Buying Ironwood Pharmaceuticals Inc. (IRWD) Stock Is A Smart Move Today?

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Ironwood Pharmaceuticals Inc. (NASDAQ:IRWD) finished Wednesday with a subtraction of -$0.05 to close at $12.15, a downside of -0.41 percent. An average of 1,086,200 shares of common stock have been traded in the last five days. There was a gain of $0.05 in the past week, and it reached a new high 10 times over the past 12 months. The last 20 days have seen an average of 1,731,030 shares traded, while the 50-day average volume stands at 1,790,906.

IRWD stock has increased by 3.14% in the last month. The company shares reached their 1-month lowest point of $11.62 on 12/09/22. With the stock rallying to its 52-week high on 03/30/22, shares of the company touched a low of $9.73 and a high of $12.95 in 52 weeks. It has reached a new high 9 times so far this year and achieved 4.20% or $0.49 in price. In spite of this, the price is down -6.18% from the 52-week high.


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Insider Transactions

IRWD stock investors should be aware that Ironwood Pharmaceuticals Inc. (IRWD) stock had its last reported insider trading activity 15 days ago on Dec 14. In this transaction, the insider spent $334,530. Principal Accounting Officer, Silver Ronald, disposed of 682 shares at a price of $11.56 on Nov 21. The insider now owns more than $7,884 worth of shares. Prior to that, SVP, Chief Financial Officer Emany Sravan Kumar went on to Sale 6,578 shares at $11.56 each on Nov 21. An amount of $76,042 was transacted.

Valuation Metrics

Ironwood Pharmaceuticals Inc. (IRWD) has a trailing price-to-earnings (P/E) ratio of 12.86. The stock’s beta is 0.97. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.40, the price-to-book (PB) ratio at 3.15, and the price-to-cash flow ratio at 7.16.

Financial Health

The quick ratio of Ironwood Pharmaceuticals Inc. for the three months ended September 29 was 25.80, and the current ratio was 25.80, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.67 and a total debt to equity ratio of 0.67 for the quarter ending September 29. Its gross profit as reported stood at $413.75 million compared to revenue of $413.75 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Ironwood Pharmaceuticals Inc.’s return on assets was 15.90%.

Earnings Surprise

In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $50.32 million in the quarter, while revenues were shrunk -677.62%. The analyst consensus anticipated Ironwood Pharmaceuticals Inc.’s latest quarter earnings to come in at $0.26 per share, but it turned out to be $0.28, a 7.70% surprise. For the quarter, EBITDA amounted to $68.84 million. Shareholders own equity worth $153.4 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Ironwood Pharmaceuticals Inc. (IRWD) price momentum. RSI 9-day as of the close on 28 December was 52.97%, suggesting the stock is Neutral, with historical volatility in this time frame at 21.18%.

As of today, IRWD’s price is $12.26 +0.41% or $0.05 from its 5-day moving average. IRWD is currently trading +2.70% higher than its 20-day SMA and +2.36% higher than its 100-day SMA. However, the stock’s current price level is +19.00% above the SMA50 and +4.38% above the SMA200.

The stochastic %K and %D were 67.39% and 74.11%, respectively, and the average true range (ATR) was 0.28. With the 14-day stochastic at 57.30% and the average true range at 0.29, the RSI (14) stands at 55.61%. The stock has reached 0.08 on the 9-day MACD Oscillator while the 14-day reading was at 0.11.

Analyst Ratings

CapitalOne launched coverage on Ironwood Pharmaceuticals Inc. (NASDAQ: IRWD) in its analyst report released on September 02, 2022. The firm assigned the stock an Overweight rating. The consensus rating for Ironwood Pharmaceuticals Inc. (IRWD) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell IRWD, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 1 others rate it as a “buy”.

What is IRWD’s price target for the next 12 months?

Analysts predict a range of price targets between $9.00 and $16.00, with a median target of $15.00. Taking a look at these predictions, the average price target given by analysts for Ironwood Pharmaceuticals Inc. (IRWD) stock is $13.60.

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