Ironwood Pharmaceuticals (NASDAQ:IRWD) Stock Price Down 5.6% - Here's Why

Key Points

• Ironwood's stock fell 5.6% on Friday to about $4.35 (intraday low $4.40) on very light trading—~302,776 shares, roughly a 94% drop versus its average daily volume.
• Analyst coverage is mixed but tilting positive: several firms upgraded their ratings or raised targets (Wells Fargo to $5, Zacks and Craig Hallum to strong-buy, Citizens Jmp set an $8 target), while MarketBeat's consensus is a "Moderate Buy" with a $3.68 price target.
• Institutional buying has increased (Invesco, XTX Topco, Wellington among recent buyers); the company has a market cap of about $645M, a PE of ~24.8, and is trading near its 50‑day SMA ($4.25) and well above its 200‑day SMA ($2.70).

Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD - Get Free Report)'s stock price dropped 5.6% on Friday . The company traded as low as $4.40 and last traded at $4.3540. Approximately 302,776 shares traded hands during trading, a decline of 94% from the average daily volume of 5,422,728 shares. The stock had previously closed at $4.61.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on IRWD shares. Wells Fargo & Company increased their price target on Ironwood Pharmaceuticals from $3.00 to $5.00 and gave the company an "equal weight" rating in a research report on Monday, January 5th. Zacks Research upgraded shares of Ironwood Pharmaceuticals from a "hold" rating to a "strong-buy" rating in a report on Thursday, January 1st. Craig Hallum raised shares of Ironwood Pharmaceuticals from a "hold" rating to a "strong-buy" rating in a research report on Monday, January 5th. Weiss Ratings restated a "sell (d)" rating on shares of Ironwood Pharmaceuticals in a research report on Monday, December 29th. Finally, Citizens Jmp upgraded shares of Ironwood Pharmaceuticals from a "market perform" rating to a "market outperform" rating and set a $8.00 price objective on the stock in a research report on Monday, January 5th. Two research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $3.68.

Ironwood Pharmaceuticals Price Performance

The business has a 50 day simple moving average of $4.25 and a 200 day simple moving average of $2.70. The stock has a market cap of $645.03 million, a PE ratio of 24.78 and a beta of 0.17.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Invesco Ltd. lifted its stake in shares of Ironwood Pharmaceuticals by 22.6% in the 4th quarter. Invesco Ltd. now owns 449,219 shares of the biotechnology company's stock valued at $1,514,000 after purchasing an additional 82,687 shares during the last quarter. Mercer Global Advisors Inc. ADV raised its holdings in Ironwood Pharmaceuticals by 7.8% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 76,951 shares of the biotechnology company's stock valued at $259,000 after buying an additional 5,598 shares in the last quarter. XTX Topco Ltd lifted its position in shares of Ironwood Pharmaceuticals by 290.4% in the fourth quarter. XTX Topco Ltd now owns 43,904 shares of the biotechnology company's stock worth $148,000 after buying an additional 32,657 shares during the last quarter. Virtus Investment Advisers LLC acquired a new stake in shares of Ironwood Pharmaceuticals in the fourth quarter worth about $250,000. Finally, Wellington Management Group LLP bought a new stake in shares of Ironwood Pharmaceuticals during the 4th quarter worth about $1,698,000.

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.

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