Zacks Investment Research Upgrades Ironwood Pharmaceuticals (IRWD) to Hold
Zacks Investment Research upgraded shares of Ironwood Pharmaceuticals (NASDAQ:IRWD) from a sell rating to a hold rating in a research note published on Thursday.
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 underperformed the industry in the past one year. Loss estimates have been stable lately ahead of the company’s Q4 earnings release. The company has a mixed record of earnings surprises in recent quarters.”
Several other research firms have also recently weighed in on IRWD. Morgan Stanley reissued a hold rating on shares of Ironwood Pharmaceuticals in a report on Monday, December 4th. ValuEngine raised shares of Ironwood Pharmaceuticals from a sell rating to a hold rating in a report on Wednesday, November 29th. Mizuho cut shares of Ironwood Pharmaceuticals from a buy rating to a neutral rating and decreased their price objective for the company from $20.00 to $16.00 in a report on Wednesday, December 6th. Credit Suisse Group started coverage on shares of Ironwood Pharmaceuticals in a report on Monday, November 27th. They set a buy rating and a $19.00 target price for the company. Finally, Bank of America cut shares of Ironwood Pharmaceuticals from a buy rating to an underperform rating and reduced their target price for the company from $20.00 to $15.00 in a report on Friday, January 5th. Three equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and four have assigned a buy rating to the company’s stock. Ironwood Pharmaceuticals currently has an average rating of Hold and an average price target of $17.56.
Ironwood Pharmaceuticals (NASDAQ:IRWD) last released its quarterly earnings data on Thursday, November 2nd. The biotechnology company reported ($0.18) earnings per share for the quarter, beating the consensus estimate of ($0.25) by $0.07. Ironwood Pharmaceuticals had a negative net margin of 48.89% and a negative return on equity of 645.22%. The firm had revenue of $86.80 million during the quarter, compared to analysts’ expectations of $73.59 million. During the same period in the previous year, the company earned ($0.18) earnings per share. The firm’s quarterly revenue was up 31.3% on a year-over-year basis. research analysts predict that Ironwood Pharmaceuticals will post -1.11 EPS for the current fiscal year.
In other Ironwood Pharmaceuticals news, CEO Peter M. Hecht sold 113,405 shares of the company’s stock in a transaction that occurred on Thursday, December 7th. The shares were sold at an average price of $15.12, for a total transaction of $1,714,683.60. Following the completion of the sale, the chief executive officer now directly owns 4,696,917 shares of the company’s stock, valued at $71,017,385.04. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Over the last ninety days, insiders have sold 115,769 shares of company stock valued at $1,752,491. 7.63% of the stock is owned by corporate insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in the company. Ameritas Investment Partners Inc. increased its stake in shares of Ironwood Pharmaceuticals by 5.8% in the second quarter. Ameritas Investment Partners Inc. now owns 11,821 shares of the biotechnology company’s stock worth $223,000 after purchasing an additional 648 shares in the last quarter. Amalgamated Bank increased its stake in shares of Ironwood Pharmaceuticals by 9.0% in the second quarter. Amalgamated Bank now owns 17,280 shares of the biotechnology company’s stock worth $326,000 after purchasing an additional 1,421 shares in the last quarter. Virtu KCG Holdings LLC increased its stake in shares of Ironwood Pharmaceuticals by 10.3% in the second quarter. Virtu KCG Holdings LLC now owns 15,740 shares of the biotechnology company’s stock worth $297,000 after purchasing an additional 1,470 shares in the last quarter. Legal & General Group Plc increased its stake in shares of Ironwood Pharmaceuticals by 5.0% in the second quarter. Legal & General Group Plc now owns 47,773 shares of the biotechnology company’s stock worth $900,000 after purchasing an additional 2,265 shares in the last quarter. Finally, Oppenheimer & Co. Inc. increased its stake in shares of Ironwood Pharmaceuticals by 11.8% in the third quarter. Oppenheimer & Co. Inc. now owns 34,000 shares of the biotechnology company’s stock worth $536,000 after purchasing an additional 3,600 shares in the last quarter.
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Ironwood Pharmaceuticals Company Profile
Ironwood Pharmaceuticals, Inc is a biotechnology company. The Company is advancing product opportunities in areas of unmet need, including irritable bowel syndrome with constipation (IBS C), and chronic idiopathic constipation (CIC), hyperuricemia associated with uncontrolled gout, uncontrolled gastroesophageal reflux disease (uncontrolled GERD), and vascular and fibrotic diseases.
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