Ironwood Pharmaceuticals (NASDAQ:IRWD) Shares Climb 7.4% - What's Next?

Key Points

• Ironwood Pharmaceuticals shares rose 7.4% to about $3.87 in Thursday midday trading, although volume was roughly 81% below the average session level.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $6.23, well above the recent trading price.
• The company’s latest quarter fell slightly short of expectations, reporting $0.31 in adjusted EPS versus $0.32 expected and revenue of $113.04 million versus $114.84 million projected.

Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD - Get Free Report)'s stock price shot up 7.4% during mid-day trading on Thursday. The company traded as high as $3.84 and last traded at $3.8650. Approximately 569,492 shares traded hands during trading, a decline of 81% from the average session volume of 2,953,163 shares. The stock had previously closed at $3.60.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on IRWD shares. Weiss Ratings upgraded shares of Ironwood Pharmaceuticals from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, October 8th. Wall Street Zen lowered Ironwood Pharmaceuticals from a "strong-buy" rating to a "buy" rating in a report on Saturday, September 5th. Zacks Research cut Ironwood Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 30th. Finally, Jefferies Financial Group raised Ironwood Pharmaceuticals to a "hold" rating in a research report on Friday, September 25th. One investment 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 MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $6.23.

Ironwood Pharmaceuticals Price Performance

The business has a fifty day moving average of $4.12 and a 200 day moving average of $3.97. The stock has a market cap of $622.13 million, a price-to-earnings ratio of 4.89 and a beta of 0.21.

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 the consensus estimate of $0.32 by ($0.01). The business had revenue of $113.04 million for the quarter, compared to the consensus estimate of $114.84 million. Ironwood Pharmaceuticals had a net margin of 33.36% and a negative return on equity of 58.38%. On average, analysts expect that Ironwood Pharmaceuticals, Inc. will post 1.10 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. DGS Capital Management LLC bought a new position in shares of Ironwood Pharmaceuticals in the 4th quarter valued at approximately $35,000. Principal Financial Group Inc. acquired a new stake in Ironwood Pharmaceuticals in the 1st quarter worth approximately $40,000. Y Intercept Hong Kong Ltd bought a new stake in Ironwood Pharmaceuticals during the first quarter worth approximately $47,000. Bull Harbor Capital LLC bought a new stake in Ironwood Pharmaceuticals during the first quarter worth approximately $48,000. Finally, Chicago Partners Investment Group LLC bought a new stake in Ironwood Pharmaceuticals during the first quarter worth approximately $65,000.

About Ironwood Pharmaceuticals

Ironwood Pharmaceuticals, Inc is a gastrointestinal-focused biopharmaceutical company that discovers, develops, and commercializes medicines for gastrointestinal diseases. The company concentrates on conditions affecting the digestive system, including disorders with substantial unmet medical needs.

Ironwood's principal commercial product is LINZESS (linaclotide), a prescription treatment for adults with irritable bowel syndrome with constipation and chronic idiopathic constipation. In the United States, LINZESS is marketed through a collaboration with AbbVie, while it is marketed in many international markets under the name CONSTELLA through a collaboration with the healthcare business of AstraZeneca and other regional partners.

Founded in 1998 and headquartered in Boston, Massachusetts, Ironwood has expanded its development activities through internal research, partnerships, and acquisitions.

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