Zacks Investment Research lowered shares of Ironwood Pharmaceuticals (NASDAQ:IRWD) from a hold rating to a sell rating in a research note issued to investors on Wednesday.
According to Zacks, “Ironwood’s dependence on Linzess for growth is concerning. Performance of Linzess has been uneven, encouraging at times and falling below expectations at others based on customer buying patterns. Moreover, competition in CIC and IBS-C, Linzess’ target markets is intensifying. Any Linzess-related pipeline/regulatory setbacks will weigh heavily on the stock, as the rest of its pipeline is mostly mid-stage in nature. Also, the uptake of Zurampic, Ironwood’s second marketed drug, has been slow and expectations from new launched combination gout drug, Duzallo, are quite low. Investor focus should be on Ironwood’s pipeline updates. Shares have outperformed the industry so far this year. Estimates have remained stable lately ahead of the company’s Q1 earnings release. The company has a negative record of earnings surprises in recent quarters.”
A number of other research analysts also recently weighed in on IRWD. ValuEngine raised shares of Ironwood Pharmaceuticals from a sell rating to a hold rating in a research report on Monday, April 9th. Wells Fargo set a $18.00 target price on shares of Ironwood Pharmaceuticals and gave the company a buy rating in a research report on Monday, April 9th. BidaskClub raised shares of Ironwood Pharmaceuticals from a hold rating to a buy rating in a research report on Tuesday, March 27th. Finally, Bank of America downgraded shares of Ironwood Pharmaceuticals from a buy rating to an underperform rating and decreased their target price for the company from $20.00 to $15.00 in a research report on Friday, January 5th. Two research analysts have rated the stock with a sell rating, six have issued a hold rating and four have given a buy rating to the company’s stock. Ironwood Pharmaceuticals has an average rating of Hold and a consensus price target of $17.14.
Ironwood Pharmaceuticals stock opened at $17.60 on Wednesday. Ironwood Pharmaceuticals has a 1-year low of $12.89 and a 1-year high of $19.94. The company has a debt-to-equity ratio of 40.25, a current ratio of 4.72 and a quick ratio of 4.71.
Ironwood Pharmaceuticals (NASDAQ:IRWD) last released its earnings results on Thursday, February 15th. The biotechnology company reported ($0.14) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.18) by $0.04. The business had revenue of $94.20 million during the quarter, compared to the consensus estimate of $88.86 million. Ironwood Pharmaceuticals had a negative net margin of 39.20% and a negative return on equity of 2,073.20%. The firm’s revenue for the quarter was up 7.7% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.12) earnings per share. research analysts anticipate that Ironwood Pharmaceuticals will post -0.46 EPS for the current fiscal year.
In other news, CFO Gina Consylman sold 3,594 shares of Ironwood Pharmaceuticals stock in a transaction dated Wednesday, February 21st. The shares were sold at an average price of $14.66, for a total value of $52,688.04. Following the completion of the transaction, the chief financial officer now owns 59,125 shares of the company’s stock, valued at approximately $866,772.50. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Mark G. Currie sold 60,000 shares of Ironwood Pharmaceuticals stock in a transaction dated Wednesday, January 24th. The shares were sold at an average price of $15.45, for a total transaction of $927,000.00. Following the completion of the transaction, the insider now directly owns 835,000 shares of the company’s stock, valued at approximately $12,900,750. The disclosure for this sale can be found here. In the last three months, insiders sold 66,728 shares of company stock valued at $1,024,732. Insiders own 7.63% of the company’s stock.
Several institutional investors and hedge funds have recently made changes to their positions in the company. Brown Capital Management LLC grew its position in shares of Ironwood Pharmaceuticals by 0.7% in the 4th quarter. Brown Capital Management LLC now owns 6,263,825 shares of the biotechnology company’s stock valued at $93,895,000 after acquiring an additional 46,250 shares during the period. Sarissa Capital Management LP bought a new position in shares of Ironwood Pharmaceuticals in the 4th quarter valued at about $24,733,000. Senzar Asset Management LLC grew its position in shares of Ironwood Pharmaceuticals by 185.8% in the 4th quarter. Senzar Asset Management LLC now owns 1,448,800 shares of the biotechnology company’s stock valued at $21,718,000 after acquiring an additional 941,800 shares during the period. Geode Capital Management LLC grew its position in shares of Ironwood Pharmaceuticals by 2.6% in the 4th quarter. Geode Capital Management LLC now owns 1,239,906 shares of the biotechnology company’s stock valued at $18,586,000 after acquiring an additional 30,901 shares during the period. Finally, State of Wisconsin Investment Board lifted its stake in shares of Ironwood Pharmaceuticals by 15.8% during the 4th quarter. State of Wisconsin Investment Board now owns 846,800 shares of the biotechnology company’s stock worth $12,694,000 after buying an additional 115,800 shares during the last quarter.
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Ironwood Pharmaceuticals Company Profile
Ironwood Pharmaceuticals, Inc, a commercial biotechnology company, engages in the research, development, and commercialization of human therapeutic products. The company markets linaclotide, a guanylate cyclase type-C agonist for the treatment of adults suffering from irritable bowel syndrome with constipation (IBS-C) or chronic idiopathic constipation (CIC) under the LINZESS name in the United States and CONSTELLA name in the European Union; and lesinurad for the treatment of hyperuricemia associated with uncontrolled gout in adults under the ZURAMPIC and DUZALLO names.
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