Ironwood Pharmaceuticals (NASDAQ:IRWD) Shares Down 10.1% – Here’s Why

Shares of Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) dropped 10.1% during trading on Friday . The stock traded as low as $3.22 and last traded at $3.2920. Approximately 1,074,097 shares traded hands during mid-day trading, a decline of 81% from the average daily volume of 5,541,214 shares. The stock had previously closed at $3.66.

Key Stories Impacting Ironwood Pharmaceuticals

Here are the key news stories impacting Ironwood Pharmaceuticals this week:

• Positive Sentiment: Analyst upside: Citizens Jmp raised its price target to $10 and kept a “market outperform” rating, signaling bullish conviction and a sizable implied upside relative to the current price. Read More.
• Positive Sentiment: Earnings call nuance: Management highlighted continued strength in LINZESS sales on the Q4 call, a revenue driver that investors may view as durable even as other metrics softened. Read More.
• Neutral Sentiment: Primary materials available: The full Q4 2025 earnings call transcript and the investor presentation were published for review; these are useful for digging into guidance, margin details and pipeline commentary. Read More. · Read More.
• Neutral Sentiment: Post-quarter valuation analysis: Several write-ups are re-checking IRWD valuation after Q4 results and 2026 revenue guidance — useful for longer-term positioning but not immediate catalysts. Read More.
• Negative Sentiment: Earnings and revenue miss: Q4 reported a ($0.01) EPS vs. consensus ~$0.02 and revenue fell ~47% year-over-year, materially missing estimates — a primary driver of selling pressure. Read More.
• Negative Sentiment: Pipeline setback: Analysts flagged an extended timeline for apraglutide (development delays/updated expectations), prompting downward revisions to the company’s growth runway and valuation. Read More.
• Negative Sentiment: Analyst downgrade: Zacks Research cut IRWD from “strong-buy” to “hold,” reducing near-term buy-side momentum and likely contributing to intraday weakness. Read More.
• Negative Sentiment: Market commentary: Multiple analyst and media pieces summarized why shares dropped sharply after the quarter, reinforcing the narrative of weaker near-term fundamentals and uncertainty around the pipeline. Read More.

Analysts Set New Price Targets

A number of research firms have commented on IRWD. Citizens Jmp boosted their price target on shares of Ironwood Pharmaceuticals from $8.00 to $10.00 and gave the company a “market outperform” rating in a research report on Thursday. Craig Hallum upgraded Ironwood Pharmaceuticals from a “hold” rating to a “strong-buy” rating in a report on Monday, January 5th. Zacks Research cut Ironwood Pharmaceuticals from a “strong-buy” rating to a “hold” rating in a report on Wednesday. Citigroup upgraded shares of Ironwood Pharmaceuticals from a “market perform” rating to an “outperform” rating in a report on Monday, January 5th. Finally, Wells Fargo & Company upped their price target on shares of Ironwood Pharmaceuticals from $3.00 to $5.00 and gave the company an “equal weight” rating in a report on Monday, January 5th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Ironwood Pharmaceuticals has a consensus rating of “Hold” and an average price target of $4.93.

Ironwood Pharmaceuticals Stock Performance

The firm’s 50-day simple moving average is $4.28 and its 200 day simple moving average is $2.80. The stock has a market capitalization of $542.53 million, a P/E ratio of 25.58 and a beta of 0.17.

Ironwood Pharmaceuticals (NASDAQ:IRWD) last released its earnings results on Wednesday, February 25th. The biotechnology company reported ($0.01) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.03). Ironwood Pharmaceuticals had a net margin of 8.11% and a negative return on equity of 13.72%. The company had revenue of $47.71 million during the quarter, compared to analyst estimates of $86.10 million. As a group, research analysts expect that Ironwood Pharmaceuticals, Inc. will post 0.1 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Ironwood Pharmaceuticals

A number of institutional investors and hedge funds have recently modified their holdings of the company. ProShare Advisors LLC increased its position in Ironwood Pharmaceuticals by 9.6% during the fourth quarter. ProShare Advisors LLC now owns 36,315 shares of the biotechnology company’s stock worth $122,000 after buying an additional 3,170 shares during the last quarter. Integrated Wealth Concepts LLC raised its stake in Ironwood Pharmaceuticals by 21.4% in the 3rd quarter. Integrated Wealth Concepts LLC now owns 19,295 shares of the biotechnology company’s stock valued at $25,000 after acquiring an additional 3,406 shares during the period. Mercer Global Advisors Inc. ADV lifted its holdings in Ironwood Pharmaceuticals by 7.8% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 76,951 shares of the biotechnology company’s stock valued at $259,000 after purchasing an additional 5,598 shares during the last quarter. Public Employees Retirement System of Ohio boosted its position in Ironwood Pharmaceuticals by 11.7% during the fourth quarter. Public Employees Retirement System of Ohio now owns 67,888 shares of the biotechnology company’s stock worth $229,000 after purchasing an additional 7,120 shares during the period. Finally, Merit Financial Group LLC increased its holdings in shares of Ironwood Pharmaceuticals by 17.4% in the third quarter. Merit Financial Group LLC now owns 48,879 shares of the biotechnology company’s stock valued at $64,000 after purchasing an additional 7,232 shares during the last quarter.

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.