Ironwood Pharmaceuticals (NASDAQ:IRWD) Stock Price Passes Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Technical breakout: IRWD passed above its 200‑day moving average of $3.27, trading as high as $3.62 and last at $3.60 on volume of 1,050,944 shares, though it remains below the 50‑day MA of $3.82.
• Mixed fundamentals and analyst view: Ironwood missed the quarter (EPS $(0.01) vs $0.02 expected; revenue $47.71M vs $86.10M) and has a consensus Hold rating with a $4.93 target, even as some firms raised targets (Wells Fargo to $5, Citizens Jmp to $10).
• Insider selling: Director Alexander J. Denner sold 6,730,800 shares at an average $3.05 (~$20.5M), cutting his holding by 42.3%; insiders collectively own 12.7% of the stock.

Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD - Get Free Report) passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $3.27 and traded as high as $3.62. Ironwood Pharmaceuticals shares last traded at $3.60, with a volume of 1,050,944 shares changing hands.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports 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 report on Monday, January 5th. Citizens Jmp increased their price target on Ironwood Pharmaceuticals from $8.00 to $10.00 and gave the company a "market outperform" rating in a report on Thursday, February 26th. Wall Street Zen downgraded Ironwood Pharmaceuticals from a "strong-buy" rating to a "buy" rating in a report on Saturday, March 7th. Weiss Ratings reiterated a "sell (d)" rating on shares of Ironwood Pharmaceuticals in a report on Monday, December 29th. Finally, Jefferies Financial Group restated a "hold" rating and set a $3.70 target price on shares of Ironwood Pharmaceuticals in a research note on Thursday, February 26th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $4.93.

Ironwood Pharmaceuticals Stock Up 2.6%

The firm has a 50 day moving average price of $3.82 and a two-hundred day moving average price of $3.27. The company has a market capitalization of $587.02 million, a price-to-earnings ratio of 27.69 and a beta of 0.17.

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 the consensus estimate of $0.02 by ($0.03). The business had revenue of $47.71 million for the quarter, compared to analyst estimates of $86.10 million. Ironwood Pharmaceuticals had a net margin of 8.11% and a negative return on equity of 13.72%. Analysts predict that Ironwood Pharmaceuticals, Inc. will post 0.1 earnings per share for the current year.

Insider Buying and Selling at Ironwood Pharmaceuticals

In other news, Director Alexander J. Denner sold 6,730,800 shares of the firm's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $3.05, for a total transaction 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 trade represents a 42.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 12.70% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Ironwood Pharmaceuticals

Large investors have recently modified their holdings of the stock. Integrated Wealth Concepts LLC lifted its position in shares of 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 purchasing an additional 3,406 shares during the last quarter. LSV Asset Management bought a new position 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 second quarter worth about $32,000. Jump Financial LLC bought a new position in shares of Ironwood Pharmaceuticals during the fourth quarter worth about $34,000. Finally, DGS Capital Management LLC bought a new position in shares of Ironwood Pharmaceuticals during the fourth quarter worth about $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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