Ardelyx (NASDAQ:ARDX) Hits New 52-Week Low - Time to Sell?

Key Points

• Ardelyx shares fell to a new 52-week low of $3.28, with the stock trading well below its 50-day and 200-day moving averages.
• Analyst sentiment remained broadly positive, with a consensus “Moderate Buy” rating and an average price target of $13.90, despite some firms lowering targets and Zacks downgrading the stock to “Strong Sell.”
• The company missed quarterly earnings expectations, reporting a loss of $0.07 per share versus an estimated loss of $0.05; insiders also sold more than 126,000 shares over the prior three months.

Ardelyx, Inc. (NASDAQ:ARDX - Get Free Report) shares reached a new 52-week low on Monday. The company traded as low as $3.28 and last traded at $3.3250, with a volume of 718706 shares changing hands. The stock had previously closed at $3.34.

Analyst Ratings Changes

A number of research firms recently issued reports on ARDX. Citigroup lowered their price objective on shares of Ardelyx from $14.00 to $11.00 and set a "buy" rating for the company in a research report on Monday, August 10th. TD Cowen decreased their target price on shares of Ardelyx from $13.00 to $10.00 and set a "buy" rating on the stock in a research note on Friday, August 7th. Wedbush reiterated an "outperform" rating and set a $9.00 price target on shares of Ardelyx in a report on Tuesday, August 18th. Zacks Research cut Ardelyx from a "hold" rating to a "strong sell" rating in a research note on Wednesday, July 22nd. Finally, LADENBURG THALM/SH SH started coverage on Ardelyx in a report on Tuesday, June 16th. They set a "buy" rating and a $16.00 price objective on the stock. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $13.90.

Ardelyx Stock Up 1.9%

The firm has a market capitalization of $848.49 million, a price-to-earnings ratio of -15.48 and a beta of 0.68. The company has a debt-to-equity ratio of 1.69, a current ratio of 3.34 and a quick ratio of 3.15. The stock has a fifty day moving average of $3.93 and a two-hundred day moving average of $5.17.

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

Insider Buying and Selling at Ardelyx

In other Ardelyx news, insider Eric Foster sold 8,562 shares of the firm's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $3.86, for a total transaction of $33,049.32. Following the completion of the transaction, the insider owned 409,410 shares in the company, valued at approximately $1,580,322.60. This trade represents a 2.05% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Mike Kelliher sold 7,758 shares of the business'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 transaction of $29,945.88. Following the completion of the transaction, the insider owned 349,660 shares in the company, valued at $1,349,687.60. This trade represents a 2.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 126,059 shares of company stock worth $486,588. Company insiders own 5.30% of the company's stock.

Institutional Trading of Ardelyx

A number of institutional investors have recently bought and sold shares of ARDX. BlackRock Inc. acquired a new stake in shares of Ardelyx during the 2nd quarter worth approximately $119,874,000. Jupiter Topco LLC acquired a new position in shares of Ardelyx during the 2nd quarter valued at $27,043,000. AIGH Capital Management LLC bought a new position in Ardelyx during the second quarter worth $16,320,000. Bank of America Corp DE bought a new position in Ardelyx during the second quarter worth $11,034,000. Finally, Rubric Capital Management LP acquired a new stake in Ardelyx in the first quarter worth $11,147,000. Institutional investors own 58.92% of the company's stock.

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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