Ardelyx (NASDAQ:ARDX) Hits New 12-Month Low - Time to Sell?

Key Points

• Ardelyx shares fell to a new 52-week low of $3.05, well below the 50-day moving average of $3.60 and 200-day moving average of $5.01.
• Analyst sentiment remains mixed but leans positive: MarketBeat reports a “Moderate Buy” consensus with an average price target of $13.90, despite two sell ratings and several recent target cuts.
• The company continues to report losses, missing its latest quarterly EPS estimate, while insiders sold 126,059 shares worth about $486,588 over the past three months; institutional investors own 58.92% of the stock.

Ardelyx, Inc. (NASDAQ:ARDX - Get Free Report)'s share price hit a new 52-week low during trading on Monday. The company traded as low as $3.05 and last traded at $3.0950, with a volume of 237,969 shares trading hands. The stock had previously closed at $3.09.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on ARDX shares. Weiss Ratings restated a "sell (e+)" rating on shares of Ardelyx in a research report on Friday, September 25th. TD Cowen decreased their price target on shares of Ardelyx from $13.00 to $10.00 and set a "buy" rating for the company in a research note on Friday, August 7th. Wedbush reiterated an "outperform" rating and set a $9.00 target price on shares of Ardelyx in a report on Tuesday, August 18th. Citigroup cut 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, HC Wainwright reaffirmed a "buy" rating and issued a $13.00 price target on shares of Ardelyx 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 given a Sell rating to the company. According to data from MarketBeat, Ardelyx has a consensus rating of "Moderate Buy" and an average price target of $13.90.

Ardelyx Stock Down 0.2%

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 company has a market capitalization of $768.75 million, a price-to-earnings ratio of -14.02 and a beta of 0.68. The business's 50-day moving average is $3.60 and its 200-day moving average is $5.01.

Ardelyx (NASDAQ:ARDX - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.07) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.02). The firm 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 business's quarterly revenue was up 34.3% on a year-over-year basis. During the same period last year, the company posted ($0.08) earnings per share. As a group, equities analysts predict that Ardelyx, Inc. will post -0.20 earnings per share for the current year.

Insider Transactions at Ardelyx

In other news, insider Eric Foster sold 8,562 shares of the firm's 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 $33,049.32. Following the transaction, the insider owned 409,410 shares in the company, valued at $1,580,322.60. This trade represents a 2.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Michael Raab sold 58,574 shares of the firm's stock in a transaction on Friday, August 21st. The shares were sold at an average price of $3.86, for a total value of $226,095.64. Following the completion of the transaction, the chief executive officer owned 1,619,792 shares in the company, valued at $6,252,397.12. The trade was a 3.49% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new position in Ardelyx during the second quarter worth about $119,874,000. Jupiter Topco LLC acquired a new stake in shares of Ardelyx during the second quarter valued at about $27,043,000. AIGH Capital Management LLC purchased a new stake in shares of Ardelyx in the 2nd quarter valued at approximately $16,320,000. Bank of America Corp DE raised its stake in shares of Ardelyx by 5.8% in the 1st quarter. Bank of America Corp DE now owns 2,336,994 shares of the biopharmaceutical company's stock valued at $13,999,000 after acquiring an additional 128,301 shares during the period. Finally, Eversept Partners LP raised its stake in shares of Ardelyx by 30.0% in the 1st quarter. Eversept Partners LP now owns 2,229,446 shares of the biopharmaceutical company's stock valued at $13,354,000 after acquiring an additional 514,317 shares during the period. 58.92% of the stock is currently owned by institutional investors and hedge funds.

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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