Ironwood Pharmaceuticals Inc. (NASDAQ:IRWD) finished Thursday with an addition of $0.1 to close at $9.71, an upside of 1.04 percent. An average of 3,395,240 shares of common stock have been traded in the last five days. There was a fall of -$1.30 in the past week, and it reached a new high 9 times over the past 12 months. The last 20 days have seen an average of 1,884,345 shares traded, while the 50-day average volume stands at 1,987,378.
IRWD stock has decreased by -6.09% in the last month. The company shares reached their 1-month lowest point of $9.55 on 08/10/23. With the stock rallying to its 52-week high on 01/06/23, shares of the company touched a low of $9.56 and a high of $12.66 in 52 weeks. It has reached a new high 3 times so far this year and lost -21.63% or -$2.68 in price. In spite of this, the price is down -23.30% from the 52-week high.
Insider Transactions
IRWD stock investors should be aware that Ironwood Pharmaceuticals Inc. (IRWD) stock had its last reported insider trading activity 73 days ago on May 30. In this transaction, the insider spent $284,962. Chief Executive Officer, MCCOURT Thomas A, disposed of 36,000 shares at a price of $10.12 on May 22. The insider now owns more than $364,320 worth of shares. Prior to that, CMO,SVP,Head-Res&Drug Shetzline Michael went on to Sale 10,324 shares at $10.12 each on May 22. An amount of $104,479 was transacted.
Valuation Metrics
Ironwood Pharmaceuticals Inc. (IRWD) has a trailing price-to-earnings (P/E) ratio of 9.66. The stock’s beta is 0.96. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.58, the price-to-book (PB) ratio at 2.12, and the price-to-cash flow ratio at 5.15.
Financial Health
The quick ratio of Ironwood Pharmaceuticals Inc. for the three months ended June 29 was 36.30, and the current ratio was 36.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.56 and a total debt to equity ratio of 0.00 for the quarter ending June 29. Ironwood Pharmaceuticals Inc.’s EBITDA margin for the year ending June 29 is 61.31%, while its operating margin for the same period stands at 60.50%. Its gross profit as reported stood at $410.6 million compared to revenue of $410.6 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 17.00%.
Earnings Surprise
For the three-month period that ended June 29, Ironwood Pharmaceuticals Inc. had $400.0 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$1.06 billion in the quarter, while revenues of $45.71 million were grew 103.49%. The analyst consensus anticipated Ironwood Pharmaceuticals Inc.’s latest quarter earnings to come in at $0.25 per share, but it turned out to be $0.31, a 24.00% surprise. For the quarter, EBITDA amounted to -$1.08 billion. At the end of the quarter ending June 29, Ironwood Pharmaceuticals Inc.’s stock balance sheet showed total liabilities of 950.0 million. Shareholders own equity worth $156.03 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 10 August was 28.83%, suggesting the stock is oversold, with historical volatility in this time frame at 60.08%.
As of today, IRWD’s price is $10.42 -11.81% or -$1.30 from its 5-day moving average. IRWD is currently trading -6.00% lower than its 20-day SMA and -6.36% lower than its 100-day SMA. However, the stock’s current price level is -9.67% below the SMA50 and -6.45% below the SMA200.
The stochastic %K and %D were 4.56% and 31.95%, respectively, and the average true range (ATR) was 0.37. With the 14-day stochastic at 8.44% and the average true range at 0.33, the RSI (14) stands at 33.50%. The stock has reached -0.86 on the 9-day MACD Oscillator while the 14-day reading was at -0.88.
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 1 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 $20.00, 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 $14.67.
