Ironwood Pharmaceuticals (NASDAQ:IRWD) Stock Price Down 5.1% - What's Next?

Key Points

• Ironwood Pharmaceuticals shares fell 5.1% on Tuesday, trading as low as $3.97 and closing near $3.995, with volume far below average.
• Analyst sentiment is mixed but generally constructive: recent upgrades from Zacks Research and Wall Street Zen helped offset a sell rating from Weiss, and the stock’s consensus price target is $6.23.
• The company recently missed EPS estimates by a penny but posted revenue above expectations; meanwhile, insiders have been selling shares, including notable transactions by Julie Mchugh and Ronald Silver.

Shares of Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD - Get Free Report) fell 5.1% during trading on Tuesday . The stock traded as low as $3.97 and last traded at $3.9950. Approximately 897,500 shares were traded during trading, a decline of 74% from the average daily volume of 3,444,271 shares. The stock had previously closed at $4.21.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on IRWD shares. Zacks Research upgraded Ironwood Pharmaceuticals from a "hold" rating to a "strong-buy" rating in a report on Wednesday, July 1st. Wall Street Zen upgraded shares of Ironwood Pharmaceuticals from a "hold" rating to a "strong-buy" rating in a report on Sunday, May 17th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Ironwood Pharmaceuticals in a research note on Monday, April 27th. Two investment analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Ironwood Pharmaceuticals has an average rating of "Moderate Buy" and a consensus price target of $6.23.

Ironwood Pharmaceuticals Price Performance

The stock has a market cap of $651.42 million, a price-to-earnings ratio of 6.69 and a beta of 0.20. The firm has a 50 day simple moving average of $3.88 and a two-hundred day simple moving average of $3.96.

Ironwood Pharmaceuticals (NASDAQ:IRWD - Get Free Report) last posted its earnings results on Thursday, May 7th. The biotechnology company reported $0.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by ($0.01). The company had revenue of $106.51 million for the quarter, compared to analyst estimates of $92.11 million. Ironwood Pharmaceuticals had a negative return on equity of 39.65% and a net margin of 28.26%. On average, sell-side analysts expect that Ironwood Pharmaceuticals, Inc. will post 1.04 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Julie Mchugh sold 21,571 shares of the business's stock in a transaction that occurred 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 transaction, the director 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Ronald Silver sold 127,890 shares of the company's stock in a transaction that occurred on 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 sale, the insider directly owned 313,680 shares of the company's stock, valued at $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. 9.30% of the stock is currently owned by insiders.

Institutional Trading of Ironwood Pharmaceuticals

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