Ardelyx (NASDAQ:ARDX) Reaches New 12-Month Low - Here's Why

Key Points

• Ardelyx shares fell to a new 52-week low of $3.38, trading down 3.4% with more than 5 million shares changing hands. The stock remains below its 50-day and 200-day moving averages.
• Analysts have lowered price targets, but the consensus remains a “Moderate Buy” with an average target of $13.90. Recent targets range from $10 to $15, while Zacks downgraded the stock to “Strong Sell.”
• The company missed quarterly EPS expectations, reporting a loss of $0.07 per share versus the projected $0.05 loss, although revenue rose 34.3% year over year to $120.88 million. Insiders sold 126,059 shares worth about $486,588 during the last quarter.

Ardelyx, Inc. (NASDAQ:ARDX - Get Free Report) shares hit a new 52-week low during trading on Wednesday . The stock traded as low as $3.38 and last traded at $3.40, with a volume of 5095867 shares changing hands. The stock had previously closed at $3.52.

Analyst Ratings Changes

Several brokerages recently weighed in on ARDX. TD Cowen dropped their target price on Ardelyx from $13.00 to $10.00 and set a "buy" rating on the stock in a research note on Friday, August 7th. Piper Sandler decreased their price target on Ardelyx from $16.00 to $15.00 and set an "overweight" rating for the company in a research note on Monday, August 17th. Zacks Research downgraded Ardelyx from a "hold" rating to a "strong sell" rating in a report on Wednesday, July 22nd. Citigroup dropped their price target on Ardelyx from $14.00 to $11.00 and set a "buy" rating on the stock in a research note on Monday, August 10th. Finally, BTIG Research cut their price objective on shares of Ardelyx from $17.00 to $14.00 and set a "buy" rating on the stock in a report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $13.90.

Ardelyx Trading Down 3.4%

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 50-day simple moving average of $4.39 and a 200 day simple moving average of $5.42. The company has a market cap of $847.25 million, a price-to-earnings ratio of -15.45 and a beta of 0.70.

Ardelyx (NASDAQ:ARDX - Get Free Report) last announced 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 firm had revenue of $120.88 million during the quarter, compared to analysts' expectations of $121.03 million. During the same quarter in the previous year, the business earned ($0.08) earnings per share. The company's revenue for the quarter was up 34.3% compared to the same quarter last year. As a group, equities research analysts predict that Ardelyx, Inc. will post -0.2 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider James Brady sold 15,136 shares of the company'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 $58,424.96. Following the sale, the insider directly owned 245,930 shares of the company's stock, valued at $949,289.80. This represents a 5.80% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Michael Raab sold 58,574 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 transaction of $226,095.64. Following the completion of the sale, 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 126,059 shares of company stock worth $486,588 in the last quarter. 5.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ARDX. BlackRock Inc. acquired a new stake in Ardelyx during the 2nd quarter worth about $119,874,000. Jupiter Topco LLC acquired a new position in shares of Ardelyx in the 2nd quarter valued at about $27,043,000. AIGH Capital Management LLC acquired a new position in shares of Ardelyx in the 2nd quarter valued at about $16,320,000. Bank of America Corp DE boosted its stake in shares of Ardelyx by 5.8% in the first quarter. Bank of America Corp DE now owns 2,336,994 shares of the biopharmaceutical company's stock worth $13,999,000 after buying an additional 128,301 shares during the last quarter. Finally, Eversept Partners LP boosted its stake in shares of Ardelyx by 30.0% in the first quarter. Eversept Partners LP now owns 2,229,446 shares of the biopharmaceutical company's stock worth $13,354,000 after buying an additional 514,317 shares during the last quarter. 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 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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