Stock Traders Buy High Volume of Put Options on Ardelyx (NASDAQ:ARDX)

Key Points

• Put-option activity surged: Investors bought 10,204 put options on Ardelyx, 270% above the typical volume of 2,756 contracts.
• Analysts remain broadly positive: Ardelyx has a “Moderate Buy” consensus rating and an average price target of $13.90, despite some analysts recently lowering their targets.
• Insiders sold shares while institutions accumulated: Insiders sold 126,059 shares worth approximately $486,588 over the past three months, while hedge funds and institutional investors—including BlackRock—raised positions and collectively own 58.92% of the company.

Ardelyx, Inc. (NASDAQ:ARDX - Get Free Report) was the recipient of unusually large options trading on Monday. Investors bought 10,204 put options on the company. This represents an increase of 270% compared to the typical volume of 2,756 put options.

Analyst Ratings Changes

Several analysts have recently commented on ARDX shares. LADENBURG THALM/SH SH assumed coverage on shares of Ardelyx in a research report on Tuesday, June 16th. They set a "buy" rating and a $16.00 price target on the stock. HC Wainwright reiterated a "buy" rating and issued a $13.00 price objective on shares of Ardelyx in a research report on Friday, August 7th. Piper Sandler cut their target price on Ardelyx from $16.00 to $15.00 and set an "overweight" rating for the company in a research note on Monday, August 17th. Wedbush restated an "outperform" rating and issued a $9.00 target price on shares of Ardelyx in a research report on Tuesday, August 18th. Finally, TD Cowen lowered their price target on Ardelyx from $13.00 to $10.00 and set a "buy" rating for the company in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $13.90.

Insider Activity

In other Ardelyx news, CEO Michael Raab sold 58,574 shares of Ardelyx stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $3.86, for a total transaction of $226,095.64. Following the transaction, the chief executive officer owned 1,619,792 shares of the company's stock, valued at $6,252,397.12. The trade was a 3.49% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider James Brady sold 15,136 shares of the stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $3.86, for a total transaction of $58,424.96. Following the completion of the sale, the insider directly owned 245,930 shares of the company's stock, valued at $949,289.80. This trade represents a 5.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 126,059 shares of company stock worth $486,588. Corporate insiders own 5.30% of the company's stock.

Institutional Trading of Ardelyx

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Knott David M Jr acquired a new position in shares of Ardelyx during the 1st quarter worth $1,240,000. AIGH Capital Management LLC acquired a new stake in Ardelyx in the 2nd quarter valued at about $16,320,000. Rubric Capital Management LP purchased a new position in Ardelyx during the 1st quarter valued at about $11,147,000. Clay Northam Wealth Management LLC acquired a new position in Ardelyx during the second quarter worth about $1,704,000. Finally, BlackRock Inc. acquired a new position in Ardelyx during the second quarter worth about $119,874,000. Hedge funds and other institutional investors own 58.92% of the company's stock.

Ardelyx Stock Up 0.1%

Ardelyx stock traded up $0.01 during midday trading on Monday, reaching $3.58. The company's stock had a trading volume of 1,628,684 shares, compared to its average volume of 4,243,505. The company has a market cap of $893.34 million, a P/E ratio of -16.30 and a beta of 0.70. The company has a quick ratio of 3.15, a current ratio of 3.34 and a debt-to-equity ratio of 1.69. The business has a 50-day simple moving average of $4.46 and a 200-day simple moving average of $5.46. Ardelyx has a fifty-two week low of $3.53 and a fifty-two week high of $8.40.

Ardelyx (NASDAQ:ARDX - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The biopharmaceutical company reported ($0.07) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.02). The company had revenue of $120.88 million for the quarter, compared to analysts' expectations of $121.03 million. Ardelyx had a negative return on equity of 36.00% and a negative net margin of 12.35%.The firm's quarterly revenue was up 34.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.08) EPS. On average, research analysts expect that Ardelyx will post -0.2 earnings per share 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 lead product candidates and marketed medicines are designed to address disorders involving the regulation of phosphate and other substances in the digestive system.

Ardelyx markets XPHOZAH (tenapanor) in the United States for reducing serum phosphorus in adults with chronic kidney disease on dialysis. Tenapanor works locally in the gastrointestinal tract by inhibiting the sodium/hydrogen exchanger 3, thereby reducing intestinal phosphate absorption.

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