Zacks Investment Research Lowers Ironwood Pharmaceuticals Inc. (IRWD) to Sell
Ironwood Pharmaceuticals Inc. (NASDAQ:IRWD) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “Ironwood’s key marketed drug, Linzess has blockbuster potential, if approved for additional indications. We are also encouraged by Ironwood's partnership deals for the development and commercialization of Linzess in different territories. However, Ironwood is dependent on Linzess for growth. Notably, any Linzess-related pipeline/regulatory setbacks would weigh heavily on the stock, given that the rest of its pipeline is mostly mid-stage in nature. Moreover, Linzess' target market has quite a few players, with other companies working on bringing new products to market.”
Several other brokerages also recently issued reports on IRWD. Wedbush reiterated a “neutral” rating and issued a $10.00 target price on shares of Ironwood Pharmaceuticals in a research note on Thursday, August 4th. Cowen and Company reiterated a “buy” rating on shares of Ironwood Pharmaceuticals in a research note on Thursday, May 26th. Leerink Swann restated a “market perform” rating and set a $14.00 price objective (up from $10.00) on shares of Ironwood Pharmaceuticals in a research report on Monday, August 8th. JPMorgan Chase & Co. raised their price objective on shares of Ironwood Pharmaceuticals from $15.00 to $16.00 and gave the stock an “overweight” rating in a research report on Friday, August 5th. Finally, Barclays PLC raised their price objective on shares of Ironwood Pharmaceuticals from $11.00 to $12.00 and gave the stock an “equal weight” rating in a research report on Friday, August 5th. One analyst has rated the stock with a sell rating, five have given a hold rating and six have given a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average target price of $15.20.
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Shares of Ironwood Pharmaceuticals (NASDAQ:IRWD) traded up 1.61% during trading on Tuesday, reaching $15.13. The company had a trading volume of 1,302,719 shares. The company’s market cap is $2.20 billion. The firm has a 50 day moving average price of $13.75 and a 200 day moving average price of $12.32. Ironwood Pharmaceuticals has a 12 month low of $7.35 and a 12 month high of $15.33.
Ironwood Pharmaceuticals (NASDAQ:IRWD) last posted its quarterly earnings data on Thursday, August 4th. The company reported ($0.16) EPS for the quarter, missing the Zacks’ consensus estimate of ($0.15) by $0.01. Ironwood Pharmaceuticals had a negative return on equity of 94.75% and a negative net margin of 45.21%. The business had revenue of $54.40 million for the quarter, compared to analyst estimates of $54.49 million. During the same quarter in the prior year, the company earned ($0.34) earnings per share. The company’s quarterly revenue was up 96.4% on a year-over-year basis. Analysts predict that Ironwood Pharmaceuticals will post ($0.75) earnings per share for the current year.
In other news, Director Lawrence S. Olanoff sold 3,200 shares of the firm’s stock in a transaction that occurred on Tuesday, September 6th. The shares were sold at an average price of $13.72, for a total transaction of $43,904.00. Following the transaction, the director now directly owns 29,305 shares of the company’s stock, valued at $402,064.60. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 7.17% of the company’s stock.
A number of hedge funds and other institutional investors have recently made changes to their positions in IRWD. Schwab Charles Investment Management Inc. boosted its position in shares of Ironwood Pharmaceuticals by 4.2% in the second quarter. Schwab Charles Investment Management Inc. now owns 435,942 shares of the company’s stock worth $5,700,000 after buying an additional 17,539 shares during the period. Amalgamated Bank boosted its stake in Ironwood Pharmaceuticals by 3.0% in the second quarter. Amalgamated Bank now owns 13,668 shares of the company’s stock worth $182,000 after buying an additional 397 shares during the last quarter. Teachers Retirement System of The State of Kentucky boosted its stake in Ironwood Pharmaceuticals by 3.2% in the second quarter. Teachers Retirement System of The State of Kentucky now owns 206,530 shares of the company’s stock worth $2,701,000 after buying an additional 6,500 shares during the last quarter. A.R.T. Advisors LLC boosted its stake in Ironwood Pharmaceuticals by 53.2% in the second quarter. A.R.T. Advisors LLC now owns 304,215 shares of the company’s stock worth $3,977,000 after buying an additional 105,600 shares during the last quarter. Finally, Carlson Capital L P bought a new stake in Ironwood Pharmaceuticals during the second quarter worth $14,382,000. 93.96% of the stock is currently owned by institutional investors and hedge funds.
About Ironwood Pharmaceuticals
Ironwood Pharmaceuticals, Inc is a biotechnology company. The Company’s products Linaclotide provides patients and healthcare practitioners with a treatment option for adults in the United States and certain other countries with irritable bowel syndrome with constipation (IBS-C), chronic idiopathic constipation (CIC) and gastrointestinal (GI) disorders.
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