Ironwood Pharmaceuticals (NASDAQ:IRWD) Shares Down 6% - Here's What Happened

Key Points

• Shares fell about 6% to roughly $4.16 intraday, trading on a volume that was about 95% below the stock's average session volume.
• Earnings and revenue missed expectations: Ironwood reported EPS of ($0.01) vs. a $0.02 consensus and revenue of $47.71M versus $86.10M expected, a sizable quarterly shortfall.
• Insider sale and mixed market view: Director Alexander J. Denner sold 6,730,800 shares for about $20.5M (insiders own 12.7%), while analysts remain mixed with a consensus "Hold" and an average target of $6.23 as several institutions increased stakes.

Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD - Get Free Report) fell 6% on Tuesday . The company traded as low as $4.13 and last traded at $4.1550. 226,528 shares traded hands during mid-day trading, a decline of 95% from the average session volume of 4,132,383 shares. The stock had previously closed at $4.42.

Analysts Set New Price Targets

A number of brokerages recently weighed in on IRWD. Craig Hallum upgraded shares of Ironwood Pharmaceuticals from a "hold" rating to a "strong-buy" rating in a report on Monday, January 5th. Jefferies Financial Group reissued a "hold" rating and issued a $3.70 target price on shares of Ironwood Pharmaceuticals in a research report on Thursday, February 26th. Wall Street Zen lowered Ironwood Pharmaceuticals from a "strong-buy" rating to a "buy" rating in a research report on Saturday, March 7th. Zacks Research lowered Ironwood Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, February 25th. Finally, Wells Fargo & Company boosted their target price on Ironwood Pharmaceuticals from $3.00 to $5.00 and gave the stock an "equal weight" rating in a research report on Monday, January 5th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $6.23.

Ironwood Pharmaceuticals Trading Down 7.4%

The firm has a market capitalization of $667.73 million, a PE ratio of 31.50 and a beta of 0.17. The business's 50 day simple moving average is $3.74 and its two-hundred day simple moving average is $3.43.

Ironwood Pharmaceuticals (NASDAQ:IRWD - Get Free Report) last announced its earnings results on Wednesday, February 25th. The biotechnology company reported ($0.01) earnings per share for the quarter, missing analysts' consensus estimates of $0.02 by ($0.03). Ironwood Pharmaceuticals had a net margin of 8.11% and a negative return on equity of 13.72%. The company had revenue of $47.71 million for the quarter, compared to analysts' expectations of $86.10 million. As a group, equities research analysts anticipate that Ironwood Pharmaceuticals, Inc. will post 0.98 earnings per share for the current year.

Insider Activity at Ironwood Pharmaceuticals

In other news, Director Alexander J. Denner sold 6,730,800 shares of the company's stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $3.05, for a total value of $20,528,940.00. Following the completion of the sale, the director directly owned 9,188,635 shares in the company, valued at $28,025,336.75. This represents a 42.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. 12.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On Ironwood Pharmaceuticals

Several hedge funds and other institutional investors have recently modified their holdings of IRWD. AQR Capital Management LLC increased its stake in shares of Ironwood Pharmaceuticals by 535.8% in the 1st quarter. AQR Capital Management LLC now owns 2,523,875 shares of the biotechnology company's stock worth $3,710,000 after purchasing an additional 2,126,889 shares in the last quarter. Millennium Management LLC increased its holdings in Ironwood Pharmaceuticals by 186.6% in the 1st quarter. Millennium Management LLC now owns 6,359,682 shares of the biotechnology company's stock worth $9,349,000 after acquiring an additional 4,140,439 shares in the last quarter. Dynamic Technology Lab Private Ltd purchased a new stake in Ironwood Pharmaceuticals in the 1st quarter worth approximately $57,000. Goldman Sachs Group Inc. increased its holdings in Ironwood Pharmaceuticals by 72.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,575,416 shares of the biotechnology company's stock worth $2,316,000 after acquiring an additional 660,144 shares in the last quarter. Finally, Jane Street Group LLC increased its holdings in Ironwood Pharmaceuticals by 740.5% in the 1st quarter. Jane Street Group LLC now owns 3,510,117 shares of the biotechnology company's stock worth $5,160,000 after acquiring an additional 3,092,475 shares in the last quarter.

About Ironwood Pharmaceuticals

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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