Ironwood Pharmaceuticals (NASDAQ:IRWD) Trading Down 5.8% – Should You Sell?

Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) was down 5.8% during trading on Thursday . The stock traded as low as $3.61 and last traded at $3.6750. Approximately 275,817 shares were traded during mid-day trading, a decline of 94% from the average daily volume of 4,598,499 shares. The stock had previously closed at $3.90.

Analysts Set New Price Targets

Several research analysts have weighed in on the stock. Citigroup upgraded shares of Ironwood Pharmaceuticals from a “market perform” rating to an “outperform” rating in a research report on Monday, January 5th. Jefferies Financial Group reissued a “hold” rating and set a $3.70 price target on shares of Ironwood Pharmaceuticals in a research note on Thursday, February 26th. Weiss Ratings restated a “sell (d)” rating on shares of Ironwood Pharmaceuticals in a report on Monday, December 29th. Zacks Research downgraded Ironwood Pharmaceuticals from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, February 25th. Finally, Citizens Jmp lifted their price objective on Ironwood Pharmaceuticals from $8.00 to $10.00 and gave the stock a “market outperform” rating in a report on Thursday, February 26th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $4.93.

Ironwood Pharmaceuticals Stock Performance

The stock’s 50 day moving average is $3.94 and its 200 day moving average is $3.21. The stock has a market capitalization of $577.23 million, a price-to-earnings ratio of 27.23 and a beta of 0.17.

Ironwood Pharmaceuticals (NASDAQ:IRWD) last announced 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). The business had revenue of $47.71 million for the quarter, compared to analyst estimates of $86.10 million. Ironwood Pharmaceuticals had a negative return on equity of 13.72% and a net margin of 8.11%. On average, sell-side analysts anticipate that Ironwood Pharmaceuticals, Inc. will post 0.1 EPS for the current year.

Insider Activity

In related news, Director Alexander J. Denner sold 6,730,800 shares of the company’s stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $3.05, for a total value of $20,528,940.00. Following the sale, the director owned 9,188,635 shares of the company’s stock, valued at approximately $28,025,336.75. This represents a 42.28% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 12.70% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Ironwood Pharmaceuticals

Institutional investors have recently made changes to their positions in the stock. Bank of America Corp DE lifted its position in shares of Ironwood Pharmaceuticals by 248.3% in the third quarter. Bank of America Corp DE now owns 11,695,544 shares of the biotechnology company’s stock valued at $15,321,000 after acquiring an additional 8,337,672 shares in the last quarter. Millennium Management LLC increased its position in Ironwood Pharmaceuticals by 186.6% during the 1st quarter. Millennium Management LLC now owns 6,359,682 shares of the biotechnology company’s stock worth $9,349,000 after purchasing an additional 4,140,439 shares in the last quarter. AQR Capital Management LLC raised its stake in Ironwood Pharmaceuticals by 144.3% in the 2nd quarter. AQR Capital Management LLC now owns 6,165,637 shares of the biotechnology company’s stock valued at $4,422,000 after purchasing an additional 3,641,762 shares during the last quarter. Marshall Wace LLP raised its stake in Ironwood Pharmaceuticals by 616.3% in the 2nd quarter. Marshall Wace LLP now owns 3,993,557 shares of the biotechnology company’s stock valued at $2,875,000 after purchasing an additional 3,436,036 shares during the last quarter. Finally, Jane Street Group LLC lifted its holdings in Ironwood Pharmaceuticals by 740.5% in the 1st quarter. Jane Street Group LLC now owns 3,510,117 shares of the biotechnology company’s stock valued at $5,160,000 after purchasing an additional 3,092,475 shares in the last quarter.

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.