Can Ironwood Pharmaceuticals Inc. (IRWD) Add Value To Your Portfolio?


As of Friday close, Ironwood Pharmaceuticals Inc.’s (NASDAQ:IRWD) stock was down -$0.1, moving down -0.96 percent to $10.37. The average number of shares traded per day over the past five days has been 2,395,220 shares. 1 time new highs have been achieved over the past 5 days, with a -$0.30 fall in that time frame. In the last twenty days, the average volume was 2,191,940, while in the previous 50 days, it was 2,078,710.

Since last month, IRWD stock retreated -7.41%. Shares of the company fell to $10.20 on 03/16/23, the lowest level in the past month. A 52-week high of $12.95 was reached on 01/06/23 after having rallying from a 52-week low of $9.73. Since the beginning of this year, IRWD’s stock price has dropped by -16.30% or -$2.02, and marked a new high 3 times. However, the stock has declined by -19.92% since its 52-week high.

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IRWD stock investors should be aware that Ironwood Pharmaceuticals Inc. (IRWD) stock had its last reported insider trading activity 15 days ago on Mar 03. MCCOURT Thomas A, the Chief Executive Officer of the company, disposed of 33,756 shares for $11.22 on Mar 03. It resulted in a $378,742 divestment by the insider. MCCOURT Thomas A sold 31,227 shares at an average price of $11.31 on Feb 28. The insider now owns 681,354 shares following the transaction. On Feb 28, SVP, Chief Operating Officer Rickard Jason sold 17,429 shares at $11.31 apiece. The transaction was valued at $197,122.

Valuation Metrics

Right now, Ironwood Pharmaceuticals Inc. (IRWD) has a P/E ratio of about 10.75. The stock’s beta is 0.97. Besides these, the trailing price-to-sales (P/S) ratio of 3.91, the price-to-book (PB) ratio of 2.44, and the price-to-cash flow ratio of 5.87 may also be considered.

Financial Health

In the three months ended December 30, Ironwood Pharmaceuticals Inc.’s quick ratio stood at 30.60, while its current ratio was 30.60, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending December 30 was 0.61, and the total debt-to-equity ratio was 0.61. In the year ended December 30, operating margins totaled 60.90%. Based on annual data, IRWD earned $410.6 million in gross profit and brought in $410.6 million in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 16.50%. Return on equity (ROE) for the past 12 months was 30.50%.

According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. IRWD’s revenue rose 3.22% to $108.64 million during the quarter, while net income inched up to $107.2 million. While analysts expected Ironwood Pharmaceuticals Inc. to report $0.27 quarterly earnings, the actual figure was $0.27 per share. During the quarter, the company generated $68.7 million in EBITDA. The liabilities of Ironwood Pharmaceuticals Inc. were 448.14 million at the end of its most recent quarter ended December 30, and its total debt was $415.92 million. The value of shareholders’ equity is $154.16 million.

Technical Picture

This quick technical analysis looks at Ironwood Pharmaceuticals Inc.’s (IRWD) price momentum. With a historical volatility rate of 21.73%, the RSI 9-day stood at 28.22% on 17 March.

With respect to its five-day moving average, the current Ironwood Pharmaceuticals Inc. price is down by -2.81% percent or -$0.30. At present, IRWD shares trade -8.63% below its 20-day simple moving average and -0.10% percent below its 100-day simple moving average. However, the stock is currently trading approximately -15.83% below its SMA50 and -7.99% below its SMA200.

Stochastic coefficient K was 12.88% and Stochastic coefficient D was 12.27%, while ATR was 0.30. Given the Stochastic reading of 13.39% for the 14-day period, the RSI (14) reading has been calculated as 32.18%. As of today, the MACD Oscillator reading stands at -0.19, while the 14-day reading stands at -0.42.

Analyst Ratings

CapitalOne launched its rating on Ironwood Pharmaceuticals Inc. (NASDAQ: IRWD) to an Overweight in a note to investors on September 02, 2022. Ironwood Pharmaceuticals Inc. (IRWD) has been rated Overweight by analysts. According to 0 brokerage firms, IRWD is a sell, and 3 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Ironwood Pharmaceuticals Inc. stock as buy, with 1 recommending it as overweight.

With a median target price of $15.00, the current consensus forecast for the stock is $9.00 – $16.00. Based on these forecasts, analysts predict Ironwood Pharmaceuticals Inc. (IRWD) will achieve an average price target of $13.20.


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