Ironwood Pharmaceuticals (NASDAQ:IRWD) Trading Down 5.1% – Here’s Why

Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) shares dropped 5.1% on Tuesday . The company traded as low as $3.97 and last traded at $3.9950. 897,500 shares changed hands during mid-day trading, a decline of 74% from the average session volume of 3,444,271 shares. The stock had previously closed at $4.21.

Analyst Ratings Changes

IRWD has been the subject of several research reports. Wall Street Zen raised shares of Ironwood Pharmaceuticals from a “hold” rating to a “strong-buy” rating in a research report on Sunday, May 17th. Zacks Research raised shares of Ironwood Pharmaceuticals from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, July 1st. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of Ironwood Pharmaceuticals in a report on Monday, April 27th. Two analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $6.23.

Ironwood Pharmaceuticals Price Performance

The stock’s 50-day moving average price is $3.88 and its 200 day moving average price is $3.96. The firm has a market cap of $651.42 million, a P/E ratio of 6.69 and a beta of 0.20.

Ironwood Pharmaceuticals (NASDAQ:IRWD) last issued its quarterly earnings results on Thursday, May 7th. The biotechnology company reported $0.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by ($0.01). The business had revenue of $106.51 million during the quarter, compared to analyst estimates of $92.11 million. Ironwood Pharmaceuticals had a net margin of 28.26% and a negative return on equity of 39.65%. As a group, analysts forecast that Ironwood Pharmaceuticals, Inc. will post 1.04 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Julie Mchugh sold 21,571 shares of the company’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $3.73, for a total transaction of $80,459.83. Following the sale, the director owned 250,749 shares in the company, valued at $935,293.77. This represents a 7.92% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, insider Ronald Silver sold 127,890 shares of the stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $4.52, for a total value of $578,062.80. Following the completion of the sale, the insider directly owned 313,680 shares of the company’s stock, valued at approximately $1,417,833.60. The trade was a 28.96% decrease in their position. The SEC filing for this sale provides additional information. 9.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Ironwood Pharmaceuticals

A number of institutional investors and hedge funds have recently modified their holdings of the company. Range Financial Group LLC acquired a new position in Ironwood Pharmaceuticals during the fourth quarter worth approximately $1,436,000. Hillsdale Investment Management Inc. acquired a new stake in shares of Ironwood Pharmaceuticals in the fourth quarter valued at approximately $3,897,000. GSA Capital Partners LLP lifted its position in shares of Ironwood Pharmaceuticals by 84.7% in the fourth quarter. GSA Capital Partners LLP now owns 571,613 shares of the biotechnology company’s stock valued at $1,926,000 after buying an additional 262,084 shares during the last quarter. Persistent Asset Partners Ltd bought a new position in shares of Ironwood Pharmaceuticals during the 4th quarter worth approximately $613,000. Finally, WINTON GROUP Ltd bought a new position in shares of Ironwood Pharmaceuticals during the 4th quarter worth approximately $554,000.

About Ironwood Pharmaceuticals

Ironwood Pharmaceuticals, Inc is a commercial‐stage biotechnology company focused on the discovery, development and commercialization of medicines for gastrointestinal (GI) disorders. The company’s flagship product is linaclotide, marketed under the brand name LINZESS in the United States for the treatment of irritable bowel syndrome with constipation (IBS-C) and chronic idiopathic constipation (CIC). Through a strategic collaboration with Allergan (now part of AbbVie), Ironwood also commercializes linaclotide in select ex-U.S.