Ardelyx (NASDAQ:ARDX) Trading Down 3.5% - Here's Why

Key Points

• Ardelyx, Inc. shares fell 3.5% on Monday, trading as low as $4.71, with an 82% decrease in trading volume compared to the daily average.
• Analysts have a consensus rating of "Moderate Buy" with a target price of $11.70, despite recommendations from some firms to hold or sell.
• In recent insider trading, CEO Michael Raab sold 45,687 shares at an average price of $5.93, reflecting a decrease in his stake by 2.95%.

Ardelyx, Inc. (NASDAQ:ARDX - Get Free Report) shares dropped 3.5% on Monday . The company traded as low as $4.71 and last traded at $4.77. Approximately 817,525 shares were traded during mid-day trading, a decline of 82% from the average daily volume of 4,470,479 shares. The stock had previously closed at $4.94.

Analyst Ratings Changes

Several equities analysts recently commented on ARDX shares. Raymond James Financial began coverage on Ardelyx in a report on Wednesday, September 3rd. They issued a "strong-buy" rating and a $14.00 target price on the stock. Wall Street Zen raised Ardelyx from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th. Piper Sandler boosted their target price on Ardelyx from $8.00 to $9.00 and gave the stock a "neutral" rating in a research note on Wednesday, August 6th. Wedbush reiterated an "outperform" rating and issued a $14.00 price target (up from $13.00) on shares of Ardelyx in a research note on Tuesday, August 5th. Finally, UBS Group set a $12.00 price objective on shares of Ardelyx in a research report on Tuesday, August 5th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $11.70.

Ardelyx Trading Up 2.3%

The business's 50 day simple moving average is $5.89 and its 200 day simple moving average is $4.80. 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 company has a market capitalization of $1.22 billion, a price-to-earnings ratio of -21.89 and a beta of 0.67.

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

Insider Activity

In related news, CEO Michael Raab sold 45,687 shares of Ardelyx stock in a transaction on Thursday, August 21st. The shares were sold at an average price of $5.93, for a total value of $270,923.91. Following the transaction, the chief executive officer directly owned 1,502,250 shares in the company, valued at $8,908,342.50. This trade represents a 2.95% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Mike Kelliher sold 5,417 shares of the firm's stock in a transaction on Thursday, August 21st. The stock was sold at an average price of $5.93, for a total transaction of $32,122.81. Following the completion of the sale, the insider owned 276,741 shares of the company's stock, valued at $1,641,074.13. This trade represents a 1.92% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 165,551 shares of company stock valued at $996,917. 4.80% of the stock is currently owned by company insiders.

Institutional Trading of Ardelyx

A number of institutional investors have recently modified their holdings of ARDX. Millennium Management LLC boosted its holdings in Ardelyx by 118.2% during the first quarter. Millennium Management LLC now owns 6,465,262 shares of the biopharmaceutical company's stock worth $31,744,000 after buying an additional 3,501,782 shares in the last quarter. Nuveen LLC purchased a new stake in shares of Ardelyx during the 1st quarter worth approximately $16,735,000. Marshall Wace LLP grew its holdings in shares of Ardelyx by 34.2% in the 2nd quarter. Marshall Wace LLP now owns 11,250,652 shares of the biopharmaceutical company's stock worth $44,103,000 after acquiring an additional 2,866,843 shares during the period. Bank of America Corp DE increased its stake in Ardelyx by 88.8% in 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 in the last quarter. Finally, AQR Capital Management LLC increased its stake in Ardelyx by 188.5% in the 1st quarter. AQR Capital Management LLC now owns 1,573,063 shares of the biopharmaceutical company's stock valued at $7,724,000 after purchasing an additional 1,027,814 shares in the last quarter. 58.92% of the stock is currently owned by hedge funds and other institutional investors.

Ardelyx Company Profile

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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