Ironwood Pharmaceuticals (NASDAQ:IRWD) Stock Price Down 12.3% - Here's Why

Key Points

• Shares fell 12.3% on Thursday to about $4.24, with 712,320 shares traded — roughly an 82% decline versus the stock's average session volume.
• Analysts are mixed: Ironwood has a consensus "Hold" rating with an average target of $6.23, following downgrades from Zacks and Wall Street Zen but a $10 target/“market outperform” from Citizens JMP.
• Ironwood reported Q results that met EPS expectations ($0.24) and beat revenue estimates ($106.5M vs. $92.1M), while director Alexander J. Denner sold 6,730,800 shares (~42% of his stake) at about $3.05.

Shares of Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD - Get Free Report) traded down 12.3% on Thursday . The stock traded as low as $4.24 and last traded at $4.2360. 712,320 shares were traded during trading, a decline of 82% from the average session volume of 3,866,305 shares. The stock had previously closed at $4.83.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on IRWD shares. Zacks Research cut Ironwood Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a report on Wednesday, February 25th. Jefferies Financial Group restated a "hold" rating and set a $3.70 target price on shares of Ironwood Pharmaceuticals in a report on Thursday, February 26th. Wall Street Zen lowered Ironwood Pharmaceuticals from a "strong-buy" rating to a "buy" rating in a research note on Saturday, March 7th. Citizens Jmp lifted their price target on shares of Ironwood Pharmaceuticals from $8.00 to $10.00 and gave the company a "market outperform" rating in a report on Thursday, February 26th. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of Ironwood Pharmaceuticals in a report on Monday, April 27th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Ironwood Pharmaceuticals currently has a consensus rating of "Hold" and an average target price of $6.23.

Ironwood Pharmaceuticals Stock Down 13.7%

The firm's 50-day moving average is $3.69 and its 200-day moving average is $3.61. The company has a market cap of $679.96 million, a PE ratio of 32.08 and a beta of 0.29.

Ironwood Pharmaceuticals (NASDAQ:IRWD - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The biotechnology company reported $0.24 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.24. Ironwood Pharmaceuticals had a net margin of 8.11% and a negative return on equity of 13.72%. The company had revenue of $106.51 million for the quarter, compared to analysts' expectations of $92.11 million. As a group, equities research analysts anticipate that Ironwood Pharmaceuticals, Inc. will post 0.88 EPS for the current fiscal year.

Insider Activity

In related news, Director Alexander J. Denner sold 6,730,800 shares of the business's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $3.05, for a total transaction of $20,528,940.00. Following the transaction, the director owned 9,188,635 shares in the company, valued at $28,025,336.75. The trade was a 42.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 12.70% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Ironwood Pharmaceuticals

Hedge funds and other institutional investors have recently bought and sold shares of the business. Integrated Wealth Concepts LLC grew its holdings in Ironwood Pharmaceuticals by 21.4% in the third quarter. Integrated Wealth Concepts LLC now owns 19,295 shares of the biotechnology company's stock worth $25,000 after purchasing an additional 3,406 shares during the period. LSV Asset Management purchased a new stake in Ironwood Pharmaceuticals in the fourth quarter worth about $30,000. Captrust Financial Advisors purchased a new stake in Ironwood Pharmaceuticals in the second quarter worth about $32,000. Jump Financial LLC purchased a new stake in Ironwood Pharmaceuticals in the fourth quarter worth about $34,000. Finally, DGS Capital Management LLC purchased a new stake in Ironwood Pharmaceuticals in the fourth quarter worth about $35,000.

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.

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.