Ironwood Pharmaceuticals (NASDAQ:IRWD) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Wednesday.
According to Zacks, “Ironwood’s dependence on Linzess for growth is concerning. Performance of Linzess has been uneven, encouraging at times and falling below expectations at others based on customer buying patterns. Moreover, competition in CIC and IBS-C, Linzess’ target markets is intensifying. Any Linzess-related pipeline/regulatory setbacks will weigh heavily on the stock, as the rest of its pipeline is mostly mid-stage in nature. Also, the uptake of Zurampic, Ironwood’s second marketed drug, has been slow and expectations from new launched combination gout drug, Duzallo, are quite low. Investor focus should be on Ironwood’s pipeline updates. Shares have outperformed the industry so far this year. Estimates have remained stable lately ahead of the company’s Q1 earnings release. The company has a negative record of earnings surprises in recent quarters.”
Other research analysts have also issued research reports about the stock. ValuEngine upgraded shares of Ironwood Pharmaceuticals from a “sell” rating to a “hold” rating in a research note on Monday, April 9th. Wells Fargo set a $18.00 target price on shares of Ironwood Pharmaceuticals and gave the stock a “buy” rating in a research report on Monday, April 9th. BidaskClub upgraded shares of Ironwood Pharmaceuticals from a “hold” rating to a “buy” rating in a research report on Tuesday, March 27th. Finally, Bank of America lowered shares of Ironwood Pharmaceuticals from a “buy” rating to an “underperform” rating and decreased their target price for the stock from $20.00 to $15.00 in a research report on Friday, January 5th. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating and five have assigned a buy rating to the stock. Ironwood Pharmaceuticals presently has a consensus rating of “Hold” and a consensus target price of $18.13.
Ironwood Pharmaceuticals (NASDAQ:IRWD) last issued its quarterly earnings results on Thursday, February 15th. The biotechnology company reported ($0.14) EPS for the quarter, topping the consensus estimate of ($0.18) by $0.04. Ironwood Pharmaceuticals had a negative net margin of 39.20% and a negative return on equity of 2,073.20%. The firm had revenue of $94.20 million for the quarter, compared to analysts’ expectations of $88.86 million. During the same period in the previous year, the firm posted ($0.12) EPS. The company’s revenue for the quarter was up 7.7% on a year-over-year basis. sell-side analysts anticipate that Ironwood Pharmaceuticals will post -0.46 EPS for the current fiscal year.
In other news, CFO Gina Consylman sold 3,594 shares of the company’s stock in a transaction that occurred on Wednesday, February 21st. The shares were sold at an average price of $14.66, for a total transaction of $52,688.04. Following the completion of the sale, the chief financial officer now owns 59,125 shares of the company’s stock, valued at approximately $866,772.50. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Mark G. Currie sold 60,000 shares of the company’s stock in a transaction that occurred on Wednesday, January 24th. The stock was sold at an average price of $15.45, for a total transaction of $927,000.00. Following the sale, the insider now directly owns 835,000 shares of the company’s stock, valued at approximately $12,900,750. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 66,728 shares of company stock valued at $1,024,732. 7.63% of the stock is currently owned by insiders.
Several hedge funds have recently added to or reduced their stakes in the company. Brown Capital Management LLC raised its stake in shares of Ironwood Pharmaceuticals by 0.7% during the fourth quarter. Brown Capital Management LLC now owns 6,263,825 shares of the biotechnology company’s stock valued at $93,895,000 after acquiring an additional 46,250 shares during the last quarter. Sarissa Capital Management LP acquired a new stake in shares of Ironwood Pharmaceuticals during the fourth quarter worth $24,733,000. Senzar Asset Management LLC increased its position in shares of Ironwood Pharmaceuticals by 185.8% during the fourth quarter. Senzar Asset Management LLC now owns 1,448,800 shares of the biotechnology company’s stock worth $21,718,000 after buying an additional 941,800 shares during the period. Geode Capital Management LLC increased its position in shares of Ironwood Pharmaceuticals by 2.6% during the fourth quarter. Geode Capital Management LLC now owns 1,239,906 shares of the biotechnology company’s stock worth $18,586,000 after buying an additional 30,901 shares during the period. Finally, State of Wisconsin Investment Board increased its position in shares of Ironwood Pharmaceuticals by 15.8% during the fourth quarter. State of Wisconsin Investment Board now owns 846,800 shares of the biotechnology company’s stock worth $12,694,000 after buying an additional 115,800 shares during the period.
About Ironwood Pharmaceuticals
Ironwood Pharmaceuticals, Inc, a commercial biotechnology company, engages in the research, development, and commercialization of human therapeutic products. The company markets linaclotide, a guanylate cyclase type-C agonist for the treatment of adults suffering from irritable bowel syndrome with constipation (IBS-C) or chronic idiopathic constipation (CIC) under the LINZESS name in the United States and CONSTELLA name in the European Union; and lesinurad for the treatment of hyperuricemia associated with uncontrolled gout in adults under the ZURAMPIC and DUZALLO names.
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