Ardelyx Sees Unusually Large Options Volume (NASDAQ:ARDX)

Key Points

• Ardelyx saw unusually heavy put-option activity: Traders purchased 10,002 put options, roughly 250% above the typical volume of 2,854.
• Analyst views were mixed, with price targets lowered by TD Cowen and Citigroup, while the consensus rating remained “Moderate Buy” with an average target of $13.90.
• Ardelyx shares rose 0.2% to $3.31, near their 52-week low of $3.22, after the company reported a quarterly EPS loss of $0.07 that missed estimates and revenue of $120.88 million.

Ardelyx, Inc. (NASDAQ:ARDX - Get Free Report) was the recipient of unusually large options trading activity on Wednesday. Traders acquired 10,002 put options on the stock. This represents an increase of approximately 250% compared to the typical volume of 2,854 put options.

Analysts Set New Price Targets

A number of analysts recently commented on the company. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Ardelyx in a research note on Friday, September 25th. TD Cowen cut their target price on Ardelyx from $13.00 to $10.00 and set a "buy" rating for the company in a research report on Friday, August 7th. LADENBURG THALM/SH SH started coverage on Ardelyx in a report on Tuesday, June 16th. They issued a "buy" rating and a $16.00 price objective for the company. Citigroup reduced their price target on Ardelyx from $14.00 to $11.00 and set a "buy" rating on the stock in a report on Monday, August 10th. Finally, Zacks Research lowered Ardelyx from a "hold" rating to a "strong sell" rating in a report on Wednesday, July 22nd. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $13.90.

Insider Activity at Ardelyx

In other news, insider James Brady sold 15,136 shares of Ardelyx stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $3.86, for a total value of $58,424.96. Following the sale, the insider directly owned 245,930 shares in the company, valued at approximately $949,289.80. This trade represents a 5.80% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Michael Raab sold 58,574 shares of the firm's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $3.86, for a total transaction of $226,095.64. Following the sale, the chief executive officer directly owned 1,619,792 shares in the company, valued at approximately $6,252,397.12. The trade was a 3.49% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 126,059 shares of company stock worth $486,588 in the last three months. 5.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Principal Financial Group Inc. raised its holdings in shares of Ardelyx by 22.7% in the 1st quarter. Principal Financial Group Inc. now owns 17,570 shares of the biopharmaceutical company's stock worth $105,000 after purchasing an additional 3,253 shares during the period. NewEdge Advisors LLC boosted its stake in shares of Ardelyx by 30.0% during the 2nd quarter. NewEdge Advisors LLC now owns 23,724 shares of the biopharmaceutical company's stock worth $121,000 after acquiring an additional 5,476 shares during the last quarter. Swiss National Bank boosted its holdings in shares of Ardelyx by 1.2% during the 1st quarter. Swiss National Bank now owns 480,800 shares of the biopharmaceutical company's stock valued at $2,880,000 after purchasing an additional 5,600 shares during the last quarter. Hsbc Holdings PLC raised its position in Ardelyx by 7.0% in the 2nd quarter. Hsbc Holdings PLC now owns 100,550 shares of the biopharmaceutical company's stock worth $509,000 after purchasing an additional 6,619 shares during the period. Finally, Northwestern Mutual Wealth Management Co. bought a new stake in shares of Ardelyx in the 2nd quarter valued at about $35,000. Institutional investors and hedge funds own 58.92% of the company's stock.

Ardelyx Trading Up 0.2%

ARDX stock traded up $0.01 during midday trading on Wednesday, hitting $3.31. 1,069,518 shares of the company's stock were exchanged, compared to its average volume of 4,251,790. Ardelyx has a 1-year low of $3.22 and a 1-year high of $8.40. The business has a 50-day simple moving average of $3.86 and a two-hundred day simple moving average of $5.14. The company has a current ratio of 3.34, a quick ratio of 3.15 and a debt-to-equity ratio of 1.69. The stock has a market capitalization of $826.06 million, a PE ratio of -15.07 and a beta of 0.68.

Ardelyx (NASDAQ:ARDX - Get Free Report) last released its earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.07) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.02). The business had revenue of $120.88 million during the quarter, compared to analyst estimates of $121.03 million. Ardelyx had a negative net margin of 12.35% and a negative return on equity of 36.00%. The business's revenue for the quarter was up 34.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.08) earnings per share. On average, sell-side analysts predict that Ardelyx will post -0.2 EPS for the current fiscal year.

About Ardelyx

Ardelyx, Inc is a biopharmaceutical company focused on developing and commercializing therapies for gastrointestinal and cardiorenal conditions. The company's products are designed to act locally in the gastrointestinal tract to address diseases involving phosphate, sodium, and other electrolytes.

Ardelyx's primary products include XPHOZAH (tenapanor), an oral treatment approved in the United States to reduce intestinal phosphate absorption in adults with chronic kidney disease on dialysis who have hyperphosphatemia, and IBSRELA (tenapanor), an oral therapy approved for the treatment of irritable bowel syndrome with constipation in adults.

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