Ironwood Pharmaceuticals (NASDAQ:IRWD) Shares Break Above 200-Day Moving Average - Here's What Happened

Key Points

• Ironwood Pharmaceuticals shares crossed above their 200-day moving average, reaching $4.25 before closing at $4.13 on volume of about 1.32 million shares.
• Analyst sentiment remains moderately positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $6.23, despite recent downgrades from several research firms.
• The company slightly missed quarterly expectations, reporting adjusted earnings of $0.31 per share versus $0.32 expected and revenue of $113.04 million versus $114.84 million forecast; an insider also sold 127,890 shares.

Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $3.92 and traded as high as $4.25. Ironwood Pharmaceuticals shares last traded at $4.13, with a volume of 1,319,660 shares changing hands.

Analyst Ratings Changes

A number of research firms have recently weighed in on IRWD. Weiss Ratings lowered Ironwood Pharmaceuticals from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, September 4th. Wall Street Zen cut Ironwood Pharmaceuticals from a "strong-buy" rating to a "buy" rating in a report on Saturday, September 5th. Finally, Zacks Research downgraded Ironwood Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $6.23.

Ironwood Pharmaceuticals Trading Down 1.4%

The firm's 50 day simple moving average is $4.16 and its 200 day simple moving average is $3.92. The firm has a market cap of $682.44 million, a PE ratio of 5.36 and a beta of 0.20.

Ironwood Pharmaceuticals (NASDAQ:IRWD - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The biotechnology company reported $0.31 earnings per share for the quarter, missing analysts' consensus estimates of $0.32 by ($0.01). The firm had revenue of $113.04 million for the quarter, compared to analysts' expectations of $114.84 million. Ironwood Pharmaceuticals had a net margin of 33.36% and a negative return on equity of 58.38%. As a group, equities research analysts predict that Ironwood Pharmaceuticals, Inc. will post 1.1 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Ironwood Pharmaceuticals news, insider Ronald Silver sold 127,890 shares of Ironwood Pharmaceuticals stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $4.52, for a total value of $578,062.80. Following the sale, the insider owned 313,680 shares of the company's stock, valued at $1,417,833.60. The trade was a 28.96% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 9.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Engineers Gate Manager LP lifted its holdings in shares of Ironwood Pharmaceuticals by 22.8% in the 2nd quarter. Engineers Gate Manager LP now owns 98,052 shares of the biotechnology company's stock valued at $413,000 after acquiring an additional 18,200 shares during the last quarter. Squarepoint Ops LLC increased its stake in Ironwood Pharmaceuticals by 104.3% during the second quarter. Squarepoint Ops LLC now owns 66,899 shares of the biotechnology company's stock worth $282,000 after acquiring an additional 34,153 shares during the last quarter. AXQ Capital LP raised its position in Ironwood Pharmaceuticals by 263.2% during the second quarter. AXQ Capital LP now owns 47,028 shares of the biotechnology company's stock valued at $198,000 after purchasing an additional 34,079 shares during the period. Wellington Management Group LLP raised its position in Ironwood Pharmaceuticals by 3.4% during the second quarter. Wellington Management Group LLP now owns 468,821 shares of the biotechnology company's stock valued at $1,974,000 after purchasing an additional 15,306 shares during the period. Finally, Public Employees Retirement System of Ohio bought a new stake in shares of Ironwood Pharmaceuticals in the 2nd quarter valued at approximately $252,000.

About Ironwood Pharmaceuticals

Ironwood Pharmaceuticals, Inc is a gastrointestinal-focused pharmaceutical company headquartered in Boston, Massachusetts. The company discovers, develops, and commercializes medicines for gastrointestinal diseases and other disorders where significant unmet medical needs remain.

Ironwood's primary marketed product is LINZESS (linaclotide), an oral medication used to treat irritable bowel syndrome with constipation and chronic idiopathic constipation. The product was approved by the U.S.

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