Ardelyx (NASDAQ:ARDX) Share Price Crosses Below 50-Day Moving Average - What's Next?

Key Points

• Ardelyx's stock price has fallen below its 50-day moving average of $5.83, trading as low as $5.16 before closing at $5.20.
• Analysts have varied opinions on Ardelyx, with a consensus rating of "Moderate Buy" and a price target averaging $11.70; several firms including Raymond James and Wedbush have provided strong buy ratings.
• Institutional investors have increased their holdings significantly, with Vanguard Group growing its position by 4.4%, signaling confidence in the company.

Ardelyx, Inc. (NASDAQ:ARDX - Get Free Report)'s stock price passed below its 50-day moving average during trading on Monday . The stock has a 50-day moving average of $5.83 and traded as low as $5.16. Ardelyx shares last traded at $5.20, with a volume of 3,269,303 shares changing hands.

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Raymond James Financial assumed coverage on shares of Ardelyx in a research report on Wednesday, September 3rd. They issued a "strong-buy" rating and a $14.00 target price for the company. UBS Group set a $12.00 price target on shares of Ardelyx in a research report on Tuesday, August 5th. Weiss Ratings restated a "sell (d-)" rating on shares of Ardelyx in a report on Saturday, September 27th. Wedbush reaffirmed an "outperform" rating and set a $14.00 price objective (up from $13.00) on shares of Ardelyx in a research report on Tuesday, August 5th. Finally, Piper Sandler upped their target price on Ardelyx from $8.00 to $9.00 and gave the stock a "neutral" rating in a report on Wednesday, August 6th. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Ardelyx has an average rating of "Moderate Buy" and a consensus price target of $11.70.

Ardelyx Price Performance

The firm has a market cap of $1.25 billion, a P/E ratio of -22.61 and a beta of 0.67. The company has a debt-to-equity ratio of 1.44, a current ratio of 4.30 and a quick ratio of 4.03. The firm's 50 day moving average is $5.83 and its 200 day moving average is $4.80.

Ardelyx (NASDAQ:ARDX - Get Free Report) last announced its earnings results on Monday, August 4th. The biopharmaceutical company reported ($0.08) earnings per share for the quarter, beating analysts' consensus estimates of ($0.13) by $0.05. Ardelyx had a negative net margin of 14.60% and a negative return on equity of 36.57%. The business had revenue of $97.66 million during the quarter, compared to the consensus estimate of $82.69 million. During the same quarter last year, the firm earned ($0.07) earnings per share. The business's revenue for the quarter was up 23.0% on a year-over-year basis. As a group, analysts anticipate that Ardelyx, Inc. will post -0.18 earnings per share for the current year.

Insider Buying and Selling at Ardelyx

In other news, insider Eric Duane Foster sold 15,308 shares of Ardelyx stock in a transaction dated Thursday, August 21st. The stock was sold at an average price of $5.93, for a total value of $90,776.44. Following the completion of the transaction, the insider owned 301,498 shares of the company's stock, valued at $1,787,883.14. The trade was a 4.83% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Justin A. Renz sold 7,037 shares of the stock in a transaction dated Thursday, August 21st. The shares were sold at an average price of $5.93, for a total transaction of $41,729.41. Following the sale, the chief financial officer directly owned 409,052 shares in the company, valued at $2,425,678.36. This trade represents a 1.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 165,551 shares of company stock valued at $996,917 in the last ninety days. Corporate insiders own 4.80% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. grew its holdings in shares of Ardelyx by 4.4% during the first quarter. Vanguard Group Inc. now owns 14,997,234 shares of the biopharmaceutical company's stock valued at $73,636,000 after buying an additional 634,575 shares during the last quarter. Marshall Wace LLP lifted its position in Ardelyx by 34.2% in the 2nd quarter. Marshall Wace LLP now owns 11,250,652 shares of the biopharmaceutical company's stock valued at $44,103,000 after acquiring an additional 2,866,843 shares in the last quarter. Millennium Management LLC boosted its stake in Ardelyx by 118.2% during the 1st quarter. Millennium Management LLC now owns 6,465,262 shares of the biopharmaceutical company's stock valued at $31,744,000 after purchasing an additional 3,501,782 shares during the last quarter. Bank of America Corp DE boosted its stake in 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 purchasing an additional 2,600,080 shares during the last quarter. Finally, Nuveen LLC bought a new stake in shares of Ardelyx in the 1st quarter worth $16,735,000. Institutional investors own 58.92% of the company's stock.

About Ardelyx

Ardelyx, Inc, a biopharmaceutical company, discovers, develops, and commercializes medicines to treat gastrointestinal and cardiorenal therapeutic areas in the United States and internationally. The company's lead product candidate is tenapanor for the treatment of patients with irritable bowel syndrome with constipation.

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