Ardelyx (NASDAQ:ARDX) Share Price Passes Below Fifty Day Moving Average - Here's What Happened

Key Points

• Ardelyx shares fell below their 50-day moving average on Wednesday, trading as low as $5.26 before last changing hands at $5.43. The stock’s 50-day average is $5.96, and the move came on heavy volume of 3.56 million shares.
• Despite the dip, Wall Street remains mostly bullish on the biotech company. Analysts currently rate the stock a “Moderate Buy,” with a consensus price target of $15.73, though Weiss Ratings recently downgraded it.
• Ardelyx reported mixed quarterly results, missing EPS estimates but beating revenue expectations with $94.47 million in sales, up 27.5% year over year. The company also saw recent insider selling, while institutional investors continue to hold a large stake.

Ardelyx, Inc. (NASDAQ:ARDX - Get Free Report) shares passed below its 50 day moving average during trading on Wednesday . The stock has a 50 day moving average of $5.96 and traded as low as $5.26. Ardelyx shares last traded at $5.43, with a volume of 3,561,974 shares.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on ARDX shares. Williams Trading set a $17.00 price objective on Ardelyx in a research note on Thursday, March 12th. Weiss Ratings downgraded Ardelyx from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Monday, June 29th. LADENBURG THALM/SH SH began coverage on shares of Ardelyx in a research report on Tuesday, June 16th. They set a "buy" rating and a $16.00 target price for the company. Finally, Leerink Partners reiterated an "outperform" rating on shares of Ardelyx in a research note on Thursday, March 12th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $15.73.

Ardelyx Price Performance

The company has a market capitalization of $1.34 billion, a P/E ratio of -23.61 and a beta of 0.61. The company has a current ratio of 3.49, a quick ratio of 3.28 and a debt-to-equity ratio of 1.37. The business's fifty day moving average price is $5.96 and its 200-day moving average price is $6.27.

Ardelyx (NASDAQ:ARDX - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The biopharmaceutical company reported ($0.15) EPS for the quarter, missing the consensus estimate of ($0.13) by ($0.02). The business had revenue of $94.47 million for the quarter, compared to analysts' expectations of $92.78 million. Ardelyx had a negative return on equity of 38.11% and a negative net margin of 13.58%.The company's revenue was up 27.5% compared to the same quarter last year. During the same period last year, the business posted ($0.17) earnings per share. As a group, sell-side analysts predict that Ardelyx, Inc. will post -0.07 earnings per share for the current fiscal year.

Insider Activity at Ardelyx

In other news, insider Eric Duane Foster sold 7,998 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $6.27, for a total transaction of $50,147.46. Following the completion of the sale, the insider owned 417,972 shares of the company's stock, valued at approximately $2,620,684.44. This represents a 1.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Mike Kelliher sold 7,248 shares of the firm's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $6.27, for a total transaction of $45,444.96. Following the completion of the sale, the insider directly owned 357,418 shares in the company, valued at approximately $2,241,010.86. This trade represents a 1.99% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 24,572 shares of company stock valued at $154,066 in the last quarter. Corporate insiders own 5.30% of the company's stock.

Institutional Investors Weigh In On Ardelyx

Large investors have recently modified their holdings of the stock. AIGH Capital Management LLC boosted its position in Ardelyx by 479.3% during the 4th quarter. AIGH Capital Management LLC now owns 1,150,000 shares of the biopharmaceutical company's stock valued at $6,704,000 after acquiring an additional 951,500 shares in the last quarter. Vanguard Group Inc. grew its stake in shares of Ardelyx by 3.3% in the fourth quarter. Vanguard Group Inc. now owns 18,979,483 shares of the biopharmaceutical company's stock worth $110,650,000 after acquiring an additional 610,162 shares during the last quarter. Tudor Investment Corp ET AL bought a new stake in Ardelyx during the 3rd quarter valued at about $688,000. Eversept Partners LP increased its position in shares of Ardelyx by 20.0% during the fourth quarter. Eversept Partners LP now owns 1,715,129 shares of the biopharmaceutical company's stock valued at $9,999,000 after acquiring an additional 285,752 shares in the last quarter. Finally, Hennion & Walsh Asset Management Inc. increased its holdings in shares of Ardelyx by 23.0% in the 4th quarter. Hennion & Walsh Asset Management Inc. now owns 959,540 shares of the biopharmaceutical company's stock worth $5,594,000 after purchasing an additional 179,192 shares in the last quarter. Institutional investors own 58.92% of the company's stock.

Ardelyx Company Profile

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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