Ironwood Pharmaceuticals (NASDAQ:IRWD) Shares Up 3.8% - Should You Buy?

Key Points

• Ironwood Pharmaceuticals shares rose 3.8% to about $3.77, although trading volume was 89% below the stock’s average daily volume.
• Analyst sentiment remains moderately bullish, with a consensus rating of “Moderate Buy” and an average price target of $6.23—well above the current share price—despite several recent rating downgrades.
• The company narrowly missed quarterly earnings and revenue estimates, reporting $0.31 EPS and $113.04 million in revenue, while institutional investors including Dimensional Fund Advisors increased or initiated positions.

Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD - Get Free Report)'s share price was up 3.8% during trading on Wednesday. The stock traded as high as $3.74 and last traded at $3.7690. Approximately 321,981 shares traded hands during mid-day trading, a decline of 89% from the average daily volume of 2,989,042 shares. The stock had previously closed at $3.63.

Analysts Set New Price Targets

Several research analysts have issued reports on the company. Wall Street Zen cut Ironwood Pharmaceuticals from a "strong-buy" rating to a "buy" rating in a report on Saturday, September 5th. Weiss Ratings downgraded shares of Ironwood Pharmaceuticals from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, September 4th. Zacks Research lowered shares of Ironwood Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 30th. Finally, Jefferies Financial Group raised shares of Ironwood Pharmaceuticals to a "hold" rating in a research note on Friday, September 25th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $6.23.

Ironwood Pharmaceuticals Stock Up 5.6%

The business has a 50-day simple moving average of $4.16 and a two-hundred day simple moving average of $3.94. The company has a market cap of $633.70 million, a price-to-earnings ratio of 4.98 and a beta of 0.21.

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

Institutional Trading of Ironwood Pharmaceuticals

Several institutional investors have recently modified their holdings of the company. Dimensional Fund Advisors LP increased its stake in Ironwood Pharmaceuticals by 529.3% in the first quarter. Dimensional Fund Advisors LP now owns 2,082,055 shares of the biotechnology company's stock valued at $7,307,000 after acquiring an additional 1,751,219 shares during the period. Bank of New York Mellon Corp acquired a new stake in shares of Ironwood Pharmaceuticals during the 2nd quarter worth about $2,142,000. Pacer Advisors Inc. bought a new stake in Ironwood Pharmaceuticals during the first quarter worth about $3,982,000. Inspire Investing LLC acquired a new stake in shares of Ironwood Pharmaceuticals during the first quarter worth approximately $1,790,000. Finally, Globeflex Capital L P bought a new position in shares of Ironwood Pharmaceuticals in the second quarter valued at approximately $1,094,000.

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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