Ardelyx Target of Unusually Large Options Trading (NASDAQ:ARDX)

Key Points

• Unusually large options activity: Investors purchased 7,048 ARDX call options on Thursday, roughly a 267% increase versus the average daily volume of 1,919 calls.
• Wall Street sentiment: The consensus rating is a "Moderate Buy" with an average target of $15.70, and multiple firms have recently reiterated Buy/Outperform ratings with targets in the $17–$19 range.
• Recent results and stock move: Ardelyx beat revenue estimates with $125.22M but missed EPS (-$0.01 vs $0.02 expected); the stock rose 4.4% to $6.28 and the company has a market cap of $1.54 billion.

Ardelyx, Inc. (NASDAQ:ARDX - Get Free Report) was the recipient of some unusual options trading on Thursday. Investors acquired 7,048 call options on the stock. This represents an increase of approximately 267% compared to the average daily volume of 1,919 call options.

Wall Street Analyst Weigh In

ARDX has been the subject of a number of recent analyst reports. Raymond James Financial restated a "strong-buy" rating and set a $19.00 target price on shares of Ardelyx in a report on Thursday, January 8th. TD Cowen restated a "buy" rating on shares of Ardelyx in a report on Thursday, January 29th. Wedbush restated an "outperform" rating and set a $19.00 target price on shares of Ardelyx in a report on Monday, February 23rd. Leerink Partners restated an "outperform" rating on shares of Ardelyx in a report on Thursday, March 12th. Finally, BTIG Research restated a "buy" rating and set a $17.00 target price on shares of Ardelyx in a report on Friday, February 20th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $15.70.

Ardelyx Stock Up 4.4%

ARDX traded up $0.27 during trading on Thursday, reaching $6.28. The stock had a trading volume of 3,692,234 shares, compared to its average volume of 4,306,488. The stock's 50 day moving average is $6.03 and its two-hundred day moving average is $6.14. The company has a current ratio of 4.31, a quick ratio of 4.11 and a debt-to-equity ratio of 1.21. The company has a market capitalization of $1.54 billion, a price-to-earnings ratio of -25.10 and a beta of 0.66. Ardelyx has a one year low of $3.21 and a one year high of $8.40.

Ardelyx (NASDAQ:ARDX - Get Free Report) last posted its quarterly earnings data on Thursday, February 19th. The biopharmaceutical company reported ($0.01) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.02 by ($0.03). The firm had revenue of $125.22 million during the quarter, compared to the consensus estimate of $118.04 million. Ardelyx had a negative return on equity of 40.63% and a negative net margin of 15.12%.Ardelyx's revenue for the quarter was up 7.8% compared to the same quarter last year. During the same quarter last year, the company posted $0.02 EPS. As a group, analysts expect that Ardelyx will post 0.01 earnings per share for the current year.

Insider Transactions at Ardelyx

In other Ardelyx news, insider Eric Duane Foster sold 10,439 shares of the business's stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $5.85, for a total value of $61,068.15. Following the completion of the sale, the insider owned 425,970 shares in the company, valued at approximately $2,491,924.50. The trade was a 2.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Joseph James Reilly sold 4,991 shares of the business's stock in a transaction that occurred on Friday, February 20th. The shares were sold at an average price of $5.85, for a total value of $29,197.35. Following the completion of the sale, the insider owned 151,790 shares of the company's stock, valued at $887,971.50. The trade was a 3.18% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 128,604 shares of company stock valued at $751,917. Insiders own 4.80% of the company's stock.

Hedge Funds Weigh In On Ardelyx

Institutional investors have recently added to or reduced their stakes in the company. First Horizon Corp raised its holdings in Ardelyx by 120.4% in the fourth quarter. First Horizon Corp now owns 7,906 shares of the biopharmaceutical company's stock worth $46,000 after purchasing an additional 4,319 shares in the last quarter. SBI Securities Co. Ltd. increased its holdings in shares of Ardelyx by 147.0% during the third quarter. SBI Securities Co. Ltd. now owns 10,253 shares of the biopharmaceutical company's stock valued at $56,000 after acquiring an additional 6,102 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. bought a new position in shares of Ardelyx during the fourth quarter valued at $60,000. Swiss Life Asset Management Ltd bought a new position in shares of Ardelyx during the third quarter valued at $57,000. Finally, Krilogy Financial LLC bought a new position in shares of Ardelyx during the first quarter valued at $70,000. 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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