipated $0.05 loss, while revenue of $120.88 million was slightly below estimates. Institutional investors and hedge funds own nearly 59% of the company.

Ardelyx, Inc. (NASDAQ:ARDX - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $3.86 and last traded at $3.89, with a volume of 2309235 shares traded. The stock had previously closed at $4.03.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Piper Sandler dropped their price target on Ardelyx from $16.00 to $15.00 and set an "overweight" rating for the company in a research report on Monday. LADENBURG THALM/SH SH assumed coverage on Ardelyx in a research note on Tuesday, June 16th. They issued a "buy" rating and a $16.00 price target on the stock. HC Wainwright reissued a "buy" rating and set a $13.00 price objective on shares of Ardelyx in a research note on Friday, August 7th. Zacks Research downgraded shares of Ardelyx from a "hold" rating to a "strong sell" rating in a research report on Wednesday, July 22nd. Finally, Weiss Ratings lowered Ardelyx from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Monday, June 29th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $13.90.

Ardelyx Stock Performance

The stock has a market capitalization of $966.85 million, a P/E ratio of -17.64 and a beta of 0.70. The stock has a 50 day moving average of $5.12 and a 200 day moving average of $5.85. The company has a debt-to-equity ratio of 1.69, a quick ratio of 3.15 and a current ratio of 3.34.

Ardelyx (NASDAQ:ARDX - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.07) EPS for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.02). The company had revenue of $120.88 million for the quarter, compared to the consensus estimate of $121.03 million. Ardelyx had a negative return on equity of 36.00% and a negative net margin of 12.35%.The firm's quarterly revenue was up 34.3% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.08) earnings per share. Equities analysts predict that Ardelyx, Inc. will post -0.2 EPS for the current year.

Hedge Funds Weigh In On Ardelyx

A number of hedge funds have recently modified their holdings of ARDX. BlackRock Inc. purchased a new position in Ardelyx in the second quarter valued at about $119,874,000. Jupiter Topco LLC purchased a new stake in shares of Ardelyx during the 2nd quarter worth about $27,043,000. AIGH Capital Management LLC acquired a new stake in shares of Ardelyx during the 2nd quarter valued at about $16,320,000. Bank of America Corp DE lifted its holdings in shares of Ardelyx by 88.8% during the 2nd quarter. Bank of America Corp DE now owns 5,527,988 shares of the biopharmaceutical company's stock valued at $21,670,000 after buying an additional 2,600,080 shares during the last quarter. Finally, State Street Corp grew its stake in shares of Ardelyx by 22.6% in the 4th quarter. State Street Corp now owns 11,912,339 shares of the biopharmaceutical company's stock valued at $69,449,000 after buying an additional 2,193,649 shares in the last quarter. 58.92% of the stock is owned by institutional investors and hedge funds.

About Ardelyx

Ardelyx, Inc NASDAQ: ARDX is a clinical‐stage biopharmaceutical company focused on discovering, developing and commercializing targeted small molecule drugs for cardio‐renal and gastrointestinal diseases. The company's lead marketed product, tenapanor (sold under the brand name XPHOZAH in the United States), is approved for the treatment of hyperphosphatemia in patients with chronic kidney disease on dialysis. Ardelyx's proprietary approach targets epithelial transporters in the gastrointestinal tract, offering localized activity with limited systemic exposure.

Beyond tenapanor, Ardelyx's development pipeline includes treatments designed to address other complications in kidney disease and related metabolic disorders.

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