Ardelyx (NASDAQ:ARDX) Reaches New 52-Week Low - Here's What Happened

Key Points

• Ardelyx shares reached a new 52-week low, falling to $3.02 and last trading at $3.035, down 2.2% from the prior close.
• Despite the decline, analysts maintained a generally positive outlook: the stock has a consensus “Moderate Buy” rating and an average price target of $13.90, although several firms recently lowered their targets.
• The company missed quarterly EPS expectations, reporting a $0.07 loss per share versus an expected $0.05 loss. Revenue rose 34.3% year over year to $120.88 million, slightly below estimates.

Ardelyx, Inc. (NASDAQ:ARDX - Get Free Report) hit a new 52-week low on Monday. The stock traded as low as $3.02 and last traded at $3.0350, with a volume of 2,589,036 shares. The stock had previously closed at $3.08.

Analyst Ratings Changes

ARDX has been the topic of several recent analyst reports. TD Cowen cut their price objective on shares of Ardelyx from $13.00 to $10.00 and set a "buy" rating on the stock in a report on Friday, August 7th. Wedbush reissued an "outperform" rating and set a $9.00 target price on shares of Ardelyx in a research report on Tuesday, August 18th. Piper Sandler cut their price target on shares of Ardelyx from $16.00 to $15.00 and set an "overweight" rating on the stock in a research note on Monday, August 17th. HC Wainwright reaffirmed a "buy" rating and issued a $13.00 price target on shares of Ardelyx in a report on Friday, August 7th. Finally, 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 note on Monday, August 10th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $13.90.

Ardelyx Stock Down 2.2%

The business has a fifty day moving average price of $3.52 and a two-hundred day moving average price of $4.91. 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 firm has a market capitalization of $750.56 million, a price-to-earnings ratio of -13.66 and a beta of 0.68.

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. On average, equities analysts expect that Ardelyx, Inc. will post -0.20 earnings per share for the current year.

Insider Buying and Selling at Ardelyx

In other Ardelyx news, insider Laura Williams sold 10,739 shares of Ardelyx 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 $41,452.54. Following the completion of the sale, the insider directly owned 367,456 shares in the company, valued at approximately $1,418,380.16. The trade was a 2.84% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Michael Raab sold 58,574 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 transaction of $226,095.64. Following the completion of the sale, the chief executive officer directly owned 1,619,792 shares in the company, valued at $6,252,397.12. This trade represents a 3.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 126,059 shares of company stock worth $486,588. Corporate insiders own 5.30% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Sterling Capital Management LLC grew its holdings in Ardelyx by 842.7% during the third quarter. Sterling Capital Management LLC now owns 8,088 shares of the biopharmaceutical company's stock worth $28,000 after acquiring an additional 7,230 shares during the period. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Ardelyx during the 2nd quarter valued at approximately $35,000. Vontobel Holding Ltd. purchased a new position in shares of Ardelyx during the 3rd quarter valued at approximately $46,000. SCS Capital Management LLC purchased a new stake in Ardelyx during the second quarter worth $52,000. Finally, ADAR1 Capital Management LLC purchased a new stake in Ardelyx during the second quarter worth $56,000. 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 diseases. The company's platform is centered on regulating ion transport in the gut, with the goal of addressing conditions that are inadequately served by existing treatments.

Ardelyx's marketed products include IBSRELA (tenapanor), an oral treatment for adults with irritable bowel syndrome with constipation, and XPHOZAH (tenapanor), a therapy designed to reduce serum phosphorus in adults with chronic kidney disease on dialysis who have an inadequate response to, or are intolerant of, phosphate binders.

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