Ironwood Pharmaceuticals (NASDAQ:IRWD) Shares Down 12.3% After Earnings Miss

Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD)’s stock price traded down 12.3% during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $4.24 and last traded at $4.2360. 712,320 shares were traded during trading, a decline of 82% from the average session volume of 3,866,305 shares. The stock had previously closed at $4.83.

The biotechnology company reported $0.24 EPS for the quarter, missing the consensus estimate of $0.25 by ($0.01). Ironwood Pharmaceuticals had a negative return on equity of 37.48% and a net margin of 28.26%.The firm had revenue of $106.51 million for the quarter, compared to the consensus estimate of $92.11 million.

Analyst Ratings Changes

IRWD has been the subject of several recent analyst reports. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Ironwood Pharmaceuticals in a research note on Monday, April 27th. Zacks Research cut shares of Ironwood Pharmaceuticals from a “strong-buy” rating to a “hold” rating in a report on Wednesday, February 25th. Wall Street Zen cut shares of Ironwood Pharmaceuticals from a “buy” rating to a “hold” rating in a report on Saturday. Jefferies Financial Group restated a “hold” rating and set a $3.70 price objective on shares of Ironwood Pharmaceuticals in a research report on Thursday, February 26th. Finally, Citizens Jmp increased their price target on shares of Ironwood Pharmaceuticals from $8.00 to $10.00 and gave the stock a “market outperform” rating in a research report on Thursday, February 26th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $6.23.

Insider Transactions at Ironwood Pharmaceuticals

In other news, Director Alexander J. Denner sold 6,730,800 shares of the business’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $3.05, for a total value of $20,528,940.00. Following the completion of the sale, the director owned 9,188,635 shares in the company, valued at approximately $28,025,336.75. The trade was a 42.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 12.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Ironwood Pharmaceuticals

Large investors have recently modified their holdings of the business. Range Financial Group LLC purchased a new stake in Ironwood Pharmaceuticals during the 4th quarter worth approximately $1,436,000. State of Wyoming increased its stake in shares of Ironwood Pharmaceuticals by 76.2% in the third quarter. State of Wyoming now owns 362,407 shares of the biotechnology company’s stock worth $475,000 after acquiring an additional 156,763 shares during the period. GSA Capital Partners LLP increased its stake 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 worth $1,926,000 after acquiring an additional 262,084 shares during the period. Calamos Advisors LLC acquired a new stake in shares of Ironwood Pharmaceuticals in the fourth quarter worth $49,000. Finally, Mirae Asset Global Investments Co. Ltd. increased its stake in shares of Ironwood Pharmaceuticals by 474.7% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 36,090 shares of the biotechnology company’s stock worth $122,000 after acquiring an additional 29,810 shares during the period.

Ironwood Pharmaceuticals Stock Up 1.2%

The stock has a market cap of $688.11 million, a price-to-earnings ratio of 7.03 and a beta of 0.29. The stock’s 50 day moving average price is $3.70 and its two-hundred day moving average price is $3.63.

Ironwood Pharmaceuticals Company Profile

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.