Ironwood Pharmaceuticals (NASDAQ:IRWD) Downgraded to Buy Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Ironwood Pharmaceuticals from “strong buy” to “buy,” while the broader analyst consensus remains “hold” with an average price target of $6.23.
• Ironwood shares opened at $4.32, up 1.4%, but the company’s latest quarterly results fell slightly short of expectations, with EPS of $0.31 versus $0.32 expected and revenue of $113.04 million versus $114.84 million forecast.
• Company insiders recently sold significant holdings, including director Julie McHugh’s $80,460 sale and insider Ronald Silver’s $578,063 sale; insiders still own 9.3% of the stock.

Ironwood Pharmaceuticals (NASDAQ:IRWD - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Saturday.

Other equities analysts have also issued reports about the company. Zacks Research lowered Ironwood Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 30th. Weiss Ratings restated a "sell (d+)" rating on shares of Ironwood Pharmaceuticals in a report on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $6.23.

Ironwood Pharmaceuticals Stock Up 1.4%

Shares of IRWD stock opened at $4.32 on Friday. The company's fifty day simple moving average is $3.90 and its two-hundred day simple moving average is $3.97. Ironwood Pharmaceuticals has a 52 week low of $0.81 and a 52 week high of $5.78. The stock has a market cap of $704.41 million, a P/E ratio of 5.61 and a beta of 0.20.

Ironwood Pharmaceuticals (NASDAQ:IRWD - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The biotechnology company reported $0.31 earnings per share for the quarter, missing analysts' consensus estimates of $0.32 by ($0.01). Ironwood Pharmaceuticals had a net margin of 33.36% and a negative return on equity of 58.38%. The firm had revenue of $113.04 million for the quarter, compared to analysts' expectations of $114.84 million. On average, analysts anticipate that Ironwood Pharmaceuticals will post 1.04 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Julie Mchugh sold 21,571 shares of the stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $3.73, for a total value of $80,459.83. Following the completion of the transaction, the director owned 250,749 shares of the company's stock, valued at approximately $935,293.77. This trade represents a 7.92% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Ronald Silver sold 127,890 shares of the stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $4.52, for a total transaction of $578,062.80. Following the completion of the transaction, the insider directly owned 313,680 shares of the company's stock, valued at approximately $1,417,833.60. The trade was a 28.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 9.30% of the company's stock.

Institutional Investors Weigh In On Ironwood Pharmaceuticals

Several large investors have recently added to or reduced their stakes in IRWD. Integrated Wealth Concepts LLC lifted its stake in shares of Ironwood Pharmaceuticals by 21.4% in the 3rd quarter. Integrated Wealth Concepts LLC now owns 19,295 shares of the biotechnology company's stock valued at $25,000 after purchasing an additional 3,406 shares during the last quarter. LSV Asset Management bought a new position in shares of Ironwood Pharmaceuticals during the 4th quarter valued at approximately $30,000. Captrust Financial Advisors purchased a new stake in Ironwood Pharmaceuticals during the 2nd quarter valued at $32,000. Jump Financial LLC purchased a new stake in Ironwood Pharmaceuticals during the 4th quarter valued at $34,000. Finally, DGS Capital Management LLC bought a new stake in Ironwood Pharmaceuticals in the fourth quarter worth $35,000.

Ironwood Pharmaceuticals Company Profile

Ironwood Pharmaceuticals, Inc is a commercial‐stage biotechnology company focused on the discovery, development and commercialization of medicines for gastrointestinal (GI) disorders. The company's flagship product is linaclotide, marketed under the brand name LINZESS in the United States for the treatment of irritable bowel syndrome with constipation (IBS-C) and chronic idiopathic constipation (CIC). Through a strategic collaboration with Allergan (now part of AbbVie), Ironwood also commercializes linaclotide in select ex-U.S.

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