Ardelyx (NASDAQ:ARDX) Reaches New 1-Year Low - Time to Sell?

Key Points

• Ardelyx shares fell to a new 52-week low of $3.33, below its 50-day and 200-day moving averages. Despite the decline, analysts maintained a consensus “Moderate Buy” rating with a $13.90 target price.
• The company’s latest quarterly results missed expectations, reporting an adjusted loss of $0.07 per share versus the $0.05 expected, while revenue reached $120.88 million and increased 34.3% year over year.
• Insiders sold 126,059 shares worth approximately $486,588 over the prior three months, while institutional investors and hedge funds owned 58.92% of the stock.

Ardelyx, Inc. (NASDAQ:ARDX - Get Free Report) hit a new 52-week low on Tuesday. The company traded as low as $3.33 and last traded at $3.3450, with a volume of 1263680 shares trading hands. The stock had previously closed at $3.41.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on ARDX shares. Zacks Research lowered shares of Ardelyx from a "hold" rating to a "strong sell" rating in a research report on Wednesday, July 22nd. Weiss Ratings reiterated a "sell (e+)" rating on shares of Ardelyx in a report on Friday. LADENBURG THALM/SH SH initiated coverage on Ardelyx in a report on Tuesday, June 16th. They set a "buy" rating and a $16.00 target price on the stock. Citigroup cut their target price on Ardelyx from $14.00 to $11.00 and set a "buy" rating for the company in a research report on Monday, August 10th. Finally, Piper Sandler lowered their price target on Ardelyx from $16.00 to $15.00 and set an "overweight" rating on the stock in a research report on Monday, August 17th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $13.90.

Ardelyx Stock Down 1.9%

The business has a 50-day moving average price of $4.07 and a 200-day moving average price of $5.24. The company has a market capitalization of $833.54 million, a price-to-earnings ratio of -15.20 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.

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

Insider Buying and Selling at Ardelyx

In other news, insider Mike Kelliher sold 7,758 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $3.86, for a total value of $29,945.88. Following the completion of the sale, the insider owned 349,660 shares in the company, valued at $1,349,687.60. This represents a 2.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Michael Raab sold 58,574 shares of the firm's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $3.86, for a total value of $226,095.64. Following the completion of the sale, the chief executive officer directly owned 1,619,792 shares of the company's stock, valued at approximately $6,252,397.12. This trade represents a 3.49% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 126,059 shares of company stock valued at $486,588 over the last three months. 5.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Krensavage Asset Management LLC grew its stake in Ardelyx by 6.9% during the 2nd quarter. Krensavage Asset Management LLC now owns 534,523 shares of the biopharmaceutical company's stock valued at $2,726,000 after acquiring an additional 34,523 shares in the last quarter. NewEdge Advisors LLC raised 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 purchasing an additional 5,476 shares in the last quarter. Squarepoint Ops LLC lifted its holdings in shares of Ardelyx by 2.6% during the 2nd quarter. Squarepoint Ops LLC now owns 715,262 shares of the biopharmaceutical company's stock valued at $3,648,000 after buying an additional 17,978 shares during the last quarter. Headlands Technologies LLC grew its stake in shares of Ardelyx by 8.2% in the 2nd quarter. Headlands Technologies LLC now owns 240,796 shares of the biopharmaceutical company's stock valued at $1,228,000 after buying an additional 18,264 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in Ardelyx by 10.4% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 486,412 shares of the biopharmaceutical company's stock worth $2,481,000 after acquiring an additional 45,738 shares in the last quarter. 58.92% of the stock is 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 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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