Ironwood Pharmaceuticals (NASDAQ:IRWD) Shares Gap Down on Disappointing Earnings

Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD)’s share price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $5.04, but opened at $4.28. Ironwood Pharmaceuticals shares last traded at $4.65, with a volume of 175,590 shares traded.

The biotechnology company reported $0.02 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.07). The business had revenue of $91.60 million for the quarter, compared to analyst estimates of $91.22 million. Ironwood Pharmaceuticals had a negative return on equity of 6.37% and a net margin of 2.30%. The firm’s revenue for the quarter was down 19.4% compared to the same quarter last year. During the same period in the prior year, the company posted $0.12 EPS.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on IRWD shares. StockNews.com raised Ironwood Pharmaceuticals from a “buy” rating to a “strong-buy” rating in a research report on Monday, November 4th. Capital One Financial downgraded Ironwood Pharmaceuticals from an “overweight” rating to an “equal weight” rating and cut their price target for the stock from $12.00 to $4.00 in a report on Thursday, August 8th. Leerink Partners assumed coverage on Ironwood Pharmaceuticals in a research note on Monday, September 9th. They issued a “market perform” rating and a $5.00 price objective for the company. Craig Hallum cut their target price on shares of Ironwood Pharmaceuticals from $14.00 to $10.00 and set a “buy” rating on the stock in a research note on Friday, August 9th. Finally, Wells Fargo & Company decreased their price target on shares of Ironwood Pharmaceuticals from $14.00 to $12.00 and set an “overweight” rating for the company in a research note on Friday, August 9th. Three analysts have rated the stock with a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $12.17.

Insider Activity at Ironwood Pharmaceuticals

In other Ironwood Pharmaceuticals news, insider Minardo John sold 9,910 shares of the firm’s stock in a transaction that occurred on Monday, August 12th. The shares were sold at an average price of $4.27, for a total transaction of $42,315.70. Following the sale, the insider now owns 284,661 shares of the company’s stock, valued at approximately $1,215,502.47. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 12.90% of the stock is currently owned by corporate insiders.

Institutional Trading of Ironwood Pharmaceuticals

Large investors have recently made changes to their positions in the company. Intech Investment Management LLC acquired a new stake in shares of Ironwood Pharmaceuticals in the third quarter valued at approximately $181,000. Connor Clark & Lunn Investment Management Ltd. raised its position in Ironwood Pharmaceuticals by 150.7% in the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 126,289 shares of the biotechnology company’s stock valued at $520,000 after purchasing an additional 75,917 shares during the last quarter. Royce & Associates LP boosted its stake in Ironwood Pharmaceuticals by 10.8% during the 3rd quarter. Royce & Associates LP now owns 662,934 shares of the biotechnology company’s stock worth $2,731,000 after purchasing an additional 64,353 shares during the period. KBC Group NV grew its position in Ironwood Pharmaceuticals by 59.3% during the 3rd quarter. KBC Group NV now owns 8,593 shares of the biotechnology company’s stock worth $35,000 after purchasing an additional 3,198 shares during the last quarter. Finally, GSA Capital Partners LLP increased its stake in Ironwood Pharmaceuticals by 194.9% in the third quarter. GSA Capital Partners LLP now owns 351,193 shares of the biotechnology company’s stock valued at $1,447,000 after purchasing an additional 232,087 shares during the period.

Ironwood Pharmaceuticals Stock Up 6.4 %

The firm has a market capitalization of $792.31 million, a PE ratio of 124.00 and a beta of 0.47. The business’s fifty day moving average price is $4.32 and its 200 day moving average price is $5.61.

About Ironwood Pharmaceuticals

Ironwood Pharmaceuticals, Inc, a healthcare company, focuses on the development and commercialization of gastrointestinal (GI) products. It markets linaclotide, a guanylate cyclase type-C (GC-C) agonist for the treatment of adults suffering from irritable bowel syndrome with constipation or chronic idiopathic constipation under the LINZESS name in the United States, Mexico, Japan, Saudi Arabia, and China, as well as under the CONSTELLA name in the Canada and European countries.