Ironwood Pharmaceuticals (NASDAQ:IRWD) Shares Gap Down - Time to Sell?

Key Points

• Ironwood Pharmaceuticals shares fell 5.7%, opening at $4.17 after closing at $4.32, amid mixed analyst revisions. The stock carries a “Moderate Buy” consensus rating with an average price target of $6.23.
• The company’s latest quarterly results slightly missed expectations, reporting adjusted earnings of $0.31 per share versus $0.32 expected and revenue of $113.04 million versus $114.84 million estimated.
• Insiders recently sold shares, including an insider’s 127,890-share sale that reduced his ownership by nearly 29%, while several major institutional investors significantly increased their positions during the first quarter.

Shares of Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $4.32, but opened at $4.17. Ironwood Pharmaceuticals shares last traded at $4.1440, with a volume of 567,461 shares traded.

Wall Street Analyst Weigh In

Several analysts have weighed in on the stock. Wall Street Zen downgraded shares of Ironwood Pharmaceuticals from a "strong-buy" rating to a "buy" rating in a research report on Saturday. Zacks Research downgraded shares of Ironwood Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 30th. Finally, Weiss Ratings raised shares of Ironwood Pharmaceuticals from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $6.23.

Ironwood Pharmaceuticals Stock Down 5.7%

The stock has a market capitalization of $664.47 million, a PE ratio of 5.29 and a beta of 0.20. The firm has a 50 day moving average price of $3.90 and a 200-day moving average price of $3.96.

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

Insiders Place Their Bets

In other Ironwood Pharmaceuticals news, insider Ronald Silver sold 127,890 shares of the company's stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $4.52, for a total value of $578,062.80. Following the sale, the insider directly owned 313,680 shares of the company's stock, valued at approximately $1,417,833.60. This represents a 28.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Julie Mchugh sold 21,571 shares of the company's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $3.73, for a total transaction of $80,459.83. Following the completion of the sale, the director directly owned 250,749 shares in the company, valued at approximately $935,293.77. The trade was a 7.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 9.30% of the company's stock.

Institutional Trading of Ironwood Pharmaceuticals

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. AQR Capital Management LLC boosted its position in 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 lifted its stake in shares of Ironwood Pharmaceuticals by 186.6% in the 1st quarter. Millennium Management LLC now owns 6,359,682 shares of the biotechnology company's stock valued at $9,349,000 after purchasing an additional 4,140,439 shares during the period. Dynamic Technology Lab Private Ltd acquired a new position in shares of Ironwood Pharmaceuticals in the 1st quarter valued at $57,000. Goldman Sachs Group Inc. boosted its holdings in Ironwood Pharmaceuticals by 72.1% during the first quarter. Goldman Sachs Group Inc. now owns 1,575,416 shares of the biotechnology company's stock worth $2,316,000 after buying an additional 660,144 shares in the last quarter. Finally, Jane Street Group LLC boosted its holdings in Ironwood Pharmaceuticals by 740.5% during the first quarter. Jane Street Group LLC now owns 3,510,117 shares of the biotechnology company's stock worth $5,160,000 after buying an additional 3,092,475 shares in the last quarter.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source