Ardelyx (NASDAQ:ARDX) Shares Climb 4% - What's Next?

Key Points

• Ardelyx shares rose 4% to approximately $3.25 in mid-day trading, though trading volume was 39% below the stock’s average daily volume.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $13.90, despite some target reductions and a Zacks downgrade to “Strong Sell.”
• The company’s latest quarter showed 34.3% year-over-year revenue growth to $120.88 million, but Ardelyx missed its EPS estimate and remains unprofitable; insiders have also sold 126,059 shares over the past quarter.

Ardelyx, Inc. (NASDAQ:ARDX - Get Free Report) shares traded up 4% during mid-day trading on Wednesday. The stock traded as high as $3.25 and last traded at $3.2450. Approximately 2,591,013 shares changed hands during mid-day trading, a decline of 39% from the average daily volume of 4,275,936 shares. The stock had previously closed at $3.12.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on ARDX shares. HC Wainwright reaffirmed a "buy" rating and set a $13.00 price target on shares of Ardelyx in a research report on Friday, August 7th. BTIG Research decreased their price objective on Ardelyx from $17.00 to $14.00 and set a "buy" rating for the company in a report on Friday, August 7th. Zacks Research cut Ardelyx from a "hold" rating to a "strong sell" rating in a research note on Wednesday, July 22nd. Wedbush restated an "outperform" rating and issued a $9.00 price objective on shares of Ardelyx in a research note on Tuesday, August 18th. Finally, LADENBURG THALM/SH SH started coverage on shares of Ardelyx in a report on Tuesday, June 16th. They set a "buy" rating and a $16.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, Ardelyx currently has a consensus rating of "Moderate Buy" and a consensus target price of $13.90.

Ardelyx Price Performance

The stock has a market capitalization of $798.65 million, a PE ratio of -14.61 and a beta of 0.68. The business's 50-day moving average price is $3.68 and its 200 day moving average price is $5.06. The company has a debt-to-equity ratio of 1.69, a quick ratio of 3.15 and a current ratio of 3.34.

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 net margin of 12.35% and a negative return on equity of 36.00%. The business had revenue of $120.88 million for the quarter, compared to the consensus estimate of $121.03 million. During the same period in the prior year, the business posted ($0.08) EPS. Ardelyx's quarterly revenue was up 34.3% on a year-over-year basis. Research analysts forecast that Ardelyx, Inc. will post -0.20 earnings per share for the current year.

Insider Transactions at Ardelyx

In other Ardelyx news, insider James Brady sold 15,136 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 $58,424.96. Following the completion of the sale, the insider directly owned 245,930 shares in the company, valued at $949,289.80. The trade was a 5.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 directly owned 349,660 shares of the company's stock, valued at approximately $1,349,687.60. This represents a 2.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 126,059 shares of company stock worth $486,588. 5.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Ardelyx

Hedge funds and other institutional investors have recently modified their holdings of the company. Krensavage Asset Management LLC increased its position in shares of 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 purchasing an additional 34,523 shares during the last quarter. NewEdge Advisors LLC lifted its position in Ardelyx by 30.0% in the 2nd quarter. NewEdge Advisors LLC now owns 23,724 shares of the biopharmaceutical company's stock worth $121,000 after buying an additional 5,476 shares during the last quarter. Squarepoint Ops LLC boosted its stake in Ardelyx by 2.6% in the second quarter. Squarepoint Ops LLC now owns 715,262 shares of the biopharmaceutical company's stock worth $3,648,000 after buying an additional 17,978 shares in the last quarter. Headlands Technologies LLC boosted its stake in Ardelyx by 8.2% in the second quarter. Headlands Technologies LLC now owns 240,796 shares of the biopharmaceutical company's stock worth $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 boosted its stake 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 buying an additional 45,738 shares in the last quarter. 58.92% of the stock is currently owned by hedge funds and other institutional investors.

Ardelyx Company Profile

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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