Ardelyx (NASDAQ:ARDX) Shares Gap Up - Still a Buy?

Key Points

• Ardelyx shares jumped at the open, rising from a prior close of $3.03 to $3.41 before trading at $3.195.
• Third-quarter product revenue increased 19% year over year to $125.5 million, and break-even EPS beat expectations; the company maintained its IBSRELA revenue guidance of $350 million–$370 million and reported $285.3 million in cash and investments.
• Growth prospects include early completion of enrollment in an IBSRELA Phase 3 trial, with results expected in the second half of 2027. However, a securities class action alleges the company overstated patient access, while analysts’ consensus rating is “Moderate Buy” with a $13.90 average price target.

Ardelyx, Inc. (NASDAQ:ARDX - Get Free Report)'s share price gapped up before the market opened on Wednesday. The stock had previously closed at $3.03, but opened at $3.41. Ardelyx shares last traded at $3.1950, with a volume of 904,939 shares.

Trending Headlines about Ardelyx

Here are the key news stories impacting Ardelyx this week:

• Positive Sentiment: Third-quarter product revenue rose 19% year over year to $125.5 million, led by IBSRELA revenue growth of 23% to $96.3 million. Ardelyx reported break-even earnings per share, better than analysts’ expected loss, and maintained its full-year IBSRELA revenue guidance of $350 million to $370 million. The company also reported $285.3 million in cash and investments. Ardelyx Q3 financial results
• Positive Sentiment: Ardelyx completed enrollment ahead of schedule in a Phase 3 trial testing IBSRELA for chronic idiopathic constipation. Topline results are expected in the second half of 2027, offering a potential longer-term growth opportunity. Phase 3 trial enrollment update
• Negative Sentiment: Several law firms publicized a pending securities class action and the November 16 lead-plaintiff deadline. The lawsuit alleges Ardelyx overstated the effectiveness of its patient-access strategy while insurance prior-authorization and step-edit requirements slowed new-patient starts for IBSRELA and XPHOZAH. These are allegations, but the litigation and access concerns may weigh on sentiment. Class action deadline and allegations

Analyst Upgrades and Downgrades

Several equities research analysts have commented on ARDX shares. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Ardelyx in a research note on Friday, September 25th. Citigroup reduced their price target on shares of Ardelyx from $14.00 to $11.00 and set a "buy" rating on the stock in a research report on Monday, August 10th. Piper Sandler decreased their price target on shares of Ardelyx from $16.00 to $15.00 and set an "overweight" rating for the company in a report on Monday, August 17th. Zacks Research upgraded shares of Ardelyx from a "strong sell" rating to a "hold" rating in a research report on Friday, October 16th. Finally, TD Cowen lowered their price target on Ardelyx from $13.00 to $10.00 and set a "buy" rating for the company in a report on Friday, August 7th. One 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 stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $13.90.

Ardelyx Stock Performance

The company has a quick ratio of 3.15, a current ratio of 3.34 and a debt-to-equity ratio of 1.69. The firm has a market capitalization of $816.10 million, a P/E ratio of -14.95 and a beta of 0.79. The stock has a fifty day moving average of $3.40 and a 200-day moving average of $5.29.

Ardelyx (NASDAQ:ARDX - Get Free Report) last released its earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.07) 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 firm had revenue of $120.88 million during the quarter, compared to the consensus estimate of $121.03 million. During the same quarter in the previous year, the firm posted ($0.08) EPS. The company's revenue was up 34.3% on a year-over-year basis. On average, research analysts anticipate that Ardelyx, Inc. will post -0.20 EPS for the current year.

Insiders Place Their Bets

In related news, insider Mike Kelliher sold 7,758 shares of the firm'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 $29,945.88. Following the completion of the transaction, the insider owned 349,660 shares of the company's stock, valued at approximately $1,349,687.60. This trade 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 accessible through this hyperlink. Also, insider Laura Williams sold 10,739 shares of Ardelyx stock in a transaction 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 owned 367,456 shares in the company, valued at $1,418,380.16. The trade was a 2.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 126,059 shares of company stock valued at $486,588 over the last 90 days. 5.30% of the stock is currently owned by company insiders.

Institutional Trading of Ardelyx

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. CenterBook Partners LP lifted its stake in shares of Ardelyx by 29.0% during the 3rd quarter. CenterBook Partners LP now owns 60,140 shares of the biopharmaceutical company's stock worth $206,000 after buying an additional 13,536 shares during the last quarter. Kestra Advisory Services LLC acquired a new position in Ardelyx in the 3rd quarter valued at about $39,000. Chicago Partners Investment Group LLC grew its stake in Ardelyx by 33.8% in the 3rd quarter. Chicago Partners Investment Group LLC now owns 57,655 shares of the biopharmaceutical company's stock valued at $178,000 after buying an additional 14,563 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new position in Ardelyx in the 3rd quarter valued at about $44,000. Finally, Profund Advisors LLC raised its holdings in Ardelyx by 6.1% in the 3rd quarter. Profund Advisors LLC now owns 111,771 shares of the biopharmaceutical company's stock valued at $382,000 after acquiring an additional 6,433 shares during the period. Institutional investors and hedge funds 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 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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