Disc Medicine (NASDAQ:IRON) Shares Down 40% – Here’s Why

Disc Medicine, Inc. (NASDAQ:IRON) shares traded down 40% on Friday . The company traded as low as $56.53 and last traded at $42.9990. 340,661 shares traded hands during trading, a decline of 30% from the average session volume of 483,645 shares. The stock had previously closed at $71.65.

Disc Medicine News Roundup

Here are the key news stories impacting Disc Medicine this week:

• Positive Sentiment: FDA reviewers agreed that the AURORA and BEACON trials show bitopertin meaningfully lowers whole‑blood metal‑free PPIX — a validated biomarker signal that supports the drug’s mechanism and could underpin future approval if clinical linkage is shown. GlobeNewswire Release
• Positive Sentiment: Disc says the Phase 3 APOLLO trial is fully enrolled ahead of schedule, topline data are expected in Q4 2026, and the company believes APOLLO results could support traditional approval — a clear pathway to re‑engage regulators. GlobeNewswire Release
• Positive Sentiment: Balance sheet strength: Disc reported roughly $791M in cash and equivalents (12/31/25), giving runway into 2029 — reduces near‑term financing risk while APOLLO completes. GlobeNewswire Release
• Neutral Sentiment: Analyst commentary and coverage continue to show bullish long‑term targets (multiple firms with Buy/Overweight ratings and a median multi‑month target well above current levels), but those views hinge on APOLLO success. Globe and Mail
• Neutral Sentiment: Market mechanics: trading experienced LULD pauses and a spike in volume as the CRL news hit — expect elevated volatility until the company’s Feb. 17 investor call and subsequent filings.
• Negative Sentiment: Regulatory setback: the FDA issued a CRL — saying AURORA/BEACON showed PPIX lowering but did not demonstrate an association between PPIX change and sunlight‑exposure clinical endpoints; the agency wants APOLLO data before granting traditional approval, delaying any near‑term launch. Reuters Investing.com
• Negative Sentiment: Legal and governance pressure: a Pomerantz investor probe was announced into potential claims by IRON investors — increases litigation risk and potential distraction for management. PR Newswire
• Negative Sentiment: Insider selling and institutional rotation: recent datasets cited significant insider sales and mixed hedge‑fund flows — factors that can weigh on sentiment while the regulatory path is uncertain. Quiver Quant

Analysts Set New Price Targets

Several equities analysts recently weighed in on the stock. Wells Fargo & Company raised their price objective on shares of Disc Medicine from $91.00 to $109.00 and gave the company an “overweight” rating in a research report on Tuesday, December 16th. TD Cowen restated a “buy” rating on shares of Disc Medicine in a research note on Friday, December 19th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Disc Medicine in a research note on Wednesday, January 21st. Morgan Stanley reiterated an “overweight” rating and issued a $120.00 price objective on shares of Disc Medicine in a report on Thursday, January 8th. Finally, Stifel Nicolaus started coverage on shares of Disc Medicine in a research report on Monday, November 3rd. They set a “buy” rating and a $125.00 target price on the stock. Eleven research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Disc Medicine presently has a consensus rating of “Moderate Buy” and an average target price of $119.45.

Disc Medicine Stock Down 21.9%

The business’s 50 day moving average is $79.66 and its 200-day moving average is $75.15. The company has a debt-to-equity ratio of 0.05, a quick ratio of 23.45 and a current ratio of 23.45. The firm has a market capitalization of $2.11 billion, a price-to-earnings ratio of -10.46 and a beta of 0.88.

Insiders Place Their Bets

In other news, insider William Jacob Savage sold 13,093 shares of the company’s stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $91.22, for a total transaction of $1,194,343.46. Following the completion of the transaction, the insider directly owned 75,702 shares in the company, valued at $6,905,536.44. The trade was a 14.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO John D. Quisel sold 40,000 shares of the stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $93.05, for a total value of $3,722,000.00. Following the completion of the sale, the chief executive officer directly owned 171,828 shares of the company’s stock, valued at $15,988,595.40. This represents a 18.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 245,470 shares of company stock valued at $22,425,170. 3.64% of the stock is owned by company insiders.

Hedge Funds Weigh In On Disc Medicine

Several large investors have recently bought and sold shares of the stock. FORA Capital LLC bought a new stake in Disc Medicine in the 4th quarter valued at $544,000. The Manufacturers Life Insurance Company lifted its stake in shares of Disc Medicine by 10.4% in the fourth quarter. The Manufacturers Life Insurance Company now owns 52,510 shares of the company’s stock valued at $4,072,000 after buying an additional 4,933 shares during the period. Alyeska Investment Group L.P. bought a new stake in shares of Disc Medicine in the fourth quarter valued at about $3,970,000. Siren L.L.C. grew its position in Disc Medicine by 8.2% during the fourth quarter. Siren L.L.C. now owns 988,401 shares of the company’s stock worth $78,489,000 after buying an additional 75,000 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. increased its stake in Disc Medicine by 9.0% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 247,039 shares of the company’s stock valued at $19,617,000 after acquiring an additional 20,384 shares during the period. 83.70% of the stock is currently owned by institutional investors and hedge funds.

Disc Medicine Company Profile

Disc Medicine, Inc (NASDAQ: IRON) is a clinical-stage biotechnology company focused on discovering and developing precision medicines that restore normal cellular function in severe genetic and acquired diseases. The company employs a chemistry-driven approach to identify small molecules that selectively modulate RNA-binding proteins or splicing regulatory pathways. By leveraging proprietary screening and medicinal chemistry platforms, Disc Medicine aims to address diseases with high unmet medical needs and limited treatment options.

The company’s pipeline is anchored by lead programs targeting neuromuscular and hematological disorders.